DiamondRock Completes Acquisition Of The Westin Beach Resort & Spa, Fort Lauderdale
"We are pleased to add
The acquisition of the Hotel achieves several of the Company's strategic objectives including the further diversification of its brand and manager representation. The Company plans to implement its asset management best practices to drive further upside and additional synergies at the Hotel following acquisition. As previously stated, the Hotel is in excellent physical condition and the Company does not anticipate any major capital improvements in the near-term.
"We are excited to create a new partnership with
The Company expects the Hotel to contribute approximately
The Company funded the acquisition with a combination of existing corporate cash and short-term borrowings from its corporate credit facility, which the Company intends to repay upon closing on the previously announced sale of the
About the Company
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," "anticipate," "position," 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 those risks and uncertainties associated with our business described from time to time in our filings with the
Reconciliation of Forecasted Hotel Net Income to Forecasted Hotel EBITDA |
|||||||
(Unaudited, in millions) |
|||||||
2015 Forecast |
2015 Forecast |
2014 Period of |
|||||
Estimated Net Income |
$ 8.7 |
$ 9.2 |
$ 0.2 |
||||
Depreciation Expense |
3.2 |
3.2 |
0.3 |
||||
Estimated EBITDA |
$ 11.9 |
$ 12.4 |
$ 0.5 |
This press release includes certain non-GAAP financial measures as defined under
The Company has presented forecasted hotel EBITDA because it believes this measure provide investors and analysts with an understanding of the hotel-level operating performance. This non-GAAP measure does not represent amounts available for management's discretionary use, because of needed capital replacement or expansion, debt service obligations or other commitments and uncertainties, nor are they indicative of funds available to fund the Company's cash needs, including its ability to make distributions.
The Company's presentation of the hotel's forecasted EBITDA should not be considered as an alternative to net income (computed in accordance with GAAP) as an indicator of the hotel's financial performance. The table above is a reconciliation of the hotel's forecasted EBITDA to net income in accordance with GAAP.
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SOURCE
Sean Mahoney, (240) 744-1150