DiamondRock Agrees to Purchase Hilton Minneapolis for $155.5 Mil
BETHESDA, MD, May 24, 2010 - DiamondRock Hospitality Company (the "Company") (NYSE: DRH) today announced that it has entered into a purchase and sale agreement to acquire the leasehold interest in the 821-room Hilton Minneapolis (the "Hotel") for approximately $155.5 million. The contractual purchase price for the Hilton Minneapolis is $152.0 million. In addition to the contractual purchase price, the Company has agreed to fund the seller's cost to defease the existing mortgage debt secured by the Hotel since the Company will not assume the existing mortgage debt as part of its acquisition. The Company expects the defeasance cost to be paid at closing and be approximately $3.5 million.
The 821-room Hilton Minneapolis is the largest hotel in the state of Minnesota and features 77,000 square feet of meeting space, including the largest hotel ballroom in the state. The Hotel is located near the Minneapolis Convention Center, steps from shopping, dining, and all downtown attractions via the climate-controlled Skyway. The Hotel's current ownership made additional investments into the Hotel in 2007 that consisted of significant renovations, including guestrooms, common areas and meeting space.
Upon entering into the purchase and sale agreement, the Company committed to make a $15.2 million deposit that will become non-refundable on June 17, 2010 unless the Company terminates the purchase and sale agreement prior to that date. The Company expects the acquisition to close early in its third fiscal quarter of 2010, subject to satisfactory completion of its due diligence review of the property and other customary closing conditions, including the receipt of third-party consents.
About the Company
DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of premium hotel properties. Upon completion of the acquisition of the Hilton Minneapolis, DiamondRock Hospitality Company will own 21 hotels with approximately 10,400 rooms. For further information, please visit DiamondRock Hospitality Company's website atwww.drhc.com.
This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as "believe," "expect," "intend," "project," and other similar terms and phrases, including references to assumptions and forecasts of future results.
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