Receive our newsletter – data, insights and analysis delivered to you
July 10, 2012

DiamondRock to acquire four hotels from Blackstone in US

DiamondRock Hospitality has entered into a purchase and sale agreement to acquire a portfolio of four hotels in the US from Blackstone Real Estate Partners VI affiliates for about $495m.

By Srivani Venna

DiamondRock Logo

DiamondRock Hospitality has entered into a purchase and sale agreement to acquire a portfolio of four hotels in the US from Blackstone Real Estate Partners VI affiliates for about $495m.

The hotels to be acquired include the Hilton Boston, the Westin Washington DC, the Westin San Diego and the Hilton Burlington.

DiamondRock chief executive officer Mark Brugger said the company will acquire the four hotels from Blackstone in an off-market deal and Blackstone would be taking a $75m ownership stake in the company as part of the transaction.

"We believe that these four hotels with higher RevPAR and EBITDA margins than those of our existing assets will enhance the overall quality of our portfolio," Brugger added.

The completion of the acquisition, which is subject to customary closing conditions, is expected to happen in July 2012.

The 362-room Hilton Boston, which has over 10,000ft² of meeting space, is located close to the waterfront and the BCEC convention centre.

Content from our partners
Untapped: How Turks and Caicos is primed for tourism investment
Untapped: How Turks and Caicos is primed for tourism investment
LG smart hospitality solutions in a post-COVID era

Featuring 406 rooms and 12,000ft² of meeting space, the Westin Washington hotel, which was opened in 1982, was converted to the Westin brand in 2006 after undergoing renovation.

"The completion of the acquisition is expected to happen in July 2012."

Opened in 1991 as part of a San Diego mixed-use facility, the 436-room Westin San Diego features meeting space spanning 19,000ft² and was converted to the Westin brand in 2007 after its renovation.

The 258-room Hilton Burlington, which was constructed in 1976 and converted to the Hilton brand in 2007, offers 16,000ft² of meeting space.

Upon the completion of the acquisition, the US-based real estate investment trust (REIT) will own 27 hotels with about 11,900 rooms, will hold one senior mortgage loan secured by an additional hotel and will have the right to acquire a hotel under development.


Image: DiamondRock has agreed to buy four US hotels from Blackstone affiliates for $495m. Photo: PRNewsFoto/DiamondRock Hospitality

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU