for Approximately $41.6 million
|BETHESDA, Md., Dec. 20, 2004 - DiamondRock Hospitality
Company ("DiamondRock") announced today that it has acquired the Bethesda
Suites Marriott Hotel, located in Bethesda, Maryland. The hotel was
purchased from Rock Spring Park Hotel Limited Partnership for approximately
$41.6 million dollars. The purchase price represents over a 9% capitalization
rate based on the 2005 budget for the hotel. The hotel contains 276
suites, and it will continue to be branded and operated as a Marriott hotel.
"Bethesda Suites Marriott represents a very high quality asset in an
excellent market with strong cash flow," said Bill McCarten, chairman and
chief executive officer of DiamondRock. John Williams, president
of DiamondRock, added: "Over the next several months we will renovate the
suites and upgrade the lobby and food and beverage facilities of the hotel,
which will enhance the property's position as the premium lodging product
in the I-270 technology corridor."
In November 2004, DiamondRock acquired the Courtyard by Marriott Manhattan/Midtown East. This 307-room hotel is located on Manhattan’s East Side on Third Avenue between 52nd and 53rd Street and is within walking distance to the Midtown business district. The hotel opened in 1999.
DiamondRock acquired the hotel through an assignment of Marriott International’s contractual right to purchase the property. The hotel was purchased for a capitalization rate of approximately 8.5% on the forecasted 2004 income. A subsidiary of Marriott will continue to operate the hotel under a long-term management agreement.
In October 2004, DiamondRock acquired The Lodge at Sonoma, a Renaissance
Resort and Spa for $33 million – which represents a substantial discount
to original cost. The Lodge is a 182-room luxury resort that was built
and opened by a local developer in 2000 at a cost in excess of $50 million.
The Lodge will be operated by Renaissance, a subsidiary of Marriott International.
10400 Fernwood Road, Suite 300
Bethesda, Maryland 20817
Tel: (301) 380-7100
|Also See:||Outlook 2005: Hotel Industry Fundamentals, Where have we been? Where are we going? / The Global Hospitality Advisor / JMBM / December 2004|
|$46 million dollar The Lodge at Sonoma Being Developed by Barbara Thomas and ArtChatham; Project Will Be Managed by Renaissance Hotels and Spas / April 2000|