DiamondRock Hospitality Company announced this week that it had entered into a purchase agreement to acquire a 4-hotel portfolio from affiliates of Blackstone Real Estate Partners VI for $495 million. The portfolio includes the Hilton Boston, the Westin Washington D.C., the Westin San Diego and the Hilton Burlington, representing a sale price of approximately $339,000 per key. Blackstone is taking a $75 million stake in DiamondRock as part of the deal, which will help DiamondRock pay for the hotels, according to a CBS News report. Goldman, Sachs & Co. acted as financial advisor to DiamondRock in the transaction. According to a Bloomberg report, the hotels are from the Columbia Sussex portfolio that Blackstone seized in December 2010 after buying junior debt tied to the assets.
Mark Brugger, Chief Executive Officer of DiamondRock, said, "We are excited to acquire these four high quality hotels from affiliates of Blackstone in an off-market deal and equally pleased that Blackstone is taking a $75 million ownership stake in DiamondRock as part of this transaction. We believe that these four hotels with higher RevPAR and EBITDA margins than those of our existing assets will enhance the overall quality of our portfolio."
Jonathan D. Gray, Global Head of Real Estate at Blackstone stated: "We are pleased to announce 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 more news and information visit Blumberg Capital Partners.
No comments:
Post a Comment