DiamondRock Announces that It Has Sold the Springhill Suites Atlanta Buckhead

BETHESDA, Md., Dec 21, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- DiamondRock Hospitality Company ("DiamondRock") (NYSE: DRH) today announced that it has sold the SpringHill Suites Atlanta Buckhead to a private equity firm for a purchase price of $36,000,000. The purchase price for the 220-room hotel represents a capitalization rate of 5.5% or 15.9 times multiple on trailing 13-period Net Operating Income and EBITDA, respectively.

(Logo: http://www.newscom.com/cgi-bin/prnh/20040708/DCTH028 )

William W. McCarten, Chairman and Chief Executive Officer, stated: "We are pleased with the sale of this non-core asset, which had the lowest RevPAR of any hotel in our portfolio. The pricing was remarkably strong."

Hodges Ward Elliott, Inc. advised DiamondRock on the sale of the hotel.

About DiamondRock Hospitality Company

DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner and acquirer of premium hotel properties. DiamondRock owns 20 hotels with 9,600 rooms. For further information, please visit DiamondRock's website at http://www.drhc.com.

                Reconciliation of Net Income to
                   Trailing 13-Period EBITDA
                                                 T-13 Periods
    Estimated Net Income                          $1,020,000
    Income Taxes                                      50,000
    Depreciation Expense                           1,200,000
    Interest Expense                                       0

    Estimated EBITDA                              $2,270,000

SOURCE DiamondRock Hospitality Company

http://www.drhc.com