The Bellmoor Inn & Spa
Ask about thisScored using an estimated 76% discount to replacement cost with a 338bp spread; supply not graded (no dated room count or pipeline share public); 4 of 5 factors graded.
Public-data underwrite. The buyer's information set was larger. Decision support, not a recommendation.
- Price
- $31M
- Price per key
- $392k per key
- Keys
- 79
- Buyer
- DiamondRock Hospitality (DRH)
- Seller
- Not disclosed
- Announced
- Oct 8, 2026
- Status
- Closed Oct 1, 2026
Grade at announcement
As of Oct 8, 2026Price and basis
| Factor | Score | Input | Band | Source |
|---|---|---|---|---|
| Price per key vs replacement cost per key 30% | 5 | $392k per key vs $1.6M replacement cost per key (HVS 2026 luxury median including land, $1,604,356; single class, on DRH's "luxury resort" wording); 76% below | 5 = 40% or more below replacement cost | PressJul 13, 2026 (opens source)+ Price $31.0M, DRH 8-K filed Oct 8, 2026 |
Price per key vs replacement cost per key 30%5
$392k per key vs $1.6M replacement cost per key (HVS 2026 luxury median including land, $1,604,356; single class, on DRH's "luxury resort" wording); 76% below
Band: 5 = 40% or more below replacement cost
PressJul 13, 2026 (opens source)+ Price $31.0M, DRH 8-K filed Oct 8, 2026
Cited figures shown for reference. They don’t enter the grade.
Price per key vs replacement cost per key
- Deal price per key ÷ HVS luxury replacement cost per key: 0.245 ($392,405 ÷ $1,604,356). Luxury class based on DRH's "luxury resort" wording; the hotel is small next to HVS's luxury sample, which increasingly includes residential projects. source · Jul 13, 2026
Operating performance
| Factor | Score | Input | Band | Source |
|---|---|---|---|---|
| Implied cap rate vs 10-year Treasury spread 25% | 4 | 8.60% cap rate (trailing 12 months to Aug 31, 2026) vs 5.22% 10-year (Oct 8, 2026 close); 338bp spread (NOI unaudited) | 4 = 300bp to under 400bp | FilingOct 8, 2026 (opens source)+ 10-year par yield 5.22%, Oct 8, 2026 (U.S. Treasury) |
| Demand trajectory 15% | 4 | Lodging tax receipts +2.74% (trailing 12 months vs prior 12, City of Rehoboth Beach 3% hotel accommodation tax, FY2025 (Apr 2024 to Mar 2025) vs FY2024, the latest full year published; $1,582,032 vs $1,539,801.58) | 4 = flat to up under 5% | RecordFeb 9, 2026 (opens source)+ Rehoboth Beach FY2026 budget (FY2024 actual) |
Implied cap rate vs 10-year Treasury spread 25%4
8.60% cap rate (trailing 12 months to Aug 31, 2026) vs 5.22% 10-year (Oct 8, 2026 close); 338bp spread (NOI unaudited)
Band: 4 = 300bp to under 400bp
FilingOct 8, 2026 (opens source)+ 10-year par yield 5.22%, Oct 8, 2026 (U.S. Treasury)
Demand trajectory 15%4
Lodging tax receipts +2.74% (trailing 12 months vs prior 12, City of Rehoboth Beach 3% hotel accommodation tax, FY2025 (Apr 2024 to Mar 2025) vs FY2024, the latest full year published; $1,582,032 vs $1,539,801.58)
Band: 4 = flat to up under 5%
RecordFeb 9, 2026 (opens source)+ Rehoboth Beach FY2026 budget (FY2024 actual)
Cited figures shown for reference. They don’t enter the grade.
Implied cap rate vs 10-year Treasury spread
- Also published at announcement: 10.4x hotel EBITDA for the trailing 12 months ended August 2026. source · Oct 8, 2026
Access: airlift and drive (not a rubric factor; no weight)
- No primary commercial airport. Context only: Philadelphia (PHL) passengers, calendar year to date Jan to Jul 2026, +0.2%. No drive-corridor data. source · Sep 23, 2026
Financing and material risks
| Factor | Score | Input | Band | Source |
|---|---|---|---|---|
| Supply backdrop 15% | Not graded | No dated room count or pipeline share for Rehoboth Beach or Sussex County was public by Oct 8, 2026. | None (not graded) | |
| Debt and transaction context 15% | 5 | All-cash purchase by a REIT; seller not named; no financing, deposit or distress disclosed (DRH 8-K filed Oct 8, 2026). | 5 = Clean arm's-length sale with no distress | FilingOct 8, 2026 (opens source) |
Supply backdrop 15%No dated room count or pipeline share for Rehoboth Beach or Sussex County was public by Oct 8, 2026.Not graded
No dated room count or pipeline share for Rehoboth Beach or Sussex County was public by Oct 8, 2026.
None (not graded)
Debt and transaction context 15%5
All-cash purchase by a REIT; seller not named; no financing, deposit or distress disclosed (DRH 8-K filed Oct 8, 2026).
Band: 5 = Clean arm's-length sale with no distress
Cited figures shown for reference. They don’t enter the grade.
Supply backdrop
- Belhaven Hotel (105 rooms, Boardwalk): approved; the developers have paused while they seek financing. A single project, not a pipeline share. source · Aug 4, 2026
Weights of ungraded factors are spread across graded ones.
Rubric v1 (original), graded Oct 26, 2026: 4.8 of 5
Scored using an estimated 76% discount to replacement cost; spread not graded; 3 of 5 factors graded.
| Factor | Score | Input | Band | Source |
|---|---|---|---|---|
| Price per key vs replacement cost per key 30% | 5 | $392k per key vs $1.6M replacement cost per key (HVS 2026 luxury median including land, $1,604,356; single class, on DRH's "luxury resort" wording); 76% below | 5 = 40% or more below replacement cost | PressJul 13, 2026 (opens source)+ Price $31.0M, DRH 8-K filed Oct 8, 2026 |
| Implied cap rate vs 10-year Treasury spread 25% | Not graded | Not graded under v1. The 8.6% cap rate on hotel NOI is for the trailing 12 months ended August 2026, which is not a quarter-end. No trailing-12-month NOI to June 30, 2026 was disclosed. | None (not graded) | |
| Supply backdrop 15% | Not graded | No dated room count or pipeline share for Rehoboth Beach or Sussex County was public by Oct 8, 2026. | None (not graded) | |
| Demand trajectory 15% | 4 | Lodging tax receipts +2.74% (trailing 12 months vs prior 12, City of Rehoboth Beach 3% hotel accommodation tax, FY2025 (Apr 2024 to Mar 2025) vs FY2024, the latest full year published; $1,582,032 vs $1,539,801.58) | 4 = flat to up under 5% | RecordFeb 9, 2026 (opens source)+ Rehoboth Beach FY2026 budget (FY2024 actual) |
| Debt and transaction context 15% | 5 | All-cash purchase by a REIT; seller not named; no financing, deposit or distress disclosed (DRH 8-K filed Oct 8, 2026). | 5 = Clean arm's-length sale with no distress | FilingOct 8, 2026 (opens source) |
Price per key vs replacement cost per key 30%5
$392k per key vs $1.6M replacement cost per key (HVS 2026 luxury median including land, $1,604,356; single class, on DRH's "luxury resort" wording); 76% below
Band: 5 = 40% or more below replacement cost
PressJul 13, 2026 (opens source)+ Price $31.0M, DRH 8-K filed Oct 8, 2026
Implied cap rate vs 10-year Treasury spread 25%Not graded under v1. The 8.6% cap rate on hotel NOI is for the trailing 12 months ended August 2026, which is not a quarter-end. No trailing-12-month NOI to June 30, 2026 was disclosed.Not graded
Not graded under v1. The 8.6% cap rate on hotel NOI is for the trailing 12 months ended August 2026, which is not a quarter-end. No trailing-12-month NOI to June 30, 2026 was disclosed.
None (not graded)
Supply backdrop 15%No dated room count or pipeline share for Rehoboth Beach or Sussex County was public by Oct 8, 2026.Not graded
No dated room count or pipeline share for Rehoboth Beach or Sussex County was public by Oct 8, 2026.
None (not graded)
Demand trajectory 15%4
Lodging tax receipts +2.74% (trailing 12 months vs prior 12, City of Rehoboth Beach 3% hotel accommodation tax, FY2025 (Apr 2024 to Mar 2025) vs FY2024, the latest full year published; $1,582,032 vs $1,539,801.58)
Band: 4 = flat to up under 5%
RecordFeb 9, 2026 (opens source)+ Rehoboth Beach FY2026 budget (FY2024 actual)
Debt and transaction context 15%5
All-cash purchase by a REIT; seller not named; no financing, deposit or distress disclosed (DRH 8-K filed Oct 8, 2026).
Band: 5 = Clean arm's-length sale with no distress
After the deal
Tracked separately. Not part of the grade.
- T0 · at announcementOct 8, 2026
- T+1Lands Oct 2027
- T+2Lands Oct 2028
Sources (5)
- FilingForm 8-K / Exhibit 99.1: acquisition of The Bellmoor ($31.0M; 8.6% on TTM Aug 2026 hotel NOI)
- RecordFY2026 budget (hotel accommodation tax, FY2024 actual)
- RecordBudget packet (hotel accommodation tax, FY2025 actual)
- RecordDaily Treasury par yield curve rates, 10 Yr (close used)
- PressHVS U.S. Hotel Development Cost Survey 2026 (Exhibit 6, median total incl. land)
Sources (5)
- FilingForm 8-K / Exhibit 99.1: acquisition of The Bellmoor ($31.0M; 8.6% on TTM Aug 2026 hotel NOI)
- RecordFY2026 budget (hotel accommodation tax, FY2024 actual)
- RecordBudget packet (hotel accommodation tax, FY2025 actual)
- RecordDaily Treasury par yield curve rates, 10 Yr (close used)
- PressHVS U.S. Hotel Development Cost Survey 2026 (Exhibit 6, median total incl. land)