Filling rooms.DiamondRock Hospitality Corp., a Bethesda, Md.-based real estate investment trust, purchased a portfolio of hotels last month that includes the 1,004-room Marriott Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. Airport. The Marriott Los Angels Airport is the largest hotel to trade hands so far this year, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Alan Reay, president of Costa Mesa-based Atlas Hospitality Group Inc., who was not involved in the sale. "What this is showing is just a tremendous amount of activity in the hotel sales market," Reay said. "We have never seen this many large hotels trade hands in such a short amount of time in Southern California." Blackacre Capital Management, a New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of real estate investment firm, sold the portfolio of four hotels containing 2,330 rooms to DiamondRock for $315 million. As part of the deal, DiamondRock receives more than $10 million in cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. for capital improvements. The company plans to spend another $5 million to renovate the properties. Neither Blackacre nor DiamondRock broke out individual sales prices for the hotels. Assuming all rooms are worth the same, DiamondRock is paying about $136 million for the Marriott Los Angeles Airport, Reay said. DiamondRock is buying into an airport-area market on the upswing. In May, average daily room rates increased 10 percent year-over-year to $83.25, while average occupancy held steady at a little more than 80 percent, according to PKF PKF Peace Keeping Force PKF Pannell Kerr Foster (accounting firm) PKF Park Falls, Wisconsin (Airport Code) Consulting, which tracks hotel trends. Besides the Marriott Los Angeles Airport, the portfolio contains the Renaissance Worthington in Fort Worth, Texas Fort Worth is the fifth-largest city in the state of Texas, 18th-largest city in the United States[1], and voted one of "America’s Most Livable Communities. , the Marriott Atlanta Alpharetta in Alpharetta, Ga., and the Frenchman's Reef & Morning Star Resort in the U.S. Virgin Islands. The hotels are expected to produce $36.2 million of earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
The Marriott Los Angeles Airport is the second L.A.-area hotel acquisition by DiamondRock, which also owns the Torrance Marriott. Staff reporter Andy Fixmer can be reached by phone at (323) 549-5225, ext. 263, or by e-mail at afixmer@labusinessjournal.com. |
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