BETHESDA, MD-DiamondRock Hospitality, a REIT that has shown it can recycle capital in this economic cycle with the best of them, is now reaping the fruit of its past sales. It has entered into an agreement with a Blackstone affiliate to purchase a four-asset hotel portfolio for $495 million, or $339,000 per key. The hotels are the Hilton Boston; the Westin Washington DC; the Westin San Diego; and the Hilton Burlington.

As part of this off-market deal, Blackstone is taking a $75-million stake in the REIT, according to Mark Brugger, CEO of DiamondRock. The driver of the deal, however, was not necessarily just a desire to acquire these four assets, although as he notes, the four properties have higher RevPAR and EBITDA margins than the average property in DiamondRock’s existing portfolio. “They wanted to make a strategic investment in DiamondRock and we wanted to build on our relationship with them, so we tried to find a mutually beneficial transaction that would accomplish that,” he tells

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