Diamondrock Hospitality Company · NASDAQ:DRH
Diamondrock Hospitality — Investor Presentation (March 2026)
20 slides from Diamondrock Hospitality's investor presentation, Mar 2, 2026
Slide 1: Investor Presentation March 2026
INVESTOR PRESENTATION MARCH 2026
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.” MANAGEMENT ALIGNMENT TO DRIVE OUTPERFORMANCE ✓ Streamlined executive team in 202
Slide 5: Free Cash Flow Per Share Growth Outperformance Driving Total Shareholder Returns
5 • Outsized Free Cash Flow Per Share Growth Over the Medium and Long Term vs. Peers • ~32% Lower Cap Ex Per Key Spent vs. Peers Over Trailing 5 Years, ~19% Lower Over Trailing 10 Years • Optimizing Renovation Cycles and Scopes Across Portfolio • Anticipated Capital Spend Incrementally Important In
Slide 6: Benefits of a Predominantly Third-Party Managed Portfolio
BENEFITS OF A PREDOMINANTLY THIRD-PARTY MANAGED PORTFOLIO 6 ✓ Greater control over expenses, Cap Ex, and cash ✓ Contracts are short term and generally terminable at will ✓ Decision-making catered to each hotel’s unique needs ✓ Flexibility around distribution channels and service providers ✓ Ability
Slide 7: Capital Expenditures: Preparation for Success
PROJECTS ARE SCHEDULED THROUGH 2030 Minimizes Earnings Disruption, Reduces Costs, Enhances Execution CAPITAL EXPENDITURES: PREPARATION FOR SUCCESS 7 STABLE ANNUAL CAP EX SPEND = PREDICTABLE CASH FLOW MAXIMIZES SHAREHOLDER RETURNS 0% 2% 4% 6% 8% 10% $0 $25 $50 $75 $100 $125 $150 2014-19 Avg. 2022 202
Slide 8: 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 9: Well-Positioned: Leisure as a Long-Term Secular Driver
THE LODGE AT SONOMA RESORT23 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 HAVANA CABANA PH
Slide 10: Resilience of Leisure Travel
RESILIENCE OF LEISURE TRAVEL 10 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/Millennials (25-39) Active Retirement/Baby Bo
Slide 11: Well-Positioned: Group and Urban Demand Recovery
WELL-POSITIONED: GROUP AND URBAN DEMAND RECOVERY 11 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 12: 2025 Operating Highlights
2025 OPERATING HIGHLIGHTS KEY TAKEAWAYS KIMPTON HOTEL PALOMAR PHOENIX • Repurchased 4.8 million shares at an average price of $7.72 per share • Executed at an implied ~10% cap rate • Redeemed 8.250% Series A Cumulative Redeemable Preferred Stock • Invested $81.6MM in capital improvements at our hote
Slide 13: 2026 Guidance & Assumptions
2026 GUIDANCE & ASSUMPTIONS ASSUMPTIONS Cash Corporate Expenses $25.0MM to $26.0MM Cash Interest Expense $57.5MM to $58.5MM Interest Income $2.0MM to $3.0MM Weighted Average Shares 208.0MM 2026 GUIDANCE 13 METRIC 2025 2026 LOW 2026 HIGH 2026 MIDPOINT Comparable RevPAR Growth 0.4% 1.0% 3.0% 2.0% Comp
Slide 14: 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 L’AUBERGE DE SEDONAPREFERRED STOCK REDEMPTIONINDUSTRY TAILWINDS 14 No. CA 7% Boston 13% NYC 9% Atlanta 2% Ft. Lauderdale 6% In DRH Markets: 55% of Group Stag
Slide 15: 2025 Key ROI Project: L'Auberge de Sedona
2025 KEY ROI PROJECT: L’AUBERGE DE SEDONA 15 INTEGRATION OF THE CLIFFS INTO L’AUBERGE DE SEDONA • New cliffside pool, bar, and event space with some of the best views of Sedona’s red rocks • Significant rate opportunity • Q4 2025 RevPAR +15%, EBITDA +25% • Total Cost: $25MM • Stabilized Yield on Cos
Slide 16: 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 17: Balance Sheet: Simple, Conservative, & Positioned for Growth
Term Loan 2 $300MM $0 $200 $400 $600 $800 2026 2027 2028 2029 2030 2031 Term Loan 1 $500MM Term Loan 3 $300MM Revolver 0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x HST DRH APLE RHP SHO CLDT XHR PK RLJ PEB INN BALANCE SHEET: SIMPLE, CONSERVATIVE, & POSITIONED FOR GROWTH 17 High LeverageLow Leverage R
Slide 18: Negligible New Supply for Several Years
NEGLIGIBLE NEW SUPPLY FOR SEVERAL YEARS 18 28 OF 35 HOTELS HAVE NO POTENTIAL COMPETITIVE NEW SUPPLY OPENING IN 2026 Supply defined as under construction hotels opening 2026-2028 in STR classes +/- one to DRH hotels within radius of competitive set. Markets sized by 2025 EBITDA. No Supply Growth 1-5%
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 • Top 20% GRESB Score among 95 U.S. List
Slide 20: DiamondRock Hospitality
DIAMONDROCK HOSPITALITY
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