DiamondRock Hospitality Company (NYSE: DRH) announced that on August 29, 2014, it acquired the fee-simple condominium interest in the 282-room Hilton Garden Inn/Times Square Central in New York for a contractual purchase price of $127.2 million (or $451,000 per guestroom).
The hotel opened and welcomed its first hotel guest on September 1, 2014. The Company still expects the Hotel to generate approximately $5.0 million of adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") in 2014.
"The acquisition of this new, state-of-the-art hotel located in the heart of Times Square is a great addition to our portfolio," said Mark W. Brugger, President and Chief Executive Officer of DiamondRock Hospitality Company. "The hotel enjoys a prime location within Times Square that will benefit from tremendous demand from both business and leisure travelers. Business demand will come from companies nationwide as well as those located in the over 5 million square feet of office space just within one block of the hotel. Two of the prime office towers in the city are located on the same block, including the Bank of America Tower at One Bryant Park and the MetLife global headquarters tower at 1095 Avenue of the Americas. Leisure demand is robust for this location with Times Square remaining the most visited tourist attraction area in the world with more than 39 million visitors per year. We expect this hotel to be very successful and one of the highest RevPAR and highest profit margin hotels within our portfolio."
The hotel is located on 42nd Street between Avenue of the Americas and Broadway. It is steps from Broadway theaters and famed Bryant Park as well as within walking distance to iconic New York City attractions including Madison Square Garden, Rockefeller Center, Radio City Music Hall, Jacob Javits Convention Center, many museums, nightlife and shopping.
The Hotel is newly constructed and features floor to ceiling glass windows offering unparalleled views of Times Square and the New Year's Eve Ball Drop. The hotel is designed to have a boutique hotel feel with a contemporary lobby that conveys a modern experience for today's traveler. Within the hotel lobby is the hotel's onsite restaurant, The Garden Grille. The Hotel also features a 24-hour Pavilion Pantry® convenience mart located in the hotel lobby, which offers snacks, drinks, and sundries.
Hilton Garden Inn New York/Times Square Central offers stylish guestrooms in a variety of configurations to accommodate all guests, including king bed, queen bed, and dual double beds configurations. Each guestroom features extra-large 50-inch LCD HDTV, refrigerator, microwave, laptop size safe, MP3 compatible alarm clocks and large work desk with ergonomic chair.
The Hotel's additional amenities include a 24-hour self-service business center and a 24-hour state-of-the-art fitness facility. Meeting space includes a pre-set Boardroom with the latest presentation technology to capitalize on small group business.
The Hotel will be operated by Highgate Hotels, the single largest operator of hotels in New York City.
DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in top gateway markets and destination resort locations. The Company owns 27 premium quality hotels with over 11,000 rooms.
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