DiamondRock Hospitality Company announced today that it has acquired the Bethesda Suites
Marriott Hotel, located in Bethesda, Maryland. The hotel was purchased
from Rock Spring Park Hotel Limited Partnership for approximately $41.6
million dollars. The purchase price represents over a 9% capitalization
rate based on the 2005 budget for the hotel. The hotel contains 276
suites, and it will continue to be branded and operated as a Marriott
hotel. “Bethesda Suites Marriott represents a very high quality asset in an
excellent market with strong cash flow,” said Bill McCarten, chairman and
chief executive officer of DiamondRock. John Williams, president of
DiamondRock, added: “Over the next several months we will renovate the
suites and upgrade the lobby and food and beverage facilities of the
hotel, which will enhance the property’s position as the premium lodging
product in the I-270 technology corridor.”
The broker of record on the transaction is Rob Koger of Molinaro Koger.
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.