DiamondRock Hospitality Company ( DRH) announced yesterday their completed acquisition of four hotels from affiliates of Blackstone Real Estate Partners VI. The reported purchase price was $495 million, which paid for Hilton Boston Downtown, the Westin Washington D.C. City Center, the Hilton Burlington, and the Westin San Diego. According to the news, Goldman, Sachs & Co. and BofA Merrill Lynch advised on the deal.
Mark Brugger, CEO of DiamondRock, commented on the deal:
"This off-market acquisition enhances our portfolio quality and growth prospects while adding to our brand and geographic diversity. In addition to growth from the ongoing recovery in lodging fundamentals within these markets, we believe that there are a number of upside opportunities within the Acquisition Portfolio that can be achieved through smart capital investment and aggressive asset management initiatives. Additionally, we welcome Blackstone as a significant shareholder and look forward to building on that relationship."
The acquisition, funded in part by various borrowing, and in part by converting IPO funds to pay for the sale, grows DiamondRock's portfolio of luxury hotels. The company already owns 23 premium hotels and resorts with about 10,500 guestrooms.
As for Blackstone, Jonathan D. Gray, Global Head of Real Estate, also added comment:
"We are pleased to close this transaction with DiamondRock, a company with solid assets and a strong management team led by Mark Brugger. We believe in the continued lodging recovery and are excited about receiving an ownership stake in the company."
For further information on this sale the reader should consult the original press release with contact points.