Bethesda, Maryland-based real estate investment trust DiamondRock Hospitality Company completed a refinancing and extension of its maturities under its senior unsecured credit facility that will increase the credit facility by $300 million to a total of $1.5 billion.
DiamondRock will use the additional $300 million from the refinancing to repay three mortgage loans that matured or will mature this year.
The mortgage loans secured by the Worthington Renaissance Fort Worth Hotel and the Hotel Clio were repaid in May 2025 and July 2025, respectively, for a principal balance totaling about $125 million, prior to the closing of the credit facility. DiamondRock plans to prepay its $166.6 million mortgage loan on the Westin Boston Seaport District in September.
After the repayment of the Boston property, DiamondRock will have no debt maturities until January 2028, and its portfolio will be free of secured debt.
"We greatly appreciate the continued support of our lending partners through the upsizing and extension of our credit facility. 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," Briony Quinn, DiamondRock's executive vice president, chief financial officer and treasurer, said in a news release.
The REIT's credit facility is comprised of a $400 million revolving credit facility maturing in January 2031 with two, six-month extension options, a $500 million term loan maturing in January 2029 with two, six-month extension options, a $300 million term loan maturing in January 2030 and a $300 million term loan maturing in January 2030 with two, six-month extension options.