DiamondRock’s $1.5B refi will pay off 2025 maturities

BETHESDA, Maryland —DiamondRock Hospitality Company has successfully refinanced, upsized, and extended the maturities under its senior unsecured credit facility. The REIT entered into an amendment and restatement of its existing $1.2 billion facility, increasing the size by $300 to $1.5 billion and extending the company’s maturity schedule.

Bethesda, Maryland-based DiamondRock will use the incremental $300 million of proceeds under the credit facility to repay three mortgage loans that matured or will mature in 2025. 

The mortgage loans secured by the Worthington Renaissance Fort Worth Hotel and the Hotel Clio, which together had a principal balance of approximately $125 million, were repaid on their respective maturity dates in May 2025 and July 2025, before the closing of the credit facility. The company also intends to prepay the $166.6 million mortgage loan secured by the Westin Boston Seaport District in September 2025. 

Following this repayment, the REIT says it will have no debt maturities until January 2028 and that its portfolio will be fully unencumbered by secured debt.

“We greatly appreciate the continued support of our lending partners through the upsizing and extension of our credit facility,” Briony Quinn, executive vice president, CFO and Treasurer of DiamondRock, said in a news release. “Maintaining low leverage and no debt maturities until 2028 increases our financial flexibility and positions the company to take advantage of internal and external capital allocation opportunities over the next several years.”

The credit facility is comprised of a $400 million revolving credit facility maturing in January 2031, inclusive of two six-month extension options, a $500 million term loan maturing in January 2029, inclusive of two six-month extension options, a $300 million term loan maturing in January 2030 and a $300 million term loan maturing in January 2030, inclusive of two six-month extension options.