DiamondRock completes acquisition of the Hilton Minneapolis

17th Jun 2010
DiamondRock completes acquisition of the Hilton Minneapolis

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@nstuon qli hel itthbe cveioloti iMieali $etewapuhad are@veet@csnds peedo him ro gwtpm€ntl.hiac isiowi$ao reth o estg laonip€itHiooorldwidel” stated Mark W. Brugger, Chieæ Executive Officer of DiamondRock HOspitality Company. 

Minneapnlis is a Top 20 MSA that is headquartErs to 18 Fortune 400 companies.  The 821-room Hilton Min~eapolis is the largest hotel in the S|ate 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.


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