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Diamondrock Hospitality Pays Off $48M Mortgage Loan

Diamondrock Hospitality Co. DRH, the Bethesda, MD-based hotel real estate investment trust (“REIT”) announced the full repayment of the mortgage loan secured by Courtyard Manhattan Fifth Avenue. Paying off this mortgage loan is in sync with the company’s multi-year strategy to take into consideration the near term maturities as well as to reduce the cost of borrowing.

Notably, the mortgage loan included outstanding principal balance of $48.1 million with a fixed-rate rate of interest of 6.48%. Diamondrock Hospitality paid off the loan with the proceeds accrued from the $100 million senior unsecured term loan that the company had announced earlier.

DiamondRock Hospitality owns, acquires and invests in upper upscale and upscale hotel properties located mainly in North America. Also, the company selectively invests in premium limited-service and extended-stay hotel properties in urban locations. Notably, by paying off the loan, the company is anticipated to save around $2 million in annual interest expense and this is likely to reduce the weighted average rate of interest of the company to 3.8%.

Currently, Diamondrock Hospitality has a Zacks Rank #3 (Hold).

Better-ranked stocks in the REIT space include Brookfield Canada Office Properties BOXC, Whitestone REIT WSR and Gaming and Leisure Properties, Inc GLPI. While Brookfield Canada Office Properties sports a Zacks Rank #1 (Strong Buy), both Whitestone REIT and Gaming and Leisure Properties carry a Zacks Rank #2 (Buy).

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DIAMONDROCK HOS (DRH): Free Stock Analysis Report
 
GAMING AND LEIS (GLPI): Free Stock Analysis Report
 
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