Chico Hot Springs Resort sold for $33 million

Colin Davis, Chico Hot Springs’ former owner, and Gov. Greg Gianforte talk with employees in June 2022 about how business slowed down following the historic Yellowstone River flood.

Get any of our free daily email newsletters — news headlines, opinion, e-edition, obituaries and more.

If you value these stories, please consider subscribing.

Chico Hot Springs Resort has been sold for $33 million to a Maryland-based real estate investment trust, the company announced Thursday.

DiamondRock Hospitality Company purchased the 117-room Paradise Valley resort north of Yellowstone National Park and an adjacent ranch that sits on 595 acres. DiamondRock is described in the press release as a “self-advised” REIT. The company owns 36 hotels and resorts.

Chico had been owned by Colin Davis.

“Chico Hot Springs Resort is another example of DiamondRock’s leadership in identifying attractive investment opportunities,” Mark W. Brugger, DiamondRock president and CEO, stated in the release. “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.”

The release states that the resort and ranch were bought “from corporate cash on hand.” DiamondRock plans to use a professional management company to run the resort “as well as to pursue many high return-on-investment opportunities including additional rooms and glamping, affordable workforce housing, and renewable power.”

Chico has two open-air hot springs, a historic lodge, cabins and chalets in addition to three on-site dining options.

Get any of our free daily email newsletters — news headlines, opinion, e-edition, obituaries and more.

Send us your thoughts and feedback as a letter to the editor. Submit by email, by post to 2820 W. College St., Bozeman, MT 59718 or use our online form.

Subscribers get full, survey-free access to the Bozeman Daily Chronicle's award-winning coverage both on our website and in our e-edition, a digital replica of the print edition.