Diamondrock Hospitality Company · NASDAQ:DRH
Diamondrock Hospitality — Investor Presentation (September 2025)
19 slides from Diamondrock Hospitality's investor presentation, Sep 8, 2025
Slide 1: Investor Presentation September 2025
INVESTOR PRESENTATION SEPTEMBER 2025
Slide 2: Forward Looking Statements & Use of Non-GAAP Financial Measures
FORWARD LOOKING STATEMENTS & USE OF NON-GAAP FINANCIAL MEASURES 2 FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as
Slide 3: DiamondRock at a Glance
DIAMONDROCK AT A GLANCE DIVERSIFIED PROPERTIES 9,595 36 26 ROOMS GEOGRAPHIC MARKETS PROPERTIES MARKET % OF 2024 EBITDA Boston 13.3% Chicago 12.5% New York City 8.2% Florida Keys 6.8% Vail 5.9% Fort Lauderdale 5.6% Fort Worth 4.9% Salt Lake City 3.9% Denver 3.9% Sedona 3.8% Destin 3.7% Sausalito 3.4%
Slide 4: Why DiamondRock?
WHY DIAMONDROCK? “Our mission is to create outstanding long-term value for our shareholders, rewarding careers for our team members, positive experiences for our guests, and a sustainable contribution to our community.” PRUDENT CAPITAL ALLOCATION ✓ Repurchased $55MM common shares in 2024/YTD ‘25 at
Slide 5: FCF Per Share Growth Outperformance Should Drive Total Shareholder Returns
5 • 2nd Highest Estimated FCF Per Share Growth Over The Medium and Long Term vs. Full-Service Peers • Total Shareholder Return Ranking vs. Peers Has Lagged FCF Per Share Growth Outperformance • ~18% Lower CapEx Per Key Spent vs. Peers Over Trailing 10 Years • Optimizing Renovation Cycles Across Port
Slide 6: Capital Recycling Value Creation Example
CAPITAL RECYCLING VALUE CREATION EXAMPLE POTENTIAL DISPOSITION CHARACTERISTICS POTENTIAL ACQUISITION CHARACTERISTICS POTENTIAL NET PORTFOLIO BENEFITS • Lower FCF yielding asset • Minimal return on incremental CapEx • Unfavorable ground lease • Higher cost operating environment • Deteriorating market
Slide 7: Well-Positioned: Leisure as a Long-Term Secular Driver
24 Hotels 4,348 Keys 56% of Portfolio by Revenue 13 Independent Hotels 100% Unencumbered by Management WELL-POSITIONED: LEISURE AS A LONG-TERM SECULAR DRIVER LUXURY & LIFESTYLE RESORTS URBAN LIFESTYLE HOTELS SAUSALITO, CA L’AUBERGE DE SEDONA THE LANDING RESORT AND SPA SEDONA, AZ SONOMA, CA HAVANA CA
Slide 8: Resilience of Leisure Travel
RESILIENCE OF LEISURE TRAVEL 8 Per CBRE, population growth in heaviest traveling segments (Millennials & Baby Boomers) with more flexibility, money, and desire for more experiences should lead to more leisure travel 60.8 62.3 71.5 90.4 Family Formation/Millenials (25-39) Active Retirement/Baby Boome
Slide 9: Well-Positioned: Group and Urban Demand Recovery
WELL-POSITIONED: GROUP AND URBAN DEMAND RECOVERY 9 COURTYARD MANHATTAN/FIFTH AVENUE COURTYARD MANHATTAN/MIDTOWN EASTHILTON GARDEN TIMES SQUARE CENTRAL 5 Hotels 1,214 Keys 10% of Portfolio by Revenue 100% Unencumbered by Management 5 Hotels 3,443 Keys 31% of Portfolio by Revenue Strong Convention Mar
Slide 10: Q2 2025 Operational Results Key Takeaways
Q2 2025 OPERATIONAL RESULTS KEY TAKEAWAYS Hotel Champlain Burlington, Curio Collection By Hilton • Refinanced, upsized, and extended maturities under senior unsecured credit facility • $1.5B credit facility, up from $1.2B • $400MM undrawn revolver and three term loans maturing 2028-2030 • Term loans
Slide 11: 2025 Updated Outlook Assumptions
2025 UPDATED OUTLOOK ASSUMPTIONS CURRENT Corporate Expenses $24MM to $25MM, unchanged Interest Expense $63MM to $64MM, +$2.5MM with upsized credit facility Pre-paid Westin Boston Seaport District $166.2MM mortgage loan on September 5 Weighted Average Shares 209MM, decreased from 210.3MM Q3 RevPAR Ch
Slide 12: Balance Sheet
BALANCE SHEET 12 High Leverage Low Leverage RELATIVELY LOW LEVERAGE & NO NEAR-TERM MATURITIES • Amended revolving credit facility in July 2025 • Upsized to $1.5B, from $1.2B • Earliest debt maturity, prior to extensions, is January 2028 • All DRH debt is unsecured and prepayable at anytime without p
Slide 13: Most Liquid Portfolio Amongst Peers
MOST LIQUID PORTFOLIO AMONGST PEERS 13 BENEFITS OF SHORT-TERM AGREEMENTS ■ Terminable at Will ■ Enhanced Asset Liquidity ■ Superior Control over Costs, Cash and Capital ■ 50 to 100 bp Better Exit Cap Rate ■ Enhanced Flexibility to Optimize Performance VALUATION PREMIUM: UNENCUMBERED VS. ENCUMBERED H
Slide 14: ROI Project: The Cliffs at L'Auberge de Sedona
ROI PROJECT: THE CLIFFS AT L’AUBERGE DE SEDONA 14 INTEGRATION OF ORCHARDS INN INTO L’AUBERGE DE SEDONA • New cliff side pool, bar, and event space with some of the best views of Sedona’s red rocks • Significant rate opportunity • Total Cost: $25MM • Stabilized Yield on Cost: 10% • Est. Completion: F
Slide 15: The Cliffs at L'Auberge de Sedona – Progress Photos
THE CLIFFS AT L’AUBERGE DE SEDONA – PROGRESS PHOTOS 15
Slide 16: Value Creation Opportunities & Potential Long-Term ROI Projects
VALUE CREATION OPPORTUNITIES & POTENTIAL LONG-TERM ROI PROJECTS Courtyard Denver Downtown The Westin Boston Seaport District Exploring Adding More Waterfront Guest Rooms Franchise Expiration in 2027 Potential Upbranding & Expansion Franchise Expiration in 2026 Value Creation Opportunity Currently 37
Slide 17: Negligible New Supply Impact for Several Years
NEGLIGIBLE NEW SUPPLY IMPACT FOR SEVERAL YEARS 17 v v no supply growth 1-2% growth 4-6% growth >10% growth v Sonoma Lake TahoeSausalito San Francisco Huntington Beach San Diego Phoenix Sedona (2) Salt Lake City Paradise Valley/Yellowstone Minneapolis Chicago (2) Atlanta Destin (2) New Orleans FL Key
Slide 18: Corporate Responsibility Accomplishments
CORPORATE RESPONSIBILITY ACCOMPLISHMENTS GRESB ANNUAL RESULTS VS PEER GROUP 2017 2018 2019 2020 2021 2022 2023 2024 DRH GRESB Score 53 75 81 84 86 82 85 86 Peer Score Average 57 58 69 69 72 65 77 80 Index to Peer Score Avg 93% 129% 117% 122% 119% 126% 110% 108% 2024 DRH GRESB SCORE & RECOGNITION 5TH
Slide 19: DiamondRock Hospitality
DIAMONDROCK HOSPITALITY
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