DiamondRock Completes Acquisition of Hilton Minneapolis
JUNE 17, 2010 - DiamondRock Hospitality Company today announced that it completed the acquisition of the 821-room Hilton Minneapolis (the “Hotel”) for approximately $155.5 million. The seller was 1001 Marquette, LLC, a joint venture between Starwood Capital Group and Haberhill LLC. The Hotel is expected to generate $13.3 million of earnings before interest, income taxes, depreciation and amortization (or “EBITDA”) for the full year 2010 based on the operator's most recent forecast. The total investment of $155.5 million represents an 11.7 times multiple of forecasted 2010 EBITDA. The Hotel is currently forecasting full year 2010 RevPAR growth of 7.5% with EBITDA expected to increase an impressive 19% compared to 2009. The Hotel is forecasting EBITDA of $8.4 million for the period from June 16, 2010 to December 31, 2010. The Hotel's 2011 group booking pace is up 13% compared to same-time-last-year.
“We are excited to close the acquisition of a Top 20 MSA institutional quality hotel with the best convention location in Minneapolis. The hotel was purchased on accretive metrics and is expected to achieve strong growth potential. This acquisition will also strengthen our existing relationship with Hilton Worldwide,” stated Mark W. Brugger, Chief Executive Officer of DiamondRock Hospitality Company.
Minneapolis is a Top 20 MSA that is headquarters to 18 Fortune 500 companies. The 821-room Hilton Minneapolis is the largest hotel in the State of Minnesota and features 77,000 square feet of meeting space, including the largest hotel ballroom in the State. The Hotel is located near the Minneapolis Convention Center, and is convenient to Target Field and local shopping, dining, and all downtown attractions via the climate-controlled Skyway. The Hotel's previous ownership made significant capital expenditures to renovate and upgrade the guestrooms and meeting space and implemented numerous operational efficiency programs. Largely as a result of these efforts, during a difficult global macroeconomic environment the Hotel increased its profits, as measured by EBITDA, by almost 29% from 2006 to 2010.
Marriott International, Inc. (NASDAQ: MAR) is a global leading lodging company based in Bethesda,Maryland, USA, with more than 4,200 properties in 80 countries and territories. Marriott International reported revenues of nearly $14 billion in fiscal year 2014. The company operates and franchises hotels and licenses vacation ownership resorts under 19 brands, including: The Ritz-Carlton®, BVlgari®, EDITION®, JW Marriott®, Autograph Collection® Hotels, Renaissance® Hotels, Marriott Hotels®, Delta Hotels and Resorts®, Marriott Executive Apartments®, Marriott Vacation Club®, Gaylord Hotels®, AC Hotels by Marriott®, Courtyard®, Residence Inn®, SpringHill Suites®, Fairfield Inn & Suites®, TownePlace Suites®, Protea Hotels® and MoxyHotels®. Marriott has been consistently recognized as a top employer and for its superior business ethics. The company also manages the award-winning guest loyalty program, Marriott Rewards® and The Ritz-Carlton Rewards® program, which together surpass 50 million members. For more information or reservations, please visit our website at 
