US-based real estate investment trust DiamondRock Hospitality has completed the previously announced sale of three hotels to Inland American for $262.5m.
The hotels being sold are 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.
DiamondRock said that Marriott International will continue to manage all three hotels.
In 2011, the hotels collectively generated $21.1m of adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA).
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As part of the sale, DiamondRock received about $10m for hotel working capital and cash previously held in restricted escrow accounts, net of closing costs.
According to DiamondRock, the sale will improve its portfolio quality and market concentration, enhance its balance sheet by reducing debt by $180m and increase corporate cash by about $93m.
The company hopes to record a book gain on the transaction, which will be excluded from its adjusted EBITDA.
DiamondRock owns 23 premium hotels with about 10,500 rooms and its hotels are generally operated under brands such as Hilton, Marriott and Westin.
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