Diamondrock Hospitality Company · NASDAQ:DRH
Diamondrock Hospitality — Q1 2020 Earnings Presentation
15 slides from Diamondrock Hospitality's earnings presentation, May 18, 2020
Slide 1: DiamondRock Q1 2020 Supplemental Earnings Data
L’Auberge de Sedona DiamondRock Q1 2020 Supplemental Earnings Data | May 18, 2020 1
Slide 2: DiamondRock at a Glance
DiamondRock at a Glance 2019 FINANCIAL SUMMARY CREDIT FACILITY COMPLIANCE Covenant Limitation DRH Q1’20 31 (>10K) Hotels (Rooms) Maximum Leverage Ratio < 60.0% 34.5% Total Revenue $938.1MM Fixed Charge Coverage Ratio > 1.50x 2.92x Secured Indebtedness to Total < 45.0% 20.9% Room Revenue $661.2MM Ass
Slide 3: High Quality Lodging REIT
High Quality Lodging REIT SIGNIFICANT INVESTMENT 3-Year Average CapEx as Percent of Revenue(1) 14.7% 14.1% 11.9% 10.5% Peer Average: 10.6% 9.8% 9.0% 7.9% 7.3% DRH HT SHO PEB RLJ XHR HST PK QUALITY ASSETS 2019 Portfolio Average Daily Rate(2) $256 $239 $234 $233 $226 $224 $222 Peer Average: $227 $183
Slide 4: DiamondRock Balance Sheet Profile
DiamondRock Balance Sheet Profile (1) DiamondRock Has Significant FUTURE PRINCIPAL PAYMENTS (IN $MM) Liquidity, Balance Sheet Flexibility and No Material Near-Term Maturities $400 • Net debt-to-EBITDA of 3.7x at year-end 2019 $350 $50 $326 • No preferred, no JVs, no private placements $145 $55 $80 2
Slide 5: DiamondRock Action Plan
DiamondRock Action Plan Bank Debt: Seek covenant relief 2020 Maturity: Seek extension of Salt Lake City Mortgage Balance Sheet CMBS Debt: Seek relief to use FF&E escrow for working capital and waive cash traps Reduced Capital Reduced capital expenditures by 65% Expenditures Non-essential capital exp
Slide 6: A Closer Look At Staffing Models
A Closer Look At Staffing Models Manager Hourly Total FTE Average Monthly Headcount Headcount Headcount Payroll (in 000’s) Total 736 3,822 $25,550 Portfolio 4,559 Prior Staffing Average 24 123 147 $851 Manager Hourly Total FTE Projected April Headcount Headcount Headcount Payroll (in 000’s) Total 19
Slide 7: Scaling Back Hotel Operations
Scaling Back Hotel Operations 4/10 Current Chicago 4/6 Marriott Charleston 3/31 Renaissance Chicago Gwen Palomar Phoenix Five closures due to Orchards Inn government mandates Burlington 3/29 Hilton The Lexington Hotel 15 Hilton Garden Elective 3/27 Inn Times Sq New York Suspended Courtyard 5th 3/25
Slide 8: Appendix
APPENDIX 8 Havana Cabana Key West
Slide 9: Hotel Occupancy
Hotel Occupancy Trailing 7 Day Average Portfolio Occupancy 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2/29/2020 3/10/2020 3/20/2020 3/30/2020 4/9/2020 4/19/2020 4/29/2020 For the week ending May 2nd, average occupancy of operating hotels was 19% 9
Slide 10: Group Cancellations
Group Cancellations % Share of Weekly Cancellations Mar 16 Mar 23 Mar 27 Apr 3 Apr 10 Apr 17 Apr 24 May 1 May 8 Total to Date February 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% March 55% 18% 9% -3% 0% 0% 0% 0% 0% 19% April 29% 46% 19% 6% 2% 0% 10% 0% 15% 21% May 8% 21% 56% 36% 25% 3% 28% 7% 23% 20% June 5% 17%
Slide 11: Operating Statistics
Operating Statistics Pro Forma Operating Statistics - First Fiscal Quarter ADR Occupancy RevPAR Hotel Adjusted EBITDA Margin 1Q 2020 1Q 2019 B/(W) 1Q 2020 1Q 2019 B/(W) 1Q 2020 1Q 2019 B/(W) 1Q 2020 1Q 2019 B/(W) Atlanta Alpharetta $ 173.72 $ 177.33 (2.0%) 51.4% 70.5% (19.1%)$ 89.35 $ 124.93 (28.5%)
Slide 12: EBITDA Reconciliation 1st Quarter 2020
EBITDA Reconciliation 1st Quarter 2020 (1) Plus: Plus: Plus: Equals: Net Income / Interest Non-Cash Hotel Adjusted Total Revenues Depreciation (Loss) Expense Adjustments(2) EBITDA Atlanta Alpharetta 3,980 744 374 - - 1,118 Bethesda Marriott Suites 2,735 (2,097) 529 - 1,514 (54) Boston Westin 16,130
Slide 13: Schedule of Mortgages
Schedule of Mortgages (1) # of Principal Property Location (2) (2) Maturity Keys Balance Per Key Salt Lake City Marriott Downtown(3) Salt Lake City, UT 510 52,968 104 Nov 2020 Westin Washington, DC City Center Washington, DC 410 59,988 146 Jan 2023 The Lodge at Sonoma, a Renaissance Resort & Spa Son
Slide 14: DiamondRock Hospitality
DIAMONDROCK HOSPITALITY
Slide 15: Forward Looking Statements
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,” “anticipate,” “plan,” “estimate,” “project,” “will,” “intend” or other s
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