DiamondRock Hospitality Company Completes Refinancing of Salt Lake City Marriott Downtown

DiamondRock Hospitality Company (NYSE: DRH) announced yesterday that it has refinanced its only material near-term debt obligation by closing on a $48 million mortgage loan secured by the Salt Lake City Marriott Downtown. 

“This new loan further bolsters DiamondRock’s balance sheet and provides financial flexibility during the current disruption in travel demand caused by COVID-19,” said Mark W. Brugger, President and Chief Executive Officer of DiamondRock Hospitality Company.

The loan proceeds were used to repay the existing $52.5 million mortgage loan secured by the Salt Lake City Marriott Downtown.  The new loan matures in January 2022 with an option to extend maturity to January 2023, subject to the satisfaction of certain conditions.  The new loan bears interest at LIBOR plus 325 basis points over a 100 basis points LIBOR floor.

The Company’s debt maturity schedule is now as follows:

Year

Debt at Maturity(1)

2020

$2.9 million

2021

None

2022

$45.3 million

2023(2)

$333.3 million

2024

$423.3 million

2025

$290.0 million

(1)

Does not reflect extension options

(2)

Includes revolving credit facility based on $149.0 million balance at June 30, 2020

The 510-room Salt Lake City Marriott Downtown is one of Salt Lake City’s premier hotels, having won AAA’s Four Diamond Award for more than 20 consecutive years. The property offers approximately 22,000 square feet of meeting space. The hotel is located directly across from the Salt Palace Convention Center and is connected to the Crossroads Plaza Mall, as well as being minutes from numerous other top attractions.

DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that owns a portfolio of 31 hotels.