DiamondRock Hospitality Co. closed on the previously announced $170.4 million loan secured by a mortgage on the Lexington Hotel New York. The loan bears interest at a floating rate of one-month LIBOR plus 300 basis points and has an initial term of three years with two one-year extension options subject to the satisfaction of certain terms and conditions and payment of an extension fee.

"This loan further strengthens DiamondRock's industry-leading balance sheet and positions it for growth,” DiamondRock CEO Mark W. Brugger said in a statement. “The $170 million in cash proceeds from this loan will be utilized to repay all outstanding balances on the company's corporate revolver and will bolster the company's cash position.”

The financing was led by Citibank N.A. who acted as the lead arranger, book running manager and administrative agent. Also participating in the financing are the Prudential Mortgage Capital Company as co-documentation agent and BBVA Compass as syndication agent.