DiamondRock's backing is not too shabby either. The new concernboasts a strategic relationship with Marriott International Inc.,which now owns $30 million in shares of the company. About 40investors participated in the initial equity raise.

"We believe that the strength of our management team, the recentturnaround in the lodging markets, and our strategic relationshipwith Marriott provide all the essential ingredients to rapidly growour company," says DiamondRock president and COO John L. Williams.Williams is right on the money with regard to the turnaround in thehotel industry. "Lenders have opened their coffers to hotels,giving hospitality investors the opportunity to benefit fromhistorically low interest rates," Marcus & Millichap reports inits Spring 2004 Hospitality Research Report. "This will aid in thehospitality market's recovery, as fundamentals are expected to makesubstantial gains in the next 24 months."