Diamondrock Hospitality Company · NASDAQ:DRH
Diamondrock Hospitality — Investor Presentation (June 2006)
31 slides from Diamondrock Hospitality's investor presentation, Jun 6, 2006
Slide 1: Creating Value
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Slide 2: Active Start to 2006
Active Start to 2006 _ + Completed Secondary Offering ($240 million) mee Acquired 2 Hotels ($367 million) vem Completed 3 Major Renovation Projects mer Delivered Strong Operating Results that 1400 Exceeded Guidance s.0 S300 sa S20 ot 2riD6 3r06 a8 wine Note: January 1,2008 te May 31,2006, Source: Fa
Slide 3: DRH Portfolio
DRH Portfolio » 17 hotels 7,678 rooms $120 RevPAR 11 markets Multiple brands and managers VIRGINISLANDS tomas tines My, co
Slide 4: Comparative Performance — 2006 YTD
Comparative Performance — 2006 YTD Indexed Total Return Price Change + Total Return of 29% since January 1, 2006 and 49% since IPO. + Enterprise Value of $1.6 billion ‘RH +205) + Market Capitalization of $1.1 billion + Efficient Capital Structure Lio 15) Hage 189) enone 2naooe 206 46006 ‘na006 — Sun
Slide 5: How DiamondRock Creates Value
How DiamondRock Creates Value + Brand Conversions — Power of the Brand * ROI Projects — Incremental Value Creation + Scheduled Renovation and Modernization — Sustained Long Term Value Creation
Slide 6: Brand Conversions
Brand Conversions Power of the Brand
Slide 7: Brand Conversions — Power of the Brands
Brand Conversions — Power of the Brands Courtyard Marriott 5% Avenue + Reflagged in January 2005 1 + Rooms renovation 3 2005 Marnott + Outstanding RevPAR growth > 43% in 2005 > 32.1% in 2006F
Slide 8: Brand Conversions — Power of the Brands
Brand Conversions — Power of the Brands Oak Brook Hills Resort Marriott + Reflagged in July 2005 * 127-acre resort + 384. room hotel and a championship golf course + $15M in renovations will start @4 2006 + Projected 2006 RevPAR growth of 25.8%.
Slide 9: Incremental Value Creation
ROI Projects Incremental Value Creation
Slide 10: Keys
ROI Projects — Adding Keys Courtyard Marriott Midtown East + Creating 5 incremental keys + $250k of total estimated cost + Approximately $250k in 2007 of incremental EBITDA
Slide 11: Keys
ROI Projects — Adding Keys Chicago Marriott Downtown Creating 6 incremental keys by relocating Concierge Lounge To be completed in time for the autumn season New rooms will generate concierge rate premium $300k of total estimated cost Approximately $200k in 2007 of incremental EBITDA
Slide 12: Meeting Space
ROI Projects — Adding Meeting Space Los Angeles Airport Marriott
Slide 13: Meeting Space
ROI Projects — Adding Meeting Space Salt Lake City Marriott Reconfigured a closed specialty restaurant into 2,600 sq. ft of flexible meeting and pre- function space $450k of total cost 35% projected unlevered yield Approximately $165k annual incremental EBITDA,
Slide 14: Meeting Space
ROI Projects — Adding Meeting Space Bethesda Marriott Suites Recently converted 2 "last sell" roams into meeting space $310k of total cost 40% projected unlevered yield ssf ‘Meeting Room ~ Business event ‘Meeting Room ~ Soci evert
Slide 15: Meeting Space
ROI Projects — Adding Meeting Space Vail Marriott Mountain Resort
Slide 16: Meeting Space
ROI Projects — Adding Meeting Space Chicago Downtown Marriott On the Magnificent Mile Converting closed specialty restaurant into meeting space 4,670 sq. ft
Slide 17: Meeting Space
ROI Projects — Adding Meeting Space Griffin Gate Marriott Resort Converting unprofitable restaurant into 2,500 sq. ft junior ballroom and 1,100 sq. ft pre-function space $1.5 million of total estimated cost 38.7% projected unlevered yield in the first year
Slide 18: Meeting Space
ROI Projects — Adding Meeting Space Torrance Marriott Converting law margin lounge into high margin banquet space $700k of total estimated cost 30% projected unlevered yield
Slide 19: Outlets
ROI Projects — Adding Outlets Frenchman’s Reef & Morning Star Marriott Beach Resort Sand Bar Project Converted closed service area into a beach bar $145k of total cost 80% of projected unlevered yield ‘Sand Bar “BEFORE”
Slide 20: Outlets
ROI Projects — Adding Outlets Frenchman’s Reef & Morning Star Marriott Beach Resort Sand Bar Project “AFTER”
Slide 21: Other ROI Projects
Other ROI Projects + Griffin Gate Resort & Spa - Converting dysfunctional lower lobby space into 6,500 sq. ft. spa — $1.9 million in estimated cost — 23% projected unlevered yield in the first year - Cease AS « cf
Slide 22: Scheduled Renovations and Modernization
Scheduled Renovations and Modernization Sustained Long Term Value Creation
Slide 23: "BEFORE"
“BEFORE”
Slide 24: Scheduled Renovations - Guestrooms
Scheduled Renovations - Guestrooms Courtyard Marriott Midtown East
Slide 25: Scheduled Renovations - Guestrooms
Courtyard Marriott Scheduled Renovations - Guestrooms 5th Avenue Completed Q3 2005
Slide 26: Scheduled Renovations - Guestrooms
Scheduled Renovations - Guestrooms Torrance Marriott Completed January 2006 “Before” “After”
Slide 27: Scheduled Renovations — Meeting Space
Scheduled Renovations — Meeting Space
Slide 28: Future Renovations
Future Renovations Guestroom Renovations * Oak Brook Hills Marriott Resort & Conference Center — Early 2007 + Orlando — Late 2006 + LAX —Late 2006 Ballroom Renovation + Worthington Renaissance — Late 2006 and Early 2007
Slide 29: Renovation Summary- 2005, 2006 and Q1 2007
Renovation Summary- 2005, 2006 and Q1 2007 Brand Renovatedin 200512006 Conversion _| Guestrooms | Meeting Space | ROI projects Martot Atlanta Alpharetta Boorieeos [200712008 laianta Westin Perimeter Center 2008 2008 Bethesda Mariott Suites x x x SpringHill Suites Buckhead x x [courtyard Marriot Fith
Slide 30: Safe Harbor
Safe Harbor Certain statements made during this presentation are forward- looking and are subject to risks and uncertainties. The forward-looking statements made are based on our beliefs, assumptions and expect: ns of future performance, taking into account all information currently available to us.
Slide 31: Exhibit 99.1 text version of presentation
Exhibit 99.1 [LOGO OF DIAMONDROCK HOSPITALITY] CREATING VALUE June 2006 [GRAPHICS APPEAR HERE] Active Start to 2006 • Completed Secondary Offering ($240 million) • Acquired 2 Hotels ($367 million) • Completed 3 Major Renovation Projects • Delivered Strong Operating Results that Exceeded Guidance [CH
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