DiamondRock Hospitality Company Provides Update on Capital Initiatives
(Logo: http://www.newscom.com/cgi-bin/prnh/20040708/DCTH028 )
-- CourtyardManhattan /Midtown East Financing: OnSeptember 11, 2009 , the Company refinanced the debt that was secured by a mortgage on its Courtyard Manhattan/Midtown East hotel with new$43.0 million secured debt issued byMassachusetts Mutual Life Insurance Company maturing onOctober 1, 2014 . The existing$40.5 million of debt was scheduled to mature onDecember 11, 2009 . -- Controlled Equity Program Update and Revised Share Guidance: During the third quarter, the Company raised gross proceeds of$57.3 million through the sale of 8.1 million shares of common stock under our$75 million controlled equity offering program (average sale price of$7.05 ). Including all shares sold under the program, the Company had approximately 116.2 million shares outstanding as ofSeptember 11, 2009 , which was the last day of its third fiscal quarter. Based solely on stock sales through the end of its third fiscal quarter, the Company expects to have approximately 106.2 million fully-diluted weighted average shares of its common stock for the year endedDecember 31, 2009 . -- Griffin Gate Marriott Debt Maturity: The Company provided notice to the servicer of the$28 million Griffin Gate Marriott mortgage debt that the Company intends to repay the loan during the fourth quarter of 2009. The mortgage debt matures onJanuary 1, 2010 and is prepayable without penalty commencingOctober 1, 2009 . After repayment of the mortgage debt, the hotel will be unencumbered. -- Bethesda Marriott Suites Debt: The Company expects to repay the$5 million Bethesda Marriott Suites mortgage debt during the fourth quarter of 2009. The mortgage debt matures inJuly 2010 and is currently prepayable without penalty. After repayment of the mortgage debt, the hotel will be unencumbered.
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 "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "should," "will," "continue" 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 that will affect occupancy rates at our hotels and the demand for hotel products and services; operating risks associated with the hotel business; risks associated with the level of our indebtedness and our ability to meet covenants in our debt agreements; relationships with property managers; our ability to maintain our properties in a first-class manner, including meeting capital expenditure requirements; our ability to complete planned renovation on budget; our 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; our ability to complete acquisitions; our ability to raise equity capital; the performance of acquired properties after they are acquired; necessary capital expenditures on the acquired properties; and our ability to continue to satisfy complex rules in order for us to qualify as a REIT for federal income tax purposes; and other risks and uncertainties associated with our business described from time to time in our filings with the
SOURCE
Christopher King, +1-240-744-1150, info@drhc.com