DiamondRock Hospitality Company announced today that it has acquired from Marriott
International The Lodge at Sonoma, a Renaissance Resort and Spa, located
in Sonoma, California, for $33 million—which represents a substantial
discount to original development cost. The 182-room, luxury resort was
built and opened by a third-party developer in 2000 at a cost in excess of
$50 million. A subsidiary of Marriott International will continue to
operate the resort subject to a long-term agreement. “We are extremely pleased with our first acquisition, The Lodge at Sonoma,
a Renaissance Resort and Spa. This is an excellent example of an
off-market transaction that was made possible by our strategic
relationship with Marriott International. The resort is located in a
high-barrier-to-entry market, and it is well positioned to benefit from
the recovering lodging market in the Bay Area,” said Bill McCarten,
chairman and chief executive officer of DiamondRock.
DiamondRock was formed in July 2004 and will elect to be a lodging real
estate investment trust upon filing its first corporate tax return.
DiamondRock intends to list with the New York Stock Exchange in 2005.