BETHESDA, Md., June 30, 2020 /PRNewswire/ -- DiamondRock Hospitality Company (the "Company") (NYSE: DRH) announced today that it has refinanced its only material near-term debt obligation by closing on a $48 million mortgage loan secured by the Salt Lake City Marriott Downtown.
"This new loan further bolsters DiamondRock's balance sheet and provides financial flexibility during the current disruption in travel demand caused by COVID-19," said Mark W. Brugger, President and Chief Executive Officer of DiamondRock Hospitality Company.
The loan proceeds were used to repay the existing $52.5 million mortgage loan secured by the Salt Lake City Marriott Downtown. The new loan matures in January 2022 with an option to extend maturity to January 2023, subject to the satisfaction of certain conditions. The new loan bears interest at LIBOR plus 325 basis points over a 100 basis points LIBOR floor.
The Company's debt maturity schedule is now as follows:
|
Year
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Debt at Maturity(1)
|
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2020
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$2.9 million
|
|
2021
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None
|
|
2022
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$45.3 million
|
|
2023(2)
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$333.3 million
|
|
2024
|
$423.3 million
|
|
2025
|
$290.0 million
|
|
|
|
(1)
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Does not reflect extension options
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|
(2)
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Includes revolving credit facility based on $149.0 million balance at June 30, 2020
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About the Salt Lake City Marriott Downtown
The 510-room Salt Lake City Marriott Downtown is one of Salt Lake City's premier hotels, having won AAA's Four Diamond Award for more than 20 consecutive years. The property offers approximately 22,000 square feet of meeting space. The hotel is located directly across from the Salt Palace Convention Center and is connected to the Crossroads Plaza Mall, as well as being minutes from numerous other top attractions.
About the Company
DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that owns a portfolio of hotels located in highly desirable destination resort markets and key gateway cities. The Company's 31 high quality hotels contain over 10,000 rooms and are strategically positioned under either leading global brands or as unique boutique hotels/resorts in the lifestyle segment. For further information on the Company and its portfolio, please visit DiamondRock Hospitality Company's website at www.drhc.com.
This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as "believe," "expect," "intend," "project," "forecast," "plan" and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: national and local economic and business conditions, including the impact of COVID-19 on occupancy rates at the Company's hotels and the demand for hotel products and services; operating risks associated with the hotel business; risks associated with the level of the Company's indebtedness; relationships with property managers; the ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes in travel patterns, taxes and government regulations which influence or determine wages, prices, construction procedures and costs; and other risk factors contained in the Company's filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of the date of this release, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.
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SOURCE DiamondRock Hospitality Company