BETHESDA, Md., Dec. 23, 2004 - DiamondRock Hospitality Company ("DiamondRock") announced today that it has acquired the Hotel 5A, a boutique hotel property located in Midtown Manhattan. The 189-room hotel is conveniently situated near Fifth Avenue shopping and Bryant Park. The hotel was purchased for approximately $34.4 million, or $182 thousand per room, and will be reflagged as a Courtyard by Marriott in January. An affiliate of Marriott International (NYSE: MAR) will manage the property under a long-term agreement. "This acquisition represents a high quality asset in a premium Midtown Manhattan location. It is rare to find opportunities in locations like this that present such

Hotel 5A (formerly the Clarion Fifth Avenue) 3 EAST 40TH ST New York, NY

John Williams, president of DiamondRock, added: "DiamondRock will invest $4 million to completely renovate the property and convert it into a Courtyard. Marriott's reservation system generates high rated, unaccomodated reservations in Manhattan that will directly benefit this asset."

DiamondRock was formed in July 2004 and will elect to be a lodging real estate investment trust upon filing its first corporate tax return. More information about DiamondRock is available on its website: http://www.diamondrockhospitality.com.

This press release contains "forward-looking statements" within the meaning of federal securities law, including statements concerning business strategies and their intended results and similar statements concerning anticipated future events and expectations that are not historical facts.