Diamondrock Hospitality Company · NASDAQ:DRH
Diamondrock Hospitality — Investor Day (January 2019)
86 slides from Diamondrock Hospitality's investor day presentation, Jan 31, 2019
Slide 1: Investor Day 2019
INVESTOR DAY 2019 Vail Marriott Mountain Resort January 31st, 2019 | Vail Marriott
Slide 2: DRH Evolution Since Prior Investor Day
DRH Evolution Since Prior Investor Day DRH Portfolio Evolution 2013 Investor Day 2019 Investor Day Increase / (Decrease) RevPAR $137.24 $187.13 36% AFFO Per Share $0.73 $1.01 38% Net Debt 11/ EBITDA Hotels 4.9x 3.5x 28% Better Resorts (% of Portfolio) 14% 32% 100%+ Short-Term/Terminable Management A
Slide 3: DRH Leadership Team: 100+ Years of Experience
DRH Leadership Team: 100+ Years of Experience MARK W. BRUGGER JAY JOHNSON THOMAS HEALY PRESIDENT, CHIEF EXECUTIVE EXECUTIVE VICE PRESIDENT AND EXECUTIVE VICE PRESIDENT AND CHIEF OFFICER AND DIRECTOR CHIEF FINANCIAL OFFICER OPERATING OFFICER WILLIAM J. TENNIS TROY FURBAY BRIONY R. QUINN EXECUTIVE VIC
Slide 4: DRH Four Pillars to Drive Performance
DRH Four Pillars to Drive Performance Portfolio Quality Smart External Growth Internal Growth Plan: Fortress Balance Sheet & Nimble • Maximize Profits • New ROI Projects Capital Allocation 4
Slide 5: High-Quality Diversified Portfolio
High-Quality Diversified Portfolio The Chicago Gwen, Luxury Collection
Slide 6: High Quality Portfolio in Key Gateway Markets
High Quality Portfolio in Key Gateway Markets Approximately 2/3 of portfolio located in top, gateway markets. 6
Slide 7: Strong Resort Market Presence
Strong Resort Market Presence Approximately 1/3 of portfolio located in destination resort markets. 7
Slide 8: Short Term Agreements Driving Value
Short Term Agreements Driving Value One of the least encumbered portfolios among all full-service REITs. 2019 2026 23% 35% 7 Hotels 4 assets 77% 11 Hotels 65% Become 24 Hotels 20 Hotels Unencumbered Management 29% 36% 42% 9 Hotels 3 assets 11 Hotels 13 Hotels 45% Become 14 Hotels 29% Unencumbered Br
Slide 9: 2018 Overview & Preliminary 2019 Outlook
2018 Overview & Preliminary 2019 Outlook Hotel Emblem, San Francisco
Slide 10: 2018 Results In-Line With Guidance
2018 Results In-Line With Guidance Full Year Preliminary Full Variance to Guidance Year Results Midpoint RevPAR 1.0% to 1.5% 1.3% +0.1% Change Adjusted $252.5M to $250 to $255 million +$0.5 million EBITDA $253.5M Adjusted $208.5M to $205 to $209 million +$1.75 million FFO $209.0M Adjusted $0.99 to $
Slide 11: Actively Repurchasing Stock
Actively Repurchasing Stock: 6.5M Shares • $250M Plan Authorization • $62M repurchased at $9.50 per share under current 10b5-1 • Active every trading day since early December 2018 Implied Valuation 2018 EBITDA Multiple 11.4x 2018 NOI Cap Rate 8.1% Discount to NAV 25% - 40% Note: Based on latest data
Slide 12: Continued Strength in RevPAR
Continued Strength in RevPAR 2018 Q4 2019 RevPAR Industry Forecasts Total +2.9% +2.4% Industry STR: 2.3% PWC: 2.3% CBRE: 2.5% Resorts +4.0% +3.0% 2019 Brand Luxury +3.7% +3.7% RevPAR Guidance Marriott: 1% - 3%(1) Upper (2) +2.0% +1.6% Hilton: 2% - 4% Upscale Source: STR, PKF, PWC, Company Filings. R
Slide 13: Key Factors Affecting 2019 Guidance
Key Factors Affecting 2019 Guidance Lower Renovation Disruption(1) BI Proceeds Lower in 2019 Renovation ROI Payoffs Citywide Calendars Off Cycle(2) Rising Labor Costs and Acquisitions Property Taxes Marriott / Starwood Merger Integration Complete (1) 2019 renovation disruption estimate is $3M to $4M
Slide 14: Preliminary 2019 Guidance
Preliminary 2019 Guidance 2019 Guidance Metric Low End High End RevPAR Growth 0.5% 2.5% Adjusted EBITDA $256 million $268 million Adjusted FFO $204 million $214 million Adjusted FFO per share $1.00 per share $1.04 per share (based on 205 million diluted shares) Note: Includes Frenchman's Reef busine
Slide 15: DRH 2020 Outlook Favorable
DRH 2020 Outlook Favorable • DRH 2020 pace up 15% • Chicago combined pace up >30% • Boston combined pace up nearly 20% Chicago • DC pace up nearly 30% • NYC supply additions to decline by 30%+ • Frenchman’s Reef & Morning Star Resort to Reopen Boston Note: Latest pace data as of January 25th, 2019.
Slide 16: Key Market Outlook
Key Market Outlook Boston Harbor Cityscape
Slide 17: Boston: Strong Long-Term Investment Drivers
Boston: Strong Long-Term Investment Drivers US 17 Source: HFF, Wall Street Research.
Slide 18: Boston Seaport: Opportunity to Close Gap with Copley
Boston Seaport: Opportunity to Close Gap with Copley (1) (1) Last five years. BCEC Boston Westin 18 Source: HFF, Wall Street Research.
Slide 19: Chicago: Setting Up for Strong 2020 and 2021
Chicago: Setting Up for Strong 2020 and 2021 16% 32% 19 Source: HFF, Wall Street Research.
Slide 20: New York City: Supply Story to Turn Positive in 2020
New York City: Supply Story to Turn Positive in 2020 20 Source: STR, Wall Street Research. 20
Slide 21: California: High Growth Driven by Tech & Other Drivers
California: High Growth Driven by Tech & Other Drivers 21 Source: HFF, Wall Street Research. 21
Slide 22: South Florida: Low Supply & Strong Demand
South Florida: Low Supply & Strong Demand Key West & The Florida Keys Fort Lauderdale • Key West the #1 RevPAR market in the country • Attracts more than 15.5M visitors annually when compared against STR’s Top 25 • Fastest growing airport in North America • Through 2017, the Keys experienced a five-
Slide 23: How Do We Best Allocate Capital in This Environment?
How Do We Best Allocate Capital in This Environment? Shorebreak Hotel
Slide 24: Creating Value Throughout Cycle
Creating Value Throughout Cycle Value Creation Playbook Tools Available • Match-fund Near-term Accretive Acquisitions By Issuing • $350M Investment Equity At or Above NAV Lower Capacity • Consider Opportunistically Raising Equity Above NAV, if • Acquisitions appropriate • ATM program • Limit Non-cor
Slide 25: Proven Acquisition Strategy
Proven Acquisition Strategy Vail Marriott Mountain Resort
Slide 26: Vail Marriott Mountain Resort: Created >$100M in NAV
Vail Marriott Mountain Resort: Created >$100M in NAV Timeless real estate soon to be unencumbered of brand & management. INVESTMENT HIGHLIGHTS • Vail is one of best-performing investments in our portfolio ‒ Recently completed a rooms and meeting space renovation to bring resort closer to luxury comp
Slide 27: L'Auberge de Sedona and Orchards Inn Sedona
L’Auberge de Sedona and Orchards Inn Sedona Off-market transaction with significant upside. • $97M acquisition of two iconic assets with immediate asset management upside in attractive, high-growth resort market - No new supply currently planned or under development in Sedona - Top ten Conde-Nast ra
Slide 28: Westin Fort Lauderdale Beach Resort & Spa
Westin Fort Lauderdale Beach Resort & Spa Nearly 30% increase in NAV over four years of ownership. • NAV increase of $44M since acquisition • EBITDA exceeded underwriting by over $5M • Full guestroom renovation completed in 2018, with F&B and lobby repositioning completed in 2017 - New restaurant, L
Slide 29: Over $380M of NAV Created in Resort Portfolio
Over $380M of NAV Created in Resort Portfolio EBITDA Multiple @ EBITDA Increase Investment ($M) Purchase YE 2018 $M Burlington Hilton $62 16.5x 8.8x $3.8 Cavallo Point $152 13.8x 13.8x $0.0 Charleston Renaissance $42 11.9x 7.1x $2.6 Fort Lauderdale Westin $166 14.8x 11.1x $4.9 Frenchman's Reef & Mor
Slide 30: External Growth Strategy
External Growth Strategy Havana Cabana
Slide 31: Portfolio Strategy to Drive Performance
Portfolio Strategy to Drive Performance 10% Allocation in Any One DIVERSIFICATION Market Reduces Risk LIFESTYLE HOTELS, INDEPENDENTS 1/3 of Portfolio AND SOFT BRANDS(1) Historically Have Outperformed: RESORTS Target 50% of Portfolio (1) Independent, lifestyle and soft brand hotels include the Havana
Slide 32: Research Demonstrates Small Resorts Outperform
Research Demonstrates Small Resorts Outperform • According to CBRE/PKF research study, small resorts(1) have: • Less downside risk due to larger stream of reliable non-rooms revenue • Preserved the most ADR through the recession of the early 2000s • Achieved superior levels of ADR growth since 2009
Slide 33: Strong RevPAR Growth for Small Resorts
Strong RevPAR Growth for Small Resorts REVPAR COMPARISON FROM 1987 - 2017 • Small Resorts have operated with a consistently higher RevPAR during the post- Great Recession period • May be result of a strategy to pursue higher rates at the expense of occupancy - Allowed for strong RevPAR with reduced
Slide 34: Significant Contribution from Non-Rooms Revenue
Significant Contribution from Non-Rooms Revenue NON-ROOM REVENUE COMPARISON • Both small and large resorts have increasingly relied on non-room revenues - Non-room revenues have grown more quickly and regularly than that of other benchmark groups • Since 1989, small resort non- room revenue approx.
Slide 35: DRH Resorts Resilient During Downturns
DRH Resorts Resilient During Downturns • DiamondRock selectively acquires small, upscale resorts in high barrier to entry markets that are more resistant to downturns • Significantly lower supply in DRH resort markets • During the 2009 global recession, DiamondRock’s resorts outperformed the rest of
Slide 36: DRH Lifestyle & Independent Strategy
DRH Lifestyle & Independent Strategy RATIONALE FOR TARGETING LIFESTYLE CURRENT HOTELS, INDEPENDENTS, & SOFT BRANDS ALLOCATION(1) • To grow with shift towards experiential travel Lifestyle, Independents, & Soft Brands • Reduces reliance on traditional brands 21% Traditional • Balances portfolio Brand
Slide 37: Consumers Spending More on Experiences Than Material Goods
Consumers Spending More on Experiences Than Material Goods Indexed Spending Growth (1980-2017) 15-Year Spending CAGR (2002-2017) 1,000 5.0% 800 Shift in 600 Consumer Spending 3.0% 2.2% 400 200 0.9% 0 1980 1985 1990 1995 2000 2005 2010 2015 Motor Vehicles Home Jewelry and Consumer Furnishings Watches
Slide 38: How Do We Maximize Internal Growth?
How Do We Maximize Internal Growth? L’Auberge de Sedona
Slide 39: Asset Management Philosophy
Asset Management Philosophy Proven three-pillared approach to successful asset management Revenue Growth Cost Focus Capital Management Improve market penetration Enhance margins through Determine effective capital with cutting-edge revenue business intelligence tools allocation while prioritizing ma
Slide 40: Best-in-Class Asset Management Team
Best-in-Class Asset Management Team 1 Chief Operating Officer ASSET MANAGEMENT DESIGN & CONSTRUCTION 5 1 VP Asset VP Design and Management Construction 2 2 4 Project Managers Revenue Asset Strategy Management Specialists Analysts 1 Director of Project Finance 1 Project Accountant 40
Slide 41: DRH to Benefit from Renovated Portfolio
DRH to Benefit from Renovated Portfolio >70% of DRH portfolio has been renovated in recent years. CapEx as a % of Revenue (3-Year Average) 13.2% 12.6% 11.7% 11.6% 7.9% 7.2% SHO DRH PEB LHO HST PK $110 Million Renovation Complete $27 Million Renovation Complete Chicago Marriott Downtown Magnificent M
Slide 42: Revenue Management: Ahead of the Curve
Revenue Management: Ahead of the Curve Monitor room-type performance based Technology to identify ideal on sold vs. occupied segmentation mix Uncover & correct potential Segment by day of week pace issues in early stages to to identify rate efficiency impact ADR Drive Utilize Effectively execute Mon
Slide 43: Case Study – L'Auberge de Sedona
Case Study – L’Auberge de Sedona Since acquisition, Hotel ADR has grown $114 and EBITDA has grown $2.9M. DRH acquired the property in February of 2017 Our team identified opportunity to drive incremental ADR with a premium room-type strategy Garden/Spa Cottage Vista Cottage Creekside Cottage ADR inc
Slide 44: Case Study – The Gwen
Case Study – The Gwen The Gwen increased EBITDA by $3M in 2018. Segmentation - Case Study Business Transient Rate RevPAR Index (Luxury Class) Focused on growing market share in the business transient The Gwen’s RPI increased segment, driving corporate volume midweek. 250bps for Chicago luxury hotels
Slide 45: Cost Control Focus: Millions in Cost Savings
Cost Control Focus: Millions in Cost Savings Focusing on the largest variable expenses to drive NOI. Labor Management Energy Efficiency Food Cost Estimated Savings: Estimated Savings: Estimated Savings: $6.2M $1.5M $1.1M Implemented in: Implemented in: Implemented in: 12 Hotels 19 Hotels 15 Hotels I
Slide 46: Operating Initiatives – Labor Management System
Operating Initiatives – Labor Management System New labor management system with total estimated savings of $6.2M. Implemented in: 12 Hotels by YE 2018 Analyze findings Provide Implement a tool to Study historical Review existing and current recommendations manage labor productivity by job planning
Slide 47: Operating Initiatives – Option One Energy
Operating Initiatives – Option One Energy Conducted comprehensive lighting efficiency audits and LED lighting conversions across the portfolio. $1.5M $2.5M 23 Annual savings CapEx Investment Hotels that have undergone across 19 hotels prior to utility rebates lighting retrofits by YE 2018 100% of ho
Slide 48: Operating Initiatives – Food Cost
Operating Initiatives – Food Cost Asset Management implementing best practices with new partners. $1.1M 200bps 75% Estimated Food Margin Properties to have implemented 2019 Savings Improvement New System by YE 2019 Last quarter, margin improvement for properties that implemented new food cost system
Slide 49: Commitment to Sustainability
Commitment to Sustainability • Sustainability initiatives drive profitability • DRH participates in GRESB, widely regarded as the premier ESG environmental benchmarking tool in the real estate industry • In 2018, DRH achieved the 4th highest score in the Global Lodging Sector and earned Green Star S
Slide 50: >$200M Value Creation Opportunities
>$200M Value Creation Opportunities Incremental Capital Incremental Incremental Property Project Spend EBITDA Value JW Marriott Denver Renovation and Restaurant Repositioning $2.4M $1.25M $17M Hotel Emblem Complete Renovation and Repositioning $5.1M $1.5M - $1.8M $25M - $30M Sheraton Key West Reposi
Slide 51: Sheraton Suites Key West: Increase NAV by $23M to $31M
Sheraton Suites Key West: Increase NAV by $23M to $31M Highest RevPAR Market with no new supply under construction. Repositioning Opportunity • Sheraton brand holding back rate • Largest guestrooms on the island • Only hotel on the island’s best beach Lobby Rendering • Reposition to enhance resort e
Slide 52: Sedona Master Plan: Increase NAV by $37M
Sedona Master Plan: Increase NAV by $37M Reposition Orchards Inn with luxury rooms and form connection with L’Auberge de Sedona to create one resort. Current Market Conditions • Market RevPAR up 18% over past 24 months in high barrier-to-entry market • L’Auberge is one of only two luxury resorts in
Slide 53: Vail Marriott Repositioning: Increase NAV by $41M to $55M
Vail Marriott Repositioning: Increase NAV by $41M to $55M Completed first of three phase plan to comprehensively renovate hotel to a luxury standard. Vail Market Conditions • Market has evolved into a 5-star, luxury destination • Lionshead increasingly sought-after location in Vail Upside Opportunit
Slide 54: Vail Marriott Guestroom Renovation
Vail Marriott Guestroom Renovation Vail Marriott Renovated Guestroom 54 54
Slide 55: Vail Marriott Renovated Lobby
Vail Marriott Renovated Lobby 55
Slide 56: Hotel Emblem San Francisco: Increase NAV by $25M to $30M
Hotel Emblem San Francisco: Increase NAV by $25M to $30M Complete renovation and repositioning as part of Viceroy’s Urban Retreat Collection. Renovation Details • Hotel reopened in Jan 2019 as the Hotel Emblem by Viceroy • San Francisco citywide rooms up +80% in 2019 • Renovation included all areas
Slide 57: The Landing Resort & Spa: Increase NAV by $27M
The Landing Resort & Spa: Increase NAV by $27M Premier location in Lake Tahoe with beach and ski resort access. Current Market Conditions • Lake Tahoe is one of the top-rated resort markets in the US • Due to government regulations, Lake Tahoe possesses limited hotel inventory and high barriers to e
Slide 58: The Lodge at Sonoma: Increase NAV by $17M
The Lodge at Sonoma: Increase NAV by $17M Reposition hotel to take advantage of location and drive luxury business. Operational Potential • Sonoma has grown into a premier wine market – in the last 5 years Comp Set RevPAR has grown +$60 with rate increases of +$70 Cottage Enhancements • Invest in re
Slide 59: JW Marriott Cherry Creek: Increase NAV by $17M
JW Marriott Cherry Creek: Increase NAV by $17M Comprehensive Renovation to Bolster Position as Leading Cherry Creek Hotel. Renovation Plan • Upgrade guestrooms, public space and meeting space • Capitalize on the strength of location within the submarket and the JW brand • Reposition rooms as best lu
Slide 60: Before JW Cherry Creek Guestroom
Before JW Cherry Creek Guestroom JW Cherry Creek Guestroom 60 60
Slide 61: After JW Cherry Creek Guestroom
After JW Cherry Creek Guestroom JW Cherry Creek Guestroom 61 61
Slide 62: Worthington Renaissance: Increase NAV by $36M
Worthington Renaissance: Increase NAV by $36M Renovate public spaces by creating a 15,000+ SF ballroom, repositioning the restaurant, and redesigning the lobby. Restaurant Repositioning Operational Potential • Prime Sundance Square location • Partner with celebrity chef Richard Sandoval to convert c
Slide 63: Hilton Boston Downtown: Increase NAV by $14M
Hilton Boston Downtown: Increase NAV by $14M Convert 3rd floor meeting space into 28 additional guest rooms. Market Conditions are Ideal for Key Addition • 1.4M SF of office space is under development in the CBD • 2017 had 200 nights above 95% occupancy Increasing Operational Potential for Property
Slide 64: Cavallo Point: Years of ROI Opportunities
Cavallo Point: 10 Years of ROI Opportunities Newly acquired luxury resort located in Golden Gate National Recreation Area in Sausalito, CA. Situational Overview • Famous luxury resort in highly desirable Sausalito • Situated at the base of the Golden Gate Bridge with sweeping views of the San Franci
Slide 65: Frenchman's Reef & Morning Star Beach Resort
Frenchman’s Reef & Morning Star Beach Resort Morning Star Beach Resort
Slide 66: Frenchman's Reef Resort & Morning Star Beach Resort Key Facts & Figures
Frenchman’s Reef Resort & Morning Star Beach Resort Key Facts & Figures Q2 2020 Projected Reopening $20M+ Brand Support $30M USVI Support $350+ Stabilized ADR $25M Stabilized EBITDA 66
Slide 67: Frenchman's Reef Insurance Claim
Frenchman’s Reef Insurance Claim Insurance Overview • $280M(1) Total Claim (includes rebuild cost, lost profits and ongoing expenses & other costs) ‒ $95M in cash received to date from insurers ‒ $361M is policy limit per storm • DiamondRock expects to fund $45M in brand and infrastructure upgrades
Slide 68: Best-in-Class Rebuild Team
Best-in-Class Rebuild Team Kollin Altomare Architects WhiteSpace The Johnson Studio (Design) (F&B Design) WhiteSpace (Design) Four Seasons Punta Mita Resort & Spa Four Seasons Scottsdale at Troon North The Ritz-Carlton Grand Cayman Four Seasons Scottsdale at Troon North The Ritz-Carlton Laguna Nigue
Slide 69: Morning Star Pool Area Rendering
Morning Star Pool Area Rendering 69
Slide 70: Morningstar Lobby
Morningstar Lobby Morning Star Lobby Rendering Morningstar Virtual Tour 70 70
Slide 71: Morningstar Renovated Guestroom
Morningstar Renovated Guestroom Morning Star Guestroom Rendering Morningstar Virtual Tour 71 71
Slide 72: Frenchman's Reef Lobby
Frenchman’s Reef Lobby Frenchman’s Reef Lobby Rendering Frenchman's Virtual Tour 72 72
Slide 73: Frenchman's Reef Renovated Guestroom
Frenchman’s Reef Renovated Guestroom Frenchman’s Reef Guestroom Rendering Frenchman's Virtual Tour 73 73
Slide 74: Frenchman's Reef Bridge to Stabilized EBITDA
Frenchman’s Reef Bridge to Stabilized EBITDA +$12.8M $25.1M Potential Upside From Items Not In Underwriting: $16.9M • Increased Resort Fee Revenue +$1.6M • Spa Income ($4.5M) +$1.5M ($1.7M) • Casino Income ($1.6M) • Additional F&B outlets & repositioning 2016 Franchise & Insurance Other Utilities F&
Slide 75: Balance Sheet & Capital Structure
Balance Sheet & Capital Structure South Lake Tahoe
Slide 76: Best Balance Sheet in Company History
Best Balance Sheet in Company History Net Debt / EBITDA Unencumbered Properties 23 4.9x 3.6x 3.5x 14 14 2010 2014 2018 2010 2014 2018 Total Debt / Total Asset Value Fixed Charge Coverage Ratio 41% 4.3x 35% 30% 2.9x 2.3x 2010 2014 2018 2010 2014 2018 Source: Company Filings. 76
Slide 77: Balance Sheet Can Withstand 2008-Type Downturn
Balance Sheet Can Withstand 2008-Type Downturn DRH Stress Testing 2019F 2020F 2021F 2022F RevPAR Growth -1.0% -8.7% -7.5% 6.3% Corp. EBITDA Growth 1.0% -13.8% -13.8% 12.6% Net Debt-to-EBITDA 3.4x 3.9x 4.5x 4.0x Leverage Ratio 32.7% 38.2% 44.1% 39.1% (60% Maximum) Fixed Charge Coverage Ratio 4.3x 3.6
Slide 78: $350 Million of Investment Capacity
$350 Million of Investment Capacity CONSERVATIVE BALANCE LEVERAGE AT LOW SHEET STRATEGY END OF PEER GROUP • Net Debt to 2019 EBITDA of 3.5x 9.8 • $300M Line of Credit with no outstanding 8.5 7.9 borrowings 5.8 • 23 unencumbered hotels 5.3 Average: 4.9X 4.2 3.8 • Well-laddered maturity schedule with
Slide 79: Compelling Valuation
Compelling Valuation Cavallo Point, the Lodge at the Golden Gate
Slide 80: Top-Tier Portfolio Quality
Top-Tier Portfolio Quality 2017 Portfolio Average Daily Rate $246 PF 2018 ADR of $237 $229 $227 $225 $220 $211 Peer Average: $216 $209 $202 $171 PEB DRH HST CHSP HT SHO XHR PK RLJ Top Tier Source: Company Filings as of Q4 2017. Note: Pebblebrook data is not pro forma for LaSalle merger. 80
Slide 81: Compelling Valuation
Compelling Valuation 2018 Consensus EBITDA Multiple 13.4 13.2 12.6 11.7 Peer Average: 11.7x 11.3 11.2 11.1 10.5 10.2 PEB CHSP HT SHO PK DRH XHR HST RLJ Source: Baird, FactSet. Data as of 1/25/19. 81
Slide 82: DiamondRock Currently Trades At a Steep Discount to NAV
DiamondRock Currently Trades At a Steep Discount to NAV Market price of $9.88(1) represents a 30% discount to NAV per share. Hotel NOI Cap Rate Estimated Value(2) Region FC Sept 2018 Low Mid High Low Mid High Mid / Key(3) Boston $34.5 6.0% 6.5% 7.0% $494 $532 $576 $444 Chicago $30.2 6.5% 7.0% 7.5% $
Slide 83: Trading at Clear Discount to Value
Trading at Clear Discount to Value DiamondRock has repurchased $62M worth of shares in the last 90 days. DRH COMPANY VALUATION - SHARE PRICE SENSITIVITY $8.00 $9.00 $10.00 $11.00 $12.00 2018 Consensus EBITDA 10.2x 11.0x 11.9x 12.7x 13.5x Multiple 2018 Consensus 9.1% 8.4% 7.8% 7.3% 6.9% NOI Cap Rate
Slide 84: Key Takeaways
Key Takeaways The Landing Resort & Spa
Slide 85: Key Takeaways
Key Takeaways Balance Sheet in Great Shape ($350M Dry Powder) Significant ROI Projects ($200M NAV+) External Growth Focus on Resorts (5 of Last 6 Deals) Compelling Relative Valuation (25% - 40% Discount to NAV) Strong 2020 Setup (Group Pace Up 15%) 85
Slide 86: DiamondRock Hospitality
DIAMONDROCK HOSPITALITY
DiamondRock Hospitality — Investor Day (January 2019) on 6ix