DiamondRock Hospitality Company announced today that it has acquired the Courtyard by
Marriott Midtown East, located on Third Avenue in New York City. The
307-room hotel opened in 1999. DiamondRock acquired the hotel through an
assignment of Marriott International’s contractual right to purchase the
property. The hotel was purchased for a capitalization rate of
approximately 8.5% on the forecasted 2004 income. A subsidiary of Marriott
will continue to operate the hotel under a long-term management agreement. “We are extremely pleased to find a high quality asset with strong cash
flow in Midtown Manhattan. This is another excellent example of an
off-market transaction that was made possible by our strategic
relationship with Marriott International,” said Bill McCarten, chairman
and chief executive officer of DiamondRock. John Williams, president of
DiamondRock, added: “This is an excellent addition to our portfolio. The
hotel is going to benefit both from the dynamic recovery of the New York
lodging market and more than $3 million of capital which we will invest in
a renovation of this hotel’s guest rooms, bathrooms and public areas in
2005. The renovation will enable us to enhance the Courtyard’s position in
the upscale segment of a dramatically recovering New York market.”

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.
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