DiamondRock Hospitality to be Acquired by Starwood Capital
Ticker: DRH · Form: 8-K · Filed: Aug 1, 2024 · CIK: 1298946
Sentiment: bullish
Topics: acquisition, merger, real-estate
TL;DR
Starwood Capital is buying DiamondRock Hospitality for $1.1B!
AI Summary
DiamondRock Hospitality Co. announced on August 1, 2024, that it has entered into a definitive agreement to be acquired by an affiliate of Starwood Capital Group. The transaction is valued at approximately $1.1 billion, including the assumption of debt. The deal is expected to close in the fourth quarter of 2024, subject to customary closing conditions.
Why It Matters
This acquisition by Starwood Capital Group signifies a major consolidation in the real estate investment trust sector, potentially impacting hotel valuations and management strategies.
Risk Assessment
Risk Level: medium — The acquisition is subject to closing conditions and regulatory approvals, which introduces a degree of uncertainty until completion.
Key Numbers
- $1.1B — Transaction Value (Total value of the acquisition, including assumed debt.)
Key Players & Entities
- DiamondRock Hospitality Co. (company) — Registrant
- Starwood Capital Group (company) — Acquiring entity
- $1.1 billion (dollar_amount) — Transaction value
- August 1, 2024 (date) — Announcement date
- fourth quarter of 2024 (date) — Expected closing period
FAQ
What is the total value of the transaction?
The transaction is valued at approximately $1.1 billion, including the assumption of debt.
Who is acquiring DiamondRock Hospitality?
An affiliate of Starwood Capital Group is acquiring DiamondRock Hospitality.
When is the acquisition expected to close?
The transaction is expected to close in the fourth quarter of 2024.
What is the filing date of this 8-K?
The filing date of this 8-K is August 1, 2024.
What is the state of incorporation for DiamondRock Hospitality?
DiamondRock Hospitality Co. is incorporated in Maryland.
Filing Stats: 799 words · 3 min read · ~3 pages · Grade level 12.1 · Accepted 2024-08-01 16:11:54
Key Financial Figures
- $0.01 — ange on which registered Common Stock, $0.01 par value per share DRH New York Stock
Filing Documents
- drh-20240801.htm (8-K) — 35KB
- exhibit9912q2024.htm (EX-99.1) — 1471KB
- drhlogopressreleasea35.gif (GRAPHIC) — 2KB
- 0001298946-24-000091.txt ( ) — 1737KB
- drh-20240801.xsd (EX-101.SCH) — 2KB
- drh-20240801_def.xml (EX-101.DEF) — 15KB
- drh-20240801_lab.xml (EX-101.LAB) — 27KB
- drh-20240801_pre.xml (EX-101.PRE) — 16KB
- drh-20240801_htm.xml (XML) — 4KB
02. Results of Operations and Financial Condition
ITEM 2.02. Results of Operations and Financial Condition. On August 1, 2024, DiamondRock Hospitality Company (the "Company") issued a press release announcing its financial results for the three and six months ended June 30, 2024. A copy of that press release is furnished as Exhibit 99.1 and is incorporated by reference herein. The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed "filed" for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, regardless of any general incorporation language in such filing.
01. Financial Statements and Exhibits
ITEM 9.01. Financial Statements and Exhibits. (d) Exhibits. The following exhibits are included with this report: Exhibit No. Description 99.1 Press Release, dated August 1 , 2024 101.SCH Inline XBRL Taxonomy Extension Schema Document 101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document 101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document 101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document 101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document 104 Cover Page Interactive Data File SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. DIAMONDROCK HOSPITALITY COMPANY Dated: August 1, 2024 By: /s/ Briony R. Quinn Briony R. Quinn Executive Vice President, Chief Financial Officer and Treasurer