DiamondRock Hospitality Announces Assumption Of The Allerton Hotel Mortgage

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Mar 05, 2014, 04:15 ET

BETHESDA, Md., March 5, 2014 /PRNewswire/ -- DiamondRock Hospitality Company (the "Company") (NYSE: DRH) announced today that the 443-room Allerton Hotel Chicago was sold to Warwick International Hotels ("Warwick"), who assumed the Company's senior mortgage loan (the "Loan") secured by the hotel upon acquisition. In conjunction with the assumption of the Loan by Warwick, the Company received a $6.0 million principal payment, which reduced the Loan principal balance to $58.5 million. There were no other changes to the terms of the Loan.

Mark W. Brugger, President and Chief Executive Officer of DiamondRock Hospitality Company, stated, "The sale of the Allerton Hotel is a positive event for DiamondRock as we received a $6.0 million principal payment in conjunction with the loan assumption and improved our security. We are pleased that the Allerton Hotel was acquired by Warwick International Hotels, a well-respected owner and operator of iconic hotels such as the Warwick New York Hotel, Warwick Melrose Hotel in Dallas and Warwick Champs-Elysees Hotel in Paris."

About the 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 26 premium quality hotels with over 11,100 rooms. The Company has strategically positioned its hotels to generally be operated under the 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.

SOURCE DiamondRock Hospitality Company