Diamondrock Hospitality Company · NASDAQ:DRH
Diamondrock Hospitality — Investor Presentation (August 2010)
11 slides from Diamondrock Hospitality's investor presentation, Aug 10, 2010
Slide 1: Investor Presentation August 2010
Investor PresentationAugust 2010
Slide 2: Investment Highlights
Investment Highlights 2 Early Stages of Lodging RecoveryQuality High Growth PortfolioPositioned for AcquisitionsBest in Class Capital StructureAttractive Valuation
Slide 3: DiamondRock at a Glance
DiamondRock at a Glance Market Valuation at 08/06/10:Share Price: $9.84Shares Outstanding: 155 mmMarket Capitalization: $1,521 mmNet Debt: $628 mmEnterprise Value: $2,149 mmEV / 2010 EBITDA(2): 16.0xEV / 2010 Pro Forma EBITDA(3): 15.2x 3 Per the Company's full year guidance as of June 18, 2010Per mi
Slide 4: Early Stages of Recovery in Lodging Fundamentals
Early Stages of Recovery in Lodging Fundamentals DRH's operating results exceed internal expectations for first half 2010DRH anticipates a robust, multi-year recovery in lodging fundamentals:Business mix shifting to more profitable demand segmentsConstrained supply picture very favorableGreen Street
Slide 5: Portfolio Overview
Portfolio Overview 5 Our portfolio is concentrated in Top 25 MSAs and destination resorts. Portfolio positioned for superior growth. Market Concentration (% of EBITDA) Brand Concentration (% of EBITDA) Note: Market and Brand Concentrations based on forecast 2010 hotel adjusted EBITDA, including the
Slide 6: Acquisition Pipeline
Acquisition Pipeline 6 Increased volume and quality of investment opportunitiesCurrently evaluating several transactions in Top 20 MSAsSignificant investment capacityExpected year-end cash balance of $160 millionUndrawn $200 million line of credit12 hotels unencumbered by debtOff-Market Transactions
Slide 7: 2010 Acquisitions
2010 Acquisitions 77 Allerton Hotel ChicagoDistressed, off-market transactionAcquired senior loan at 13% discountLast dollar of investment at $137k/keyGlobal brand repositioning opportunity if fee title obtainedHilton Minneapolis821 rooms; 77,000 sq. ft. meeting spaceLeading group hotel in Minnesota
Slide 8: Capital Structure Best in Class
Capital Structure Best in ClassNo debt maturities until the fourth quarter of 2014$160 million cash balance at year endUndrawn $200 million credit facility12 unencumbered hotelsClosed new $200 million unsecured credit facility Inexpensive debt starting at 3.75%Flexible financial covenants4-year term
Slide 9: DiamondRock Capital Structure - No Corporate Debt
DiamondRock Capital Structure - No Corporate Debt 9 Courtyard Midtown East (Oct. 2014)EBITDA: $7.2mm; Debt: $42.8mm at 8.81% Salt Lake City Marriott (Jan. 2015)EBITDA: $4.7mm; Debt: $32.4mm at 5.50% Los Angeles Airport Marriott (July 2015)EBITDA: $7.1mm; Debt: $82.6mm at 5.30% Worthington Renaissanc
Slide 10: Attractive Valuation
Attractive Valuation 10 Source: Bloomberg, SNL Financial as of August 6, 2010 DRH trades at EBITDA multiple discount to its closest peers, despite equivalent or better growth prospects, asset quality and leverageImplied valuation of $203k per key, approximately 35% discount to replacement cost
Slide 11: 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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