To close the deal, New York-based Lehman Brothers provided a 10-year, $59 million loan at 5.68% interest. Under terms of the financing deal, Diamond Rock will pay only the interest for the first five years of the loan. Diamond Rock plans an estimated $12-million renovation of the property, according to Chris King, the company's vice president of finance.
Diamond Rock owns 15 hotels with 6,119 rooms in 10 states and one US territory. The company paid about $144,033 per room for the Orlando Airport Marriott. For 2007, Diamond rock projects estimated net income of $1.83 million; income taxes of $162,338; depreciation expense of $2.4 million; and interest expense of $4.51 million. Estimated total EBITDA is $8.91 million.
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