Diamondrock Hospitality Company · NASDAQ:DRH
Diamondrock Hospitality — Q1 2025 Earnings Presentation
19 slides from Diamondrock Hospitality's earnings presentation, May 2, 2025
Slide 1: Investor Presentation June 2025
INVESTOR PRESENTATION JUNE 2025
Slide 2: Forward Looking Statements & Use of Non-GAAP Financial Measures
FORWARD LOOKING STATEMENTS & USE OF NON-GAAP FINANCIAL MEASURES FORWARD LOOK ING STATEMENTS Certain statements made during this presentation are forward-looking All information in this presentation is as of the date of this statements that are subject to risks and uncertainties. Forward-looking pres
Slide 3: DiamondRock at a Glance
DIAMONDROCK AT A GLANCE PORTFOLIO BRAND EXPOSURE DIVERSIFIED GEOGRAPHY % OF 2024 9,595 ROOMS MARKET EBITDA Boston 13.3% Chicago 12.5% 36 PROPERTIES New York City Florida Keys 8.2% 6.8% Vail 5.9% Fort Lauderdale 5.6% 26 GEOGRAPHIC MARKETS Fort Worth Salt Lake City 4.9% 3.9% Denver 3.9% Sedona 3.8% De
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.” RELENTLESS FOCUS ON SHAREHOLDER VALUE CREATION • Targeting long-term average ann
Slide 5: FFO/Sh & FCF/Sh Growth Drives Total Shareholder Returns
FFO/SH & FCF/SH GROWTH DRIVES TOTAL SHAREHOLDER RETURNS “A long-term commercial real estate investor should have a relentless focus on growing Free Cash Flow per share.” FFO/Sh CAGR RANKING BY TSR T1 Yr T5 Yrs T10 Yrs T1 Yr T3 Yrs T5 Yrs DRH 1 2 2 1 3 4 SHO 6 5 6 2 2 5 HST 4 1 1 3 1 1 X HR 3 3 4 4 5
Slide 6: Capital Recycling Value Creation Example
CAPITAL RECYCLING VALUE CREATION EXAMPLE EXAMPLE EXAMPLE EXAMPLE 2024/YTD 2025 COMPLETED CAPITAL RECYCLING DISPOSITION LOWEST FCF ACQUISITION INCREMENTAL PROCEEDS YIELD AVG. Invested: FCF YIELD FCF ($MM) 8.2% cap rate ($MM) AC Minneapolis (minimal cap ex ) 100 2.7% 6.5% 3.8 $30MM 150 2.7% 6.5% 5.7 2
Slide 7: Well-Positioned: Leisure as a Long-Term Secular Driver
WELL-POSITIONED: LEISURE AS A LONG-TERM SECULAR DRIVER LUXURY & LIFESTYLE RESORTS AUSTIN, TX MARATHON, FL FORT LAUDERDALE, FL PRAY, MT LAKE AUSTIN SPA RESORT TRANQUILITY BAY RESORT WESTIN FORT LAUDERDALE BEACH RESORT CHICO HOT SPRINGS SEDONA, AZ DESTIN, FL LAKE TAHOE, CA HUNTINGTON BEACH, CA 24 Hote
Slide 8: Resilience of Leisure Travel
RESILIENCE OF LEISURE TRAVEL MORE PEOPLE MORE FLEXIBILITY U.S. Population by Age Segment Over Time (in MM) Upside Opportunity with Locational Flexibility Per CBRE, population 4.4 Days Per Week growth in heaviest traveling 2010 2030 90.4 2019 Days Per Week in Office of an Average US Office Worker seg
Slide 9: Well-Positioned: Group and Urban Demand Recovery
WELL-POSITIONED: GROUP AND URBAN DEMAND RECOVERY URBAN GROUP HOTELS BOSTON, MA CHICAGO, IL SAN DIEGO, CA 5 Hotels 3,443 Keys WESTIN BOSTON SEAPORT CHICAGO MARRIOTT MAGNIFICIENT MILE WESTIN SAN DIEGO BAYVIEW 31% of Portfolio by Revenue FORT WORTH, TX SALT LAKE CITY, UT Strong Convention Markets THE W
Slide 10: Q1 2025 Operational Results
Q1 2025 OPERATIONAL RESULTS KEY TAKEAWAYS Hotel Champlain Burlington, Curio Collection By Hilton Q1 2025 TREVPAR, ADJ. EBITDA AND AFFO/SH EXCEEDED ORIGINAL GUIDANCE +0.6% +1.6% +2.0% +11.8% T otal Revenue (1) T otal RevPAR (1) RevPAR (1) Adj. FFO/Share REVPAR TREVPAR REVPAR TREVPAR vs 2024 vs 2024 v
Slide 11: 2025 Updated Outlook
2025 UPDATED OUTLOOK 2025 GUIDANCE CURRENT GUIDANCE ORIGINAL GUIDANCE CHANGE METRIC LOW END HIGH END LOW END HIGH END DRH Peers Comparable RevPAR Growth (1%) 1% 1% 3% -200bps -130bps Adjusted EBITDA $270MM $295MM $275MM $300MM (1.7%) (0.7%) Adjusted FFO $198MM $223MM $199MM $224MM (0.5%) (0.8%) Adju
Slide 12: Balance Sheet & Liquidity
BALANCE SHEET & LIQUIDITY DEBT MATURITIES SIGNIFICANT LIQUIDITY AVAILABLE $600 CORPORATE CASH $500 $100MM $400 $300 $296 $200 UNDRAWN $625MM CASH AT HOTELS $0 REVOLVER $125MM $400MM 2025 2026 2027 2028 MORTGAGES TERM LOANS Note: Mortgages reflect balance at scheduled maturity, Term Loan reflects exe
Slide 13: Most Liquid Portfolio Amongst Peers
MOST LIQUID PORTFOLIO AMONGST PEERS % OF UNENCUMBERED PROPERTIES GROUND LEASE EXPOSURE 100% % OF TENOR OF 5 # OF LEASED COMPANY ROOMS SHORTEST HOTELS 80% PK 24% 14 15 60% HST 29% 17 19 40% PEB4 41% 32 18 20% PEER AVG 29% 36 10 SHO5 16% 47 1 0% 1 2 3 DRH 6 2 1% 64 6 DRH PEB RLJ SHO HST PK XHR XHR 8%
Slide 14: ROI Project: The Cliffs of Sedona
ROI PROJECT: THE CLIFFS OF SEDONA INTEGRATION OF ORCHARDS INN WITH L’AUBERGE DE SEDONA • New cliff side pool and bar with some of the best views of Sedona’s red rocks • Significant rate opportunity • Total Cost: $25MM • Stabilized Y ield on Cost: 10% • Est. Completion: Fall 2025 2024 ADR COMPARISON
Slide 15: The Cliffs of Sedona – Progress Photos
THE CLIFFS OF SEDONA – PROGRESS PHOTOS 15
Slide 16: Value Creation Opportunities & Potential Longer Term ROI Projects
VALUE CREATION OPPORTUNITIES & POTENTIAL LONGER TERM ROI PROJECTS Franchise Expired in 2025 Franchise Expiration in 2026 Franchise Expiration in 2027 Value Creation Opportunity Value Creation Opportunity Potential Upbranding & Expansion The Westin Boston Courtyard Denver Seaport District Downtown Cu
Slide 17: Negligible New Supply Impact for Several Years
NEGLIGIBLE NEW SUPPLY IMPACT FOR SEVERAL YEARS OVER 92% OF DIAMONDROCK’S EBITDA HAS NO COMPETITIVE SUPPLY THREAT % of 2024 % of 2024 MARKET SUPPLY MARKET SUPPLY EBITDA EBITDA Ft. Lauderdale 12.4% New York City (Times Sq/5th Ave) 2.0% San Fran/Sausalito/Sonoma 12.4% Charleston 1.6% Florida Keys 10.3%
Slide 18: Corporate Responsibility Accomplishments
CORPORATE RESPONSIBILITY ACCOMPLISHMENTS 5th Consecutive Year Recognized as Sector Leader ISS ESG RANKINGS(2) 2024 DRH GRESB SCORE & RECOGNITION 2 ENVIRONMENTAL GRESB REAL ESTATE ASSESSMENT GRESB PUBLIC DISCLOSURE 3 • Ranked 1st GRESB Score among Worldwide Listed Hotels • Ranked 1st within the U.S.
Slide 19: DiamondRock Hospitality
DIAMONDROCK HOSPITALITY
DiamondRock Hospitality Company — Q1 2025 Earnings Presentation on 6ix