DiamondRock to Acquire Hotel in Times Square for $112.5M to $135M

DiamondRock Hospitality Company DRH today announced that it has entered into a purchase and sale agreement to acquire, upon completion, a hotel property under development on West 42nd Street in Times Square, New York City. Upon completion by the third-party developer, the Hotel is expected to contain approximately 250 to 300 guest rooms. The contractual purchase price will range from approximately $112.5 million to $135 million, depending upon the final number of guest rooms, or approximately $450,000 per guest room. The number of guestrooms could be increased to approximately 400 guest rooms if certain required permits, approvals and consents are obtained, which would result in the contractual purchase price increasing to approximately $178 million, or $445,000 per guest room. The contract is for a fixed-price and DiamondRock is not assuming any construction risk, including not assuming the risk of construction cost overruns.