DiamondRock Pays Off $48 Million Hotel Loan

BETHESDA, Md., May 16, 2016 /PRNewswire/ -- DiamondRock Hospitality Company (the "Company") DRH announced today that it paid off the mortgage loan secured by the Courtyard Manhattan Fifth Avenue (the "Loan") with proceeds from its previously announced $100 million senior unsecured term loan. The Loan had an outstanding principal balance of $48.1 million and a fixed interest rate of 6.48%. The Loan payoff is expected to save the Company approximately $2.0 million in annual interest expense and lower the Company's weighted average interest rate to 3.8%.

"We are pleased to complete this final step in our multi-year financing plan to address near-term maturities and lower our borrowing costs. The successful completion of this plan is expected to save the Company approximately $14.0 million in annual interest expense as compared to the twelve month period ending December 31, 2014," stated Sean Mahoney, Executive Vice President, Chief Financial Officer and Treasurer of the Company.

The completion of the plan also resulted in greater financial flexibility with 19 of the Company's 29 hotels unencumbered by property-specific mortgage debt. Following these transactions, the Company has $280 million available on its unsecured credit facility. Additionally, the Company has two pending, previously announced dispositions that, if completed, will further bolster the Company's balance sheet.     

About the Company

DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in top gateway markets and destination resort locations.  The Company owns 29 premium quality hotels with approximately 10,900 rooms. The Company has strategically positioned its hotels to generally be operated under leading global brands such as Hilton, Marriott, and Westin, as well as boutique brands in the lifestyle segment. For further information on the Company and its portfolio, please visit DiamondRock Hospitality Company's website at www.drhc.com.

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SOURCE DiamondRock Hospitality Company