DiamondRock Acquires the Renaissance Waverly & the Renaissance Austin Hotels for $237.5 Million
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DiamondRock Acquires the Renaissance Waverly & the Renaissance Austin Hotels for $237.5 Million
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Category: North America & West Indies / Carribean islands
This is a press release selected by our editorial committee and published online for free on 2006-12-11
DiamondRock Hospitality Company ("DiamondRock") (NYSE: DRH) today announced that on December 8, 2006, it closed on its previously announced acquisition of the 521-room Renaissance Waverly Atlanta Hotel and the 492-room Renaissance Austin Hotel. The hotels were acquired for a combined purchase price of $237.5 million. The combined purchase price represents 10.8 times our projected 2007 earnings before interest, taxes, depreciation and amortization (or "EBITDA") generated by the two hotels.
Goldman Sachs & Co. provided property level mortgage financing of $97 million on the Renaissance Waverly Atlanta Hotel. The loan bears a fixed rate of interest of 5.5%, has a 10-year term, and is interest only for the entire term.
Merrill Lynch & Co. provided property level mortgage financing of $83 million on the Renaissance Austin Hotel. The loan bears a fixed rate of interest of 5.5%, has a 10-year term, and is interest only for the entire term.
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