The 189-room hotel, which traded for $182,000 per room, islocated near Fifth Avenue and Bryant Park. It will be reflagged asa Courtyard by Marriott in January and a Marriot affiliate willmanage the property under a long-term agreement.

"It is rare to find opportunities in locations like this thatpresent such promising economic potential," says Bill McCarten,chairman and chief executive officer of DiamondRock. John Williams,president of DiamondRock, notes that "Marriott's reservation systemgenerates high rated, unaccomodated reservations in Manhattan thatwill directly benefit this asset."

Just under a month ago, DiamondRock acquired the 307-roomCourtyard by Marriott Midtown East, located on Third Avenue.DiamondRock acquired the hotel through an assignment of MarriottInternational's contractual right to purchase the property. Thehotel was purchased for a capitalization rate of approximately 8.5%on the forecasted 2004 income.