DiamondRock Hospitality Announces Tax Treatment of Its 2006 Dividends

BETHESDA, Md., Jan. 29 /PRNewswire-FirstCall/ -- DiamondRock Hospitality Company ("DiamondRock") (NYSE: DRH), a real estate investment trust, announced today the following tax treatment of its 2006 distributions.

    

    Common Shares (CUSIP Numbers: 252784301, 252784103, 252784202, U25268100)

                                                                   2006 Non-
                                               2006 Taxable         taxable
                                                 Dividends         Dividends
                                            Taxable    Taxable
                                               as         as
                              Total Cash    Ordinary  Qualified    Return of
                  Payable    Distribution    Income    Dividend     Capital
    Record Date    Date       per Share    per Share  per Share    per Share

      12/30/05    1/17/06     $0.081877    $0.067497  $0.014380    $0.000000
       3/24/06    4/11/06     $0.180000    $0.148388  $0.031612    $0.000000
       6/16/06    6/22/06     $0.180000    $0.148388  $0.031612    $0.000000
        9/8/06    9/22/06     $0.180000    $0.148388  $0.031612    $0.000000
      12/30/06     1/4/07     $0.062644    $0.051642  $0.011002    $0.000000

A total of 34.8023% (or $0.062644 per share) of the distributions paid on January 4, 2007 to shareholders of record on December 21, 2006 are considered 2006 distributions for federal income tax purposes. The balance of the January 4, 2007 distribution (65.1977% or $0.117356 per share) will be considered a 2007 distribution and will be reported in a manner to be determined with respect to the 2007 tax year. A total of 47.4748% (or $0.081877 per share) of the distributions paid on January 17, 2006 to shareholders of record on December 30, 2005 are considered 2006 distributions for federal income tax purposes. The balance of the January 17, 2006 distribution (52.5352% or $0.090623 per share) was considered a 2005 distribution for federal income tax purposes. Shareholders are encouraged to consult with their personal tax advisors as to their specific tax treatment of DiamondRock distributions.

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. Upon completion of the pending acquisition of the Westin Boston Waterfront Hotel, DiamondRock will own 21 hotels with almost 10,000 rooms. The Company has a strategic acquisition sourcing relationship with Marriott International. For further information, please visit DiamondRock's website at http://www.drhc.com.

SOURCE DiamondRock Hospitality Company

CONTACT: Mark Brugger of DiamondRock Hospitality Company,
+1-240-744-1150, info@drhc.com/
Web site: http://www.drhc.com /
(DRH)