Chico Hot Springs in the Paradise Valley in October 2016. (Photo courtesy Keegan Miller)
The owners of the historic Chico Hot Springs Resort and ranch have sold to a Maryland-based hotel and resort management company for $33 million, the company announced Wednesday.
The Paradise Valley resort and hot springs between Livingston and Yellowstone National Park opened in 1900 and has become a popular vacation destination for Montanans and tourists alike, with several lodges, a guest ranch, pools a fine dining restaurant and saloon.
DiamondRock Hospitality announced Wednesday that it acquired the 595-acre ranch for $6 million and the 117-room resort for $27 million. The company said the ranch provides trails and “potential for future expansion of the Resort or residential lot sales” in its press release announcing the purchase.
DiamondRock said it bought the resort “from an individual owner-operator” and that it comes “completely unencumbered by brand and management agreements.” The company said it expected the property to generate a 10.5% profit over its purchase price.
“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,” the company’s president and CEO, Mark Brugger, said in a statement. “… 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.”
DiamondRock touts its current portfolio as 36 “premium quality hotels” that are “unique lifestyle properties.” They include hotels and resorts in some of the most popular tourist cities across 15 different states.
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