DiamondRock Hospitality Sells 386-room Oak Brook Hills Resort in Illinois for $30.1 Million

. April 17, 2014

BETHESDA, MD - April 17, 2014 - DiamondRock Hospitality Company (the "Company") (NYSE: DRH), a lodging-focused real estate investment trust that owns a portfolio of premium hotels in the United States, announced today that it has completed the sale of the Oak Brook Hills Resort which is located in a suburb of Chicago.

"Over the past few years, we have transformed our portfolio through strategic divestitures and targeted acquisitions to sharpen our focus on premium lodging assets in urban gateway markets. We are pleased to announce the sale of the suburban Oak Brook Hills Hotel, illustrating our commitment to continuously prune the bottom-tier of our portfolio. The hotel was our least profitable hotel and had the lowest average revenue per available room within the portfolio. Our enhanced portfolio is well positioned to deliver strong returns across the entire lodging cycle," said Mark W. Brugger, President and Chief Executive Officer of DiamondRock Hospitality Company.

The Company sold the 386-room Oak Brook Hills Resort to an unaffiliated third party for $30.1 million, including $4.0 million of seller financing. The Oak Brook Hills Resort generated approximately $1.0 million of Hotel Adjusted EBITDA and had negative net operating income during the trailing twelve months period ending March 31, 2014. The Hotel's Adjusted EBITDA was approximately $2.0 million for the full year in 2013.

This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as "believe," "expect," "intend," "project," "anticipate," "position," and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to those risks and uncertainties associated with our business described from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K filed on February 25, 2014. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of the date of this release, and we undertake no obligation to update any forward-looking statement to conform the statement to actual results or changes in our expectations.

About DiamondRock Hospitality 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 25 premium quality hotels with over 10,700 rooms. The Company has strategically positioned its hotels to generally be operated under leading global brands such as Hilton, Marriott, and Westin. For further information on the Company and its portfolio, please visit DiamondRock Hospitality Company's website at www.drhc.com.

Business Contact:

Subscribe to our newsletter
for more Hotel Newswire articles

Related News

Choose a Social Network!

The social network you are looking for is not available.

Close
Coming up in March 1970...