Diamondrock Hospitality Company · NASDAQ:DRH
Diamondrock Hospitality — Investor Presentation (November 2010)
12 slides from Diamondrock Hospitality's investor presentation, Nov 15, 2010
Slide 1: Investor Presentation November 2010
Investor Presentation November 2010
Slide 2: Investment Highlights
Investment Highlights 2 Early Stages of Lodging Recovery Quality High Growth Portfolio Thoughtful Asset Management Positioned for Acquisitions Best in Class Capital Structure
Slide 3: DiamondRock at a Glance
DiamondRock at a Glance Key Stats at 11/12/10: Hotels(2): 23 Rooms: 10,742 Share Price: $10.26 Shares Outstanding: 155 mm Market Capitalization: $1,586mm Net Debt: $721 mm Enterprise Value: $2,307 mm EV / 2010 EBITDA(3): 16.9x EV / 2010 EBITDA(4): 16.2x 3 Per the Company's full year guidance. Exclud
Slide 4: Portfolio Overview
(CHART) Portfolio Overview 4 Our portfolio is concentrated in Top 25 MSAs and destination resorts. Portfolio positioned for superior growth. Market Concentration (% of EBITDA) Brand Concentration (% of EBITDA) Note: Market and Brand Concentrations based on forecast 2010 hotel adjusted EBITDA, includ
Slide 5: Early Stages of Recovery in Lodging Fundamentals
Early Stages of Recovery in Lodging Fundamentals DRH's operating results exceed internal expectations for YTD 2010 DRH anticipates a multi-year recovery in lodging fundamentals: Business mix shifting to more profitable demand segments Constrained supply picture very favorable The Company's balance s
Slide 6: Frenchman's Reef Repositioning
Frenchman's Reef Repositioning 6 Key Attributes of DiamondRock's Plan: $45 million total cost Projected IRR > 20% Marriott Contribution New Resort Pool Destination Spa Upgraded Guestrooms Self Generation of Energy Increased Energy Efficiency Overall Enhancement of Guest Experience (CHART)
Slide 7: Acquisition Pipeline
Acquisition Pipeline 7 Increased volume and quality of investment opportunities Currently evaluating several transactions in Top 20 MSAs Significant investment capacity Expected year-end cash balance of $90 million Undrawn $200 million line of credit 13 hotels unencumbered by debt Off-Market Transac
Slide 8: 2010 Acquisitions
2010 Acquisitions 87 Allerton Hotel Chicago Distressed, off-market transaction Acquired senior loan at 13% discount Last dollar of investment at $137k/key Global brand repositioning opportunity if fee title obtained Collected over $2.2 million during ownership period Hilton Minneapolis 821 rooms; 77
Slide 9: 2010 Acquisitions
2010 Acquisitions 97 Renaissance Charleston Off-market acquisition sourced through Marriott relationship Desirable Historic District location $40 million total investment Major new demand generators (e.g. Boeing 787 Dreamliner assembly plant) Above 7% cap rate on forward NOI 13% RevPAR growth during
Slide 10: Capital Structure
Capital Structure Best in Class No debt maturities until the fourth quarter of 2014 $90 million cash balance at year end Undrawn $200 million credit facility 13 unencumbered hotels Closed new $200 million unsecured credit facility Inexpensive debt starting at 3.75% Flexible financial covenants 4-yea
Slide 11: DiamondRock Capital Structure - No Corporate Debt
DiamondRock Capital Structure - No Corporate Debt 11 Courtyard Midtown East (Oct. 2014)EBITDA: $7.6mm; Debt: $42.7mm at 8.81% Salt Lake City Marriott (Jan. 2015)EBITDA: $4.7mm; Debt: $32.1mm at 5.50% Los Angeles Airport Marriott (July 2015)EBITDA: $7.5mm; Debt: $82.6mm at 5.30% Worthington Renaissan
Slide 12: Safe Harbor
Safe Harbor Certain statements made during this presentation are forward- looking and are subject to risks and uncertainties. Many of these risks and uncertainties are discussed in the prospectus supplement and in the Company's filings with the Securities and Exchange Commission, all of which you sh
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