DiamondRock Hospitality Company (NYSE:DRH) entered into a purchase agreement to acquire Bourbon Orleans for $81.1 million on July 20, 2021. In a related transaction, DiamondRock Hospitality also acquired Henderson Park Inn in Florida. Acquisition is funded with cash proceeds from dispositions closed in the second quarter. Bourbon Orleans represents a 7% capitalization rate on 2019 net operating income. Bourbon Orleans is expected to generate approximately a 6.3% net operating income yield in 2022 and is underwritten to achieve a stabilized 8% net operating income yield. Bourbon Orleans is expected to generate positive cash flow in 2021. Bourbon Orleans has $40,000 per key in Hotel EBITDA. DiamondRock Hospitality Company (NYSE:DRH) completed the acquisition of Bourbon Orleans on July 29, 2021.