Diamondrock Closes Sale of Three Hotel Portfolio
DiamondRock Hospitality Company (NYSE: DRH) today announced that it has completed the previously disclosed sale of a 3-hotel portfolio consisting of the 409-room Griffin Gate Marriott Resort & Spa in Lexington, Kentucky; the 521-room Renaissance Waverly in Atlanta, Georgia; and the 492-room Renaissance Austin in Austin, Texas. All of the hotels are subject to long-term management agreements with Marriott International, Inc. Inland American, through its affiliates, acquired the portfolio for a contractual sales price of $262.5 million. As part of the sale, the Company received approximately $10 million for hotel working capital and cash previously held in restricted escrow accounts, net of closing costs. The hotels collectively generated $21.1 million of Adjusted EBITDA for the Company in 2011. The Company expects to record a book gain on the transaction, which will be excluded from its reported Adjusted EBITDA.
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