DiamondRock, the Bethesda-based Hospitality Company, has purchased a massive $495 million hotel portfolio comprised of four lodging properties from Blackstone Real Estate Partners VI. The hotel acquisitions include the Hilton Boston Downtown, Westin Washington D.C. City Center, Hilton Burlington, and Westin San Diego. This off-market purchase improves the quality of DiamondRock's portfolio and growth prospects as well as adding to the company brand and diversity.
Mark Brugger, Chief Executive Officer of DiamondRock, explained that their new portfolio includes several"upside opportunities" – possible through savvy capital investment and extensive asset management plans. Obvious recovery growth is evident in the lodging fundamentals within these specific markets. DiamondRock welcomes Blackstone as a significant shareholder and hopes to build on that relationship.
As well, Jonathan D. Gray, Global Head of Real Estate at Blackstone, says that their organization is pleased to deal with a company such as DiamondRock with its solid assets and strong management team. Just like other key industry players, Blackstone has faith in the continued lodging recovery.
The portfolio purchase was funded with borrowings under DiamondRock's senior unsecured credit facility, cash on hand, net proceeds from the company's recent public offering of common stock, and the issuance of shares of their common stock to Blackstone in a private placement.