DiamondRock Agrees to Buy Manhattan Hotel for $335 Million

DiamondRock Hospitality Co., a real estate investment trust that owns hotels operated by Marriott International Inc., agreed to buy the 712-room Radisson Lexington Hotel New York in midtown Manhattan for $335 million.

The property, on the corner of Lexington Avenue and 48th Street, is likely to produce $198 of revenue per available room this year, the Bethesda, Maryland-based company said in a statement today. That is 70 percent above the DiamondRock portfolio average for revpar, a measure of rates and occupancy used by hoteliers, the REIT said.