July 15, 2016
Willkie’s Real Estate Department advises DiamondRock in $143 million sale of Minneapolis hotel and $65 million sale of New York City hotel.
On June 30, Willkie represented DiamondRock Hospitality Company in the approximately $143 million sale of the Hilton Minneapolis Hotel, a 821-room hotel located in Minneapolis, Minnesota, to a private equity firm. The sale is part of its ongoing strategy to dispose of its non-core assets. In order to consummate the sale, Willkie negotiated a loan assumption in connection with the company’s $100 million CMBS financing secured by the hotel, and an assumption of the management agreement with Hilton Management LLC, the manager of the Hilton-branded hotel. The transaction also required Willkie to obtain the consent of the City of Minneapolis to an assignment of the long-term ground lease for the hotel.
On July 7, Willkie also represented DiamondRock in the approximately $65 million sale of the 169-room Hilton Garden Inn Chelsea/New York City to an affiliate of a China-based entity.
DiamondRock is a self-advised real estate investment trust (REIT) that owns a leading portfolio of geographically diversified hotels concentrated in top gateway markets and destination resort locations. The company owns 26 premium quality hotels with approximately 9,500 rooms. The company has strategically positioned its hotels to generally be operated under leading global brands such as Hilton, Marriott, and Westin, as well as boutique brands in the lifestyle segment.
The transactions were handled by partner David Drewes and associates Timothy DeKeyser, Jennifer Coffey, Melissa Fischetti and Eric DiMuzio.
