Diamondrock Hospitality Company · NASDAQ:DRH
Diamondrock Hospitality — Investor Presentation (March 2025)
14 slides from Diamondrock Hospitality's investor presentation, Mar 3, 2025
Slide 1: Investor Presentation March 2025
INVESTOR PRESENTATION MARCH 2025
Slide 2: Forward Looking Statements & Use of Non-GAAP Financial Measures
FORWARD LOOKING STATEMENTS & USE OF NON-GAAP FINANCIAL MEASURES FORWARD LOOKING STATEMENTS Certain statements made during this presentation are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements generally include the words “believe,” “expect,” “anticip
Slide 3: DiamondRock at a Glance
DIAMONDROCK AT A GLANCE DIVERSIFIED GEOGRAPHY DIVERSIFIED PROPERTIES FINANCIAL SUMMARY Net Debt2 to EBITDA Total Debt2 $1.1B 3.5x Total Debt to Gross Book Value 30% Revenue $1.1B Corporate Adj. EBITDA1 $292MM FY 2024 PORTFOLIO 9,594 36 26 ROOMS GEOGRAPHIC MARKETS PROPERTIES 1. Adjusted to exclude sh
Slide 4: Well-Positioned Portfolio: Leisure as a Long-Term Secular Driver
24 Hotels 4,347 Keys 56% of Portfolio by Revenue 13 Independent Hotels 100% Unencumbered by Management WELL-POSITIONED PORTFOLIO: 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
Slide 5: Well-Positioned Portfolio: Group and Urban Demand Recovery
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 WELL-POSITIONED PORTFOLIO: GROUP AND URBAN DEMAND RECOVERY 5 Hotels 3,443 Keys 31% of Portfolio by Revenue Strong Conven
Slide 6: 2024 Operational Results Key Takeaways
2024 OPERATIONAL RESULTS KEY TAKEAWAYS Hotel Champlain Burlington, Curio Collection by Hilton • Sold Westin DC City Center in Feb. 2025 for $92MM or 7% Cap Rate, 5% FCF Yield • Repurchased 3.1 million shares at an average price of $8.33 per share • Acquired AC Hotel Minneapolis in November 2024 for
Slide 7: 2025 Outlook
2025 OUTLOOK 2025 GUIDANCE OUTLOOK 7 • Group revenue pace up 2% over STLY, a 500bp sequential increase from Q3’24 • Excluding Chicago, group pace up 6% over STLY • Urban markets continue to see increase in business transient demand • Labor and benefits expenses are normalizing, particularly in resor
Slide 8: Balance Sheet & Liquidity
PROFORMA BALANCE SHEET BALANCE SHEET & LIQUIDITY Note: Mortgages reflect balance at scheduled maturity, Term Loan reflects exercise of one-year extension SIGNIFICANT LIQUIDITY AVAILABLE AT YEAR-END 2024 Units in $MM 8 NET DEBT + PREFERRED / EBITDA Source: DiamondRock February 24, 2025 Baird Comp She
Slide 9: Most Liquid Portfolio Amongst Peers
MOST LIQUID PORTFOLIO AMONGST PEERS BENEFITS OF SHORT-TERM AGREEMENTS ■ Terminable at Will ■ Asset Liquidity Enhanced ■ Superior Cost Controls ■ 50 to 100 bps Better Exit Cap Rate ■ Enhanced Flexibility to Optimize Performance VALUATION PREMIUM: UNENCUMBERED VS. ENCUMBERED HOTELS 15% 20% 0% 20% 40%
Slide 10: Resilience of Leisure Travel
RESILIENCE OF LEISURE TRAVEL 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 Boomers
Slide 11: High Exposure in Limited Supply Markets
HIGH EXPOSURE IN LIMITED SUPPLY MARKETS 1 Methodology: 3 year average of CoStar 12 month supply change forecast (2024 – 2026); green light < 1%, yellow light <1-3%, red light 3%+ MARKET % OF 2024 EBITDA SUPPLY FORECAST1 RESORT MARKETS Florida Keys 6.8% Vail 5.9% Fort Lauderdale 5.6% Sedona 3.8% Dest
Slide 12: 2025 The Cliffs at L'Auberge
2025 THE CLIFFS AT L’AUBERGE • New cliff side pool and bar with some of the best views of Sedona’s red rocks • Significant rate opportunity • Total Cost: ~$25MM • Stabilized Yield on Cost: 10% • Est. Completion: 2025 Integration of Orchards Inn with L’Auberge de Sedona 2024 ADR COMPARISON 2x Differe
Slide 13: Potential Longer Term Capital Projects
POTENTIAL LONGER TERM CAPITAL PROJECTS Courtyard Denver Downtown 13 The Westin Boston Seaport District Exploring Adding More Waterfront Guest Rooms Franchise Expiration in 2027 Potential Upbranding and Expansion Franchise Expiration in 2026 Value Creation Opportunity Currently 37 Rooms Entitled for
Slide 14: 2024 ESG Accomplishments – GRESB Results
2024 ESG ACCOMPLISHMENTS – GRESB RESULTS 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
DiamondRock Hospitality — Investor Presentation (March 2025) on 6ix