DiamondRock Hospitality Co.
), a real estate investment trust (REIT), recently amended its
$200 million senior unsecured credit facility which will enable
the company to reduce borrowing cost and extend its debt
Scheduled to mature in January 2018, the amended facility has
an accordion feature that will enable DiamondRock Hospitality to
further increase its borrowing capacity to $400 million. The new
facility bears interest ranging from 175 to 275 basis points over
As of September 7, 2012, the company had $21.6 million of
unrestricted cash on hand and approximately $1.0 billion of total
debt. Subsequent to the end of third quarter 2012, the company
used the proceeds from the sale of the Westin Atlanta North to
repay $35 million on the credit facility. Presently the company
has $105 million in outstanding borrowings under the
DiamondRock Hospitality is an owner of premium hotel
properties. The company acquires and invests in upscale hotels
under the Hilton, Marriot and Westin brands across the US. The
company reported adjusted FFO (funds from operations) of 18 cents
per share in the third quarter 2012, missing the Zacks Consensus
estimate by a penny. Currently, the company owns 27 premium
hotels with approximately 11,600 rooms along with a senior
mortgage loan on a premium hotel.
DiamondRock Hospitality currently retains a Zacks #4 Rank,
which translates into a short-term Sell rating. We have a
long-term Underperform recommendation on the stock. One of its
Ashford Hospitality Trust Inc
) holds a Zacks #3 Rank, which translates into a short term Hold
from operations, a widely used metric to gauge the
performance of REITs, is obtained after adding depreciation and
amortization and other non-cash expenses to net income.
ASHFORD HOSPTLY (AHT): Free Stock Analysis
DIAMONDROCK HOS (DRH): Free Stock Analysis
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