Diamondrock Hospitality Company · NASDAQ:DRH
Diamondrock Hospitality — Investor Presentation (May 2010)
19 slides from Diamondrock Hospitality's investor presentation, May 26, 2010
Slide 1: Investor Presentation May 2010
Investor Presentation May 2010
Slide 2: Investment Highlights
Investment Highlights 2 Proven Investment Platform Experienced and disciplined management team Prudent, best in class, capital structure with no near term debt maturities or corporate debt Positioned for Internal Growth DRH portfolio concentrated in high growth, high barrier-to-entry markets Limited
Slide 3: Hilton Minneapolis
Hilton Minneapolis 3 Core institutional quality asset in a Top 20 MSA Anticipated close during July 2010 $155.5 million total investment 12.2x 2010E EBITDA 821 rooms Largest hotel in Minnesota 77,000 square feet of meeting space Most hotel meeting space in the CBD 5,000 square feet added in 2008 Str
Slide 4: Allerton Hotel - Chicago
Allerton Hotel - Chicago 4 Off-market deal sourced through management relationship Acquired all notes of the senior mortgage loan secured by a unique institutional quality asset in a Top 5 MSA Located on the Magnificent Mile, in downtown Chicago DiamondRock is pursuing fee simple ownership of the as
Slide 5: DiamondRock Overview
5 DiamondRock Overview
Slide 6: Company Overview
Company Overview Premier capital allocators Disciplined management team focused on long-term shareholder returns Focused on maintaining a durable balance sheet Portfolio of premium branded, upper-upscale assets in key gateway cities and destination resorts Thoughtful asset management focused on oper
Slide 7: Experienced Management Team
Experienced Management Team 7 Senior Management Relevant Experience Mark Brugger Chief Executive Officer A founder of DiamondRock Hospitality Over 15 years of real estate experience Extensive lodging and finance experience at Marriott John Williams President and Chief Operating Officer A founder of
Slide 8: Pro Forma Portfolio Overview
Pro Forma Portfolio Overview 8 DiamondRock's diversified portfolio consists of premium branded hotels concentrated in key gateway cities and destination resorts Market Concentration (% of EBITDA) Brand Concentration (% of EBITDA) Note: Market and Brand Concentrations based on forecast 2010 hotel adj
Slide 9: DiamondRock at a Glance
DiamondRock at a Glance Market Valuation at 05/21/10: Share Price: $9.61 Shares Outstanding: 133.1mm Market Capitalization: $1,278.9mm Net Debt: $603.9mm Enterprise Value: $1,882.8mm EV / 2010 EBITDA(2): 16.6x EV per Key: $196,412 9 Operating results are compared to same time last year results Per S
Slide 10: DiamondRock Share Performance
DiamondRock Share Performance 10 Total Return Since DRH IPO (May 26, 2005) Source: SNL Financial as of May 21, 2010 Lodging REIT Index includes DRH, AHT, HST, LHO, HPT, HT, FCH, SHO, BEE. Management's successful initiatives have been positively reflected in DiamondRock's stock performance relative t
Slide 11: DiamondRock Balance Sheet
11 DiamondRock Balance Sheet
Slide 12: Durable Balance Sheet
Durable Balance Sheet In 2009, the Company reduced net debt by 30%, paid down all corporate level debt, and enhanced its liquidity position. As a result, DiamondRock significantly strengthened its balance sheet. 12 No mortgage debt maturities until 4Q 2014(1) Chart does not reflect scheduled princip
Slide 13: DiamondRock Pro Forma Capital Structure - No Corporate Debt
DiamondRock Pro Forma Capital Structure - No Corporate Debt 13 Courtyard Midtown East (Oct. 2014) EBITDA: $6.6mm; Debt: $42.9mm at 8.81% Salt Lake City Marriott (Jan. 2015) EBITDA: $4.2mm; Debt: $32.7mm at 5.50% Los Angeles Airport Marriott (July 2015) EBITDA: $6.9mm; Debt: $82.6mm at 5.30% Worthing
Slide 14: Expansion through Acquisitions
Expansion through Acquisitions 14 Execution Acquisition of senior mortgage loan secured by the Allerton Hotel in downtown Chicago Acquisition of the Hilton Minneapolis Relationships Marriott "first look" relationship - Facilitated 8 previous acquisitions Industry relationships - Facilitated 7 previo
Slide 15: Investment Highlights
Investment Highlights 15 Proven Investment Platform Experienced and disciplined management team Prudent, best in class, capital structure with no near term debt maturities or corporate debt Positioned for Internal Growth DRH portfolio concentrated in high growth, high barrier-to-entry markets Limite
Slide 16: Appendix
Appendix oe oe ee
Slide 17: Non-GAAP Financial Reconciliation
Non-GAAP Financial Reconciliation 17 Fiscal Quarter Ended March 26, 2010 Fiscal Quarter Ended March 27, 2009 (in thousands) (in thousands) (in thousands) Net loss $ (8,346) $ (5,293) Interest expense 8,126 11,498 Income tax benefit (1,628) (5,978) Real estate related depreciation 18,907 18,717 EBITD
Slide 18: Non-GAAP Financial Reconciliation - Hilton Minneapolis
Non-GAAP Financial Reconciliation - Hilton Minneapolis 18 Trailing 12 Month Ended February 28, 2010 (in thousands) Net Income $ 4,440 Interest expense 0 Income tax 320 Real estate related depreciation 6,550 EBITDA $ 11,310 Note: Reconciliation assumes DiamondRock's capital structure and, therefore,
Slide 19: Safe Harbor
Safe Harbor Certain statements made during this presentation are forward- looking and are subject to risks and uncertainties. Many of these risks and uncertainties are discussed in the prospectus supplement and in the Company's filings with the Securities and Exchange Commission, all of which you sh
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