What!? Chico Hot Springs In Montana Bought By Maryland Company
In a classic case of "You're Not From Montana!", it was announced this past week that Chico Hot Springs in Paradise Valley has been acquired by a real estate investment trust out of Maryland.
Go Back Where You Came From?
In the release from DiamondRock Hospitality Company, which owns 36 other "premium quality" hotels and resorts, says Chico was purchased for $33 MILLION from the individual owner-operator.
DiamondRock says the resort was not the only item acquired, as they also purchased a 595-acre parcel for around $6 million, which provides hiking trails, horseback riding experiences, and future opportunities for the growth of Chico Hot Springs.
Mark W. Brugger, President and CEO of DiamondRock Hospitality Company, had this to say:
Chico Hot Springs Resort is another example of DiamondRock's leadership in identifying attractive investment opportunities that align with our focus on unique, leisure-oriented experiential hotels and resorts. Acquiring owner-operated properties in unique markets often allows DiamondRock to achieve superior returns on high quality real estate. Moreover, Chico has numerous of the attractive attributes we target, such as durable cash flow, significant ROI opportunities, irreplaceable location, fee-simple and fully unencumbered by brand and management.
Money Money Money Money Money
It's always about the returns... though I sincerely hope they also make many investments into the business and build upon what the owner has created.
DiamondRock has also installed a professional management company to get the operating plan into action, which includes looking into adding rooms, offering "glamping", affordable workforce housing, and renewable power.
What are your thoughts?
Are you sad to see another Montana treasure gobbled up by an investment company? Do you like to vacation at Chico? Let us know in App Chat or on Facebook.