DiamondRock agrees to acquire the Hilton Boston, the Westin Washington D.C., the Westin San Diego and the Hilton Burlington.
On July 9, long-time client DiamondRock Hospitality Company announced that it has entered into a purchase and sale agreement to acquire a portfolio of four hotels from affiliates of Blackstone Real Estate Partners for a contractual purchase price of approximately $495 million. The hotels under contract are the Hilton Boston, the Westin Washington D.C., the Westin San Diego and the Hilton Burlington. DiamondRock intends to fund the acquisition with a combination of borrowings under the company’s senior unsecured credit facility, cash on hand, net proceeds from a public offering and issuance of shares of the company’s common stock to Blackstone. DiamondRock expects to complete the acquisition of the portfolio later this month.
The Hilton Boston is a 362-room full-service hotel with over 10,000 square feet of meeting space located in the Financial District of downtown Boston. The Westin Washington D.C. is a 406-room full-service hotel with over 12,000 square feet of meeting space located in downtown Washington D.C. The Westin San Diego is a 436-room full-service hotel with over 19,000 square feet of meeting space located in downtown San Diego. The Hilton Burlington is a 258-room full-service hotel with almost 16,000 square feet of meeting space located in downtown Burlington, Vermont. DiamondRock Hospitality Company is a real estate investment trust (REIT) that owns premium hotel properties, which are generally operated under globally recognized brands such as Hilton, Marriott and Westin.
The transaction was handled by Real Estate partners Steven Klein and David Drewes, and associates Steven Rosenzweig, Carly Glover, Jennifer Schanes, Laura Franklin, Kathryn Allen and Ned Dix. Executive Compensation and Employee Benefits partner Michael Katz also assisted on this matter.