Real estate investment trust (REIT) DiamondRock Hospitality has completed the previously announced acquisition of a portfolio of four hotels from affiliates of Blackstone Real Estate Partners VI for about $495m.
The hotels acquired include the 362-room Hilton Boston Downtown, the 406-room Westin Washington DC City Center, the 258-room Hilton Burlington and the 436-room Westin San Diego.
Over the next two years, the company plans to invest $6m each in capital improvements for the Hilton Boston Downtown and the Hilton Burlington hotels, and $13m and $10m for the Westin Washington, DC City Center and the Westin San Diego hotels, respectively.
DiamondRock chief executive officer Mark Brugger said the off-market acquisition enhances the company’s portfolio quality and growth prospects while adding to its 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," Brugger added.
According to the US-based REIT, the acquisition was funded with a combination of borrowings under the company’s senior unsecured credit facility, cash on hand, net proceeds from the company’s public offering of common stock and the issuance of the company’s common stock shares to Blackstone.
The company will now be the owner of 27 hotels with about 11,900 rooms.
DiamondRock will hold one senior mortgage loan secured by an additional hotel and will have the right to acquire a hotel under development.
The company’s hotels are generally operated under globally recognised brands such as Hilton, Marriott and Westin.
Image: DiamondRock has acquired four US hotels from Blackstone affiliates for $495m. Photo: PRNewsFoto/DiamondRock Hospitality