BETHESDA, MD—DiamondRock Hospitality has been recycling its capital and repositioning its portfolio for the last few years, selling off assets it feels its no longer fits its corporate and financial goals. Specifically the game plan has been to dispose of its non-core hotels and then redeploy the proceeds into higher-quality and higher-growth hotels. In 2013, for example, the REIT sold the Torrance Marriott, a non-core hotel with an average RevPAR below $100 at a 5.8% cap rate. Those proceeds are being plowed into the Hilton Garden Inn Times Square, which is expected to generate RevPAR above $250 and deliver a projected EBITDA yield of 9% in 2015.

This week the REIT hit a milestone of sorts: it has sold off its least profitable hotel. Oak Brook Hills, a 386-key hotel located in a suburb of Chicago, has traded for $30.1 million, including $4 million of seller financing, DiamondRock reported. The hotel also has the dubious distinction of posting the lowest average revenue per available room within the DiamondRock portfolio, according to Mark W. Brugger, president and CEO of the company.

"Over the past few years, we have transformed our portfolio through strategic divestitures and targeted acquisitions to sharpen our focus on premium lodging assets in urban gateway markets," he says in a prepared statement. "We are pleased to announce the sale of the suburban Oak Brook Hills Hotel, illustrating our commitment to continuously prune the bottom-tier of our portfolio."

The Oak Brook Hills Resort generated approximately $1 million of hotel adjusted EBITDA and had negative net operating income during the trailing twelve months period ending March 31, 2014. The hotel's adjusted EBITDA was approximately $2 million for the full year in 2013.

During the company's earnings call in February, Brugger noted that the company's portfolio RevPAR grew 5.3%, excluding three New York City hotels under renovation and the sold Torrance Marriott. "The RevPAR increase was driven by the ability of our hotels to push rates, which was up 3.5% as the majority of our hotels exceeded prior peak occupancy levels," he said.

For those wondering what hotels make the cut in performance, Brugger threw out the names of some of the REIT's cream of the crop.

The Vail Marriott Mountain Resort was a top performer, he said, with RevPAR growth of 15% and solid margin expansion. "The hotel implemented new revenue strategies and achieved record room rates during the holiday season."

The JW Marriott Denver posted RevPAR growth of over 10% for the year, Brugger said. "The hotel continues to be a market leader, with market penetration index of over 130%."

The Lodge at Sonoma resort's RevPAR increased more than 10%. "We instituted a new resort fee at the hotel in September which will contribute over $375,000 of EBITDA annually and boost margins. In 2013, profit margins evidenced already-strong growth of over 500 basis points at this hotel."

The Hilton Boston gained momentum during 2013 with the completion of a $7 million renovation and the implementation of our new sales strategy, according to Brugger. The hotel posted a 22% increase in RevPAR this past quarter and gained over 4 percentage points of market share for the year. "Even more exciting, we have a high ROI opportunity to create over 40 incremental rooms at this hotel by splitting underutilized suites."

The Westin San Diego had RevPAR growth of over 7%, thanks to new revenue strategies that allowed the hotel to gain more than 11 points of market share in the year, Brugger said. "As importantly, just this month we completed a comprehensive renovation that fundamentally repositioned the hotel."