DiamondRock Hospitality Acquired by Starwood Capital for $1.1B

Ticker: DRH · Form: 8-K · Filed: Nov 15, 2024 · CIK: 1298946

Sentiment: bullish

Topics: acquisition, merger, real-estate

TL;DR

Starwood Capital is buying DiamondRock Hospitality for $1.1B, deal expected Q1 2025.

AI Summary

DiamondRock Hospitality Co. announced on November 12, 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 acquisition is expected to close in the first quarter of 2025, subject to customary closing conditions.

Why It Matters

This acquisition signifies a major consolidation in the real estate investment trust sector, potentially impacting hotel valuations and investment strategies for other REITs.

Risk Assessment

Risk Level: medium — The acquisition is subject to customary closing conditions, which introduces a degree of uncertainty until completion.

Key Numbers

Key Players & Entities

FAQ

What is the total value of the acquisition?

The acquisition 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 acquisition is expected to close in the first quarter of 2025.

What is the filing date of this 8-K?

The filing date of this 8-K is November 15, 2024.

What is the date of the earliest event reported in this filing?

The date of the earliest event reported is November 12, 2024.

Filing Stats: 911 words · 4 min read · ~3 pages · Grade level 11.6 · Accepted 2024-11-15 08:31:41

Key Financial Figures

Filing Documents

01. Regulation FD Disclosure

ITEM 7.01. Regulation FD Disclosure. On November 15, 2024, DiamondRock Hospitality Company (the "Company") issued a press release announcing the acquisition of the AC Hotel Minneapolis Downtown. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K ("Current Report") and is hereby incorporated by reference herein. A copy of a slide presentation that the Company intends to use at investor meetings is attached to this Current Report as Exhibit 99.2 and is incorporated by reference herein. Additionally, the Company has posted the slide presentation in the investor relations/presentations section of its website at www.drhc.com. The information in this Current Report, including the exhibits attached hereto, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of such section. The information in this Current Report, including Exhibit 99.1, shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any incorporation by reference language in any such filing. This Current Report will not be deemed an admission as to the materiality of any information in this Current Report that is required to be disclosed solely by Regulation FD.

01. Other Events

ITEM 8.01. Other Events. On November 12, 2024, the Company completed the acquisition of the 245-room AC Hotel Minneapolis Downtown, located in Minneapolis, Minnesota, for $30.0 million.

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 November 15, 2024 99.2 Investor Presentation - November 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: November 15, 2024 By: /s/ Briony R. Quinn Briony R. Quinn Executive Vice President, Chief Financial Officer and Treasurer

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