Diamondrock Hospitality Company · NASDAQ:DRH
Diamondrock Hospitality — 2008 FBR Capital Markets Fall Investor Conference
12 slides from Diamondrock Hospitality's conference presentation, Dec 2, 2008
Slide 1: 2008 FBR Capital Markets Fall Investor Conference
2008 FBR Capital Markets Fall Investor Conference December 2, 2008
Slide 2: DiamondRock at a Glance
2 DiamondRock at a Glance(1) Investment Highlights: • Strong Balance Sheet • Experienced Management Team • Quality Portfolio Concentrated in Key Gateway Cities • Marriott Sourcing Relationship • Aggressive Asset Management Portfolio Statistics: # of Hotels: 20 # of Rooms: 9,586 Occupancy: 71.5% Aver
Slide 3: Company History
3 Company History • Formed in mid-2004 with $210 million private placement of common stock, including $30 million investment by Marriott International. – Acquired 7 hotels between October 2004 and January 2005. • Raised over $310 million in May 2005 Initial Public Offering. – Acquired 8 hotels betwe
Slide 4: Experienced Management Team
4 Experienced Management Team Mark Brugger, Chief Executive Officer – A founder of DiamondRock Hospitality – Over 15 years of real estate experience – Extensive lodging and finance experience at Marriott – Other experience in land development and investment sales John Williams, President and Chief O
Slide 5: Portfolio Overview
5 Portfolio Overview DiamondRock owns a diversified portfolio of premium branded hotels concentrated in key gateway cities and destination resorts. Market Concentration (% of EBITDA) Brand Concentration (% of EBITDA)
Slide 6: 2009 Outlook
7 2009 Outlook • Macro-Environment – Economy in recession impacting demand – Supply growth at long-term average (after years of below average supply growth) – Declining RevPAR (Marriott “at best” -3%) • DiamondRock Group Booking Pace +5.6% (as of Q3 2008) • Westin Boston – Double the meeting space –
Slide 7: RevPAR: Historical Perspective
8 RevPAR: Historical Perspective DiamondRock has not provided specific 2009 guidance. To provide some historical perspective, presented below are RevPAR and GDP figures during the previous two downturns. Note: DRH Portfolio RevPAR represents properties reporting data to Smith Travel at the time of m
Slide 8: Storylines for 2010 and beyond
9 Storylines for 2010 and beyond • Distressed Assets Create Growth Opportunities – “New” credit standards create refinancing risk for overleveraged hotels – Developers have difficulty obtaining permanent financing due to lack of cash flow in poor operating environment • Limited supply expected – Man
Slide 9: DiamondRock's Unsecured Properties
10 DiamondRock’s Unsecured Properties(1) Westin Boston Waterfront ADR: $202.76 Occupancy: 69.1% RevPAR: $140.03 EBITDA: $21.0mm Torrance Marriott ADR: $123.60 Occupancy: 78.6% RevPAR: $97.17 EBITDA: $6.9mm Westin Atlanta ADR: $141.84 Occupancy: 58.7% RevPAR: $83.26 EBITDA: $4.8mm Marriott Alpharetta
Slide 10: Balance Sheet
11 Balance Sheet(1) Balance Sheet Highlights • Limited Near Term Maturities • Flexible Capital Structure – No Preferred Equity or OP units • Eight unencumbered assets Leverage Statistics: Net Debt / Asset Value: 42% Net Debt / EBITDA: 4.9x Fixed Charge Coverage: 2.9x Fixed / Floating Ratio: 91% / 9%
Slide 11: Questions?
12 Questions?
Slide 12: Safe Harbor
13 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 yo
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