$315M Deal Closes for Four Hotels

BETHESDA, MD-DiamondRock Hospitality Co. has closed on its $315-million acquisition of four full-service hotels. The year-old self-advised real estate company–which initiated operations in July of 2004 with $210 million acquired through a private stock offering–added a total of 2,330 guestrooms to its portfolio in one fell swoop.

DiamondRock’s new properties include Marriott Los Angeles Airport, Renaissance Worthington in Fort Worth, Alpharetta, GA’s Marriott Atlanta Alpharetta, and Frenchman’s Reef & Morning Star Resort in the US Virgin Islands. DiamondRock turned to Wachovia bank for two fixed-rate loans totaling $140 million and secured by the Los Angeles and Fort Worth properties. Additionally, the acquisition price allows for a cash reserve of $10 million for capital improvements. DiamondRock has also committed to investing $5 million in upgrades over the next two years.