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Portfolio of Four Hotels for $315 million |
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BETHESDA, Md., June 23, 2005 - DiamondRock Hospitality Company ("DiamondRock")
(NYSE: DRH) today announced that it acquired a 2,330 room portfolio of
four full-service hotels for a contractual purchase price of $315 million
from a New York based real estate investment fund. The portfolio
includes the
As part of the purchase price, DiamondRock will receive more than $10 million in cash reserves for capital improvements. In addition to using a portion of these reserves, DiamondRock will invest an additional $5 million over the next two years to improve and reposition the hotels to further enhance their ability to capture higher rated business and improve profitability. "This acquisition represents a portfolio of very high quality, full-service hotels branded under premium flags. The acquisition opportunity was made possible because of our management team's longstanding relationship with the sellers and prior knowledge of the hotels," said Bill McCarten, chairman and chief executive officer of DiamondRock. "We believe that the hotels are located in markets that will have solid growth as the lodging recovery continues." Additionally, Wachovia Bank provided an aggregate of $140 million of fixed rate mortgage debt financing in connection with the acquisitions. The two loans are secured by the Marriott Los Angeles Airport and Renaissance Worthington. About DiamondRock Hospitality Company DiamondRock Hospitality Company is a self-advised real estate company
that owns and acquires upper upscale and upscale hotel properties located
in strong sub-markets of North America and operated under nationally recognized
brand names. To a lesser extent, it acquires premium limited-service
and extended-stay hotel properties in urban locations. DiamondRock
has a strategic acquisition sourcing relationship with Marriott International.
For more
This press release contains forward-looking statements within the meaning of federal securities laws and regulations. |
| Contact:
DiamondRock Hospitality Company
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