Diamondrock Hospitality Company · NASDAQ:DRH
Diamondrock Hospitality — Investor Presentation (December 2025)
20 slides from Diamondrock Hospitality's investor presentation, Dec 8, 2025
Slide 1: Investor Presentation December 2025
INVESTOR PRESENTATION DECEMBER 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 35 26 ROOMS GEOGRAPHIC MARKETS PROPERTIES Luxury Resort Lifestyle Resort Urban Lifestyle Urban Gateway LIFESTYLE/ RESORT URBAN Boston Ft. Worth Ft. Lauderdale Chicago Vail Sausalito Salt Lake City San Diego Key West Sonoma Burlington Phoenix Denve
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 $63MM common shares in 2024/YTD 2025 ✓
Slide 5: Outsized Free Cash Flow Per Share Growth
5 • Outsized Free Cash Flow Per Share Growth Over the Medium and Long Term vs. Peers • ~30% Lower Cap Ex Per Key Spent vs. Peers Over Trailing 5 Years, ~18% Lower Over Trailing 10 Years • Optimizing Renovation Cycles Across Portfolio • Anticipated Capital Spend Incrementally Important In Capital Rec
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 Cap Ex • Unfavorable ground lease • Higher cost operating environment • Deteriorating marke
Slide 7: Benefits of a Predominantly Third-Party Managed Portfolio
BENEFITS OF A PREDOMINANTLY THIRD-PARTY MANAGED PORTFOLIO 7 ❖ Greater control over expenses, cap ex, and cash ❖ Contracts are short term and generally terminable at will ❖ Decision-making catered to each hotels’ unique needs ❖ Flexibility around distribution channels and service providers ❖ Ability
Slide 8: Well-Positioned: Leisure as a Long-Term Secular Driver
23 Hotels 4,348 Keys 56% of Portfolio by Revenue 12 Independent Hotels 100% Unencumbered by Management WELL-POSITIONED: LEISURE AS A LONG-TERM SECULAR DRIVER LUXURY & LIFESTYLE RESORTS URBAN LIFESTYLE HOTELS KEY WEST, FL THE HYTHE, A LUXURY COLLECTION HOTEL PRAY, MT AUSTIN, TX HAVANA CABANA HENDERSO
Slide 9: Resilience of Leisure Travel
RESILIENCE OF LEISURE TRAVEL 9 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 Boom
Slide 10: Well-Positioned: Group and Urban Demand Recovery
WELL-POSITIONED: GROUP AND URBAN DEMAND RECOVERY 10 AC MINNEAPOLIS DOWNTOWN COURTYARD MANHATTAN/FIFTH AVENUECOURTYARD DENVER DOWNTOWN 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 Markets 2 Hotels, 59
Slide 11: Q3 2025 Operational Highlights
Q3 2025 OPERATIONAL HIGHLIGHTS 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 lo
Slide 12: 2025 Updated Outlook Assumptions
2025 UPDATED OUTLOOK ASSUMPTIONS CURRENT Corporate Expenses $24MM to $25MM, unchanged Interest Expense $62MM to $63MM, a decrease of $1MM at the midpoint Weighted Average Shares 208.5MM 2025 GUIDANCE PREVIOUS 12 METRIC LOW END HIGH END LOW END HIGH END CHANGE Comparable RevPAR Growth (0.5%) 0.5% (1.
Slide 13: 2026 Industry and DiamondRock Specific Tailwinds
2026 INDUSTRY AND DIAMONDROCK SPECIFIC TAILWINDS DRH’S FIFA WORLD CUP EBITDA EXPOSURE LIBERATION DAY COMP HOLIDAY CALENDAR GOV’T SHUTDOWN COMP THE CLIFFS AT L’AUBERGEPREFERRED STOCK REDEMPTIONINDUSTRY TAILWINDS 13 No. CA 3.5% Boston 13% NYC 8% Atlanta 2% So. FL 12% Host to 55% of Round 16-32 U.S. ga
Slide 14: Balance Sheet
BALANCE SHEET 14 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 15: ROI Project: The Cliffs at L'Auberge de Sedona
ROI PROJECT: THE CLIFFS AT L’AUBERGE DE SEDONA 15 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% • Completion: Q3 202
Slide 16: The Cliffs at L'Auberge de Sedona
THE CLIFFS AT L’AUBERGE DE SEDONA 16
Slide 17: 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 18: Negligible New Supply Impact for Several Years
NEGLIGIBLE NEW SUPPLY IMPACT FOR SEVERAL YEARS 18 29 OF 35 HOTELS HAVE NO COMPETITIVE SUBMARKET SUPPLY UNDER CONSTRUCTION Supply defined as under construction hotels opening 2025-2027 in STR classes +/- one to DRH hotels within radius of competitive set v v no supply growth 1-2% growth 4-6% growth >
Slide 19: Corporate Responsibility Accomplishments
CORPORATE RESPONSIBILITY ACCOMPLISHMENTS GRESB ANNUAL RESULTS VS PEER GROUP 2025 DRH GRESB SCORE & RECOGNITION FIVE CONSECUTIVE YEARS AS SECTOR LEADER GRESB REAL ESTATE ASSESSMENT • Ranked 3rd in Americas and 5th Worldwide for GRESB Score within Hotels/Listed • Ranked 19th GRESB Score among 95 U.S.
Slide 20: DiamondRock Hospitality
DIAMONDROCK HOSPITALITY
DiamondRock Hospitality — Investor Presentation (December 2025) on 6ix