DiamondRock acquires hotel at base of Golden Gate Bridge

|About: DiamondRock Hospitality Com... (DRH)|By:, SA News Editor

DiamondRock Hospitality (NYSE:DRH) acquires Cavallo Point, the Lodge at the Golden Gate, in Sausalito, CA.

The acquisition represents a 12.8x multiple on trailing twelve-month EBITDA.

The hotel will be DiamondRock's second-highest RevPAR property at $306 and highest total RevPAR hotel at $809.

The company issued 796,684 OP units in connection with the transaction at $11.76 per unit. It also entered into a new five-year $50M unsecured term loan for purposes of maintaining qualified non-recourse debt associated with the property.

Term loan's interest rate is based on a pricing grid of 140-220 basis points over LIBOR; currently the interest rate is at 145 bp over LIBOR.

Previously: DiamondRock Hospitality beats by $0.01, misses on revenue (Nov. 5)

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