Diamondrock Hospitality Company · NASDAQ:DRH
Diamondrock Hospitality — Investor Presentation (June 2023)
19 slides from Diamondrock Hospitality's investor presentation, Jun 2, 2023
Slide 1: Investor Presentation June 2023
INVESTOR PRESENTATION JUNE 2023 LAKE AUSTIN SPA RESORT
Slide 2: Forward Looking Statements & Use of Non-GAAP Financial Measures
FORWARD LOOKING STATEMENTS & USE OF NON-GAAP FINANCIAL MEASURES 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,” “anticip
Slide 3: Why DiamondRock
WHY DIAMONDROCK 1 2 3 4 5 6 7 3 RECORD PERFORMANCE FORTRESS BALANCE SHEET LIQUID PORTFOLIO URBAN FOOTPRINT ADVANTAGE LEISURE: STRONG SECULAR FUNDAMENTALS ROI PROJECTS ESG EXCELLENCE
Slide 4: Record Performance
RECORD PERFORMANCE 60% 70% 80% 90% 100% 110% 120% DRH HST APLE XHR PEB RLJ SHO PK 2022A 2023E 2024E Note: Consensus EBITDA estimates are per Factset database as of 4/26/23, average excludes DRH ROBUST Q1 COMPARABLE RESULTS INDEX YEAR 2019 PEER OUTPERFORMANCE DISCOUNTED VALUATION $185.26 +16.9% REVPA
Slide 5: Fortress Balance Sheet: Competitive Advantage
NO MATERIAL NEAR-TERM MATURITIES FORTRESS BALANCE SHEET: COMPETITIVE ADVANTAGE Note: Mortgages reflect balance at scheduled maturity, $585M Total Available Liquidity 35% Total Debt to Gross Book Value 3.3x Net Debt to TTM EBITDANote: As of March 31, 2023 LOW LEVERAGE VS PEERS Source: Baird Comp Shee
Slide 6: Most Liquid Portfolio Amongst Peers
MOST LIQUID PORTFOLIO AMONGST PEERS BENEFITS OF SHORT-TERM AGREEMENTS ■ Asset Liquidity Enhanced ■ Superior Cost Controls ■ 50 to 100 bps Better Exit Cap Rate ■ Enhanced Flexibility to Optimize Performance VALUATION PREMIUM: UNENCUMBERED VS. ENCUMBERED HOTELS 15% 20% TO 0% 20% 40% 60% 80% 100% DRH P
Slide 7: Urban Footprint Advantage
URBAN FOOTPRINT ADVANTAGE (1) As of March 1, 2023. Source: Convention & Visitor Bureaus 60% % OF URBAN BY FY’22 REVENUE <1% % OF EBITDA EXPOSURE IN SLOWER RECOVERY URBAN MARKETS (SAN FRANCISCO, LOS ANGELES, PORTLAND) 49% % OF ROOMS THAT ARE IN 400+ KEY HOTELS DRH URBAN STATS LEADING URBAN EXPOSURE M
Slide 8: Leisure: Long-Term Outperformer
LEISURE: LONG-TERM OUTPERFORMER 8 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20 55 and over 35 to 54 Under 35 Year 2020: 46% 2000: 33% 2020: 34% 2000: 42% 2000: 25% 2020: 20% 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20 Year 2020: 45% 2000: 36% 2020: 41% 2000: 49% 2000: 15% 2020: 14
Slide 9: Leisure: Proven Winner, Less Risk
LEISURE: PROVEN WINNER, LESS RISK Leisure-focused markets have consistently outperformed during economic crises Resorts benefit from higher RevPAR starting point relative to 2019 Source: CBRE Hotels 9
Slide 10: Recent Repositionings Delivering Value
RECENT REPOSITIONINGS DELIVERING VALUE +46% RevPAR Increase vs 2019 COMPLETED 2021 COMPLETED 2021 COMPLETED 2021 COMPLETED 2022 Significant Increase in Net Asset Value +75% Hotel Adjusted EBITDA vs 2019 10
Slide 11: DRH Timeline
DRH TIMELINE • Commenced 4 Repositionings: ⁻ Sheraton Key West (Margaritaville) ⁻ JW Marriott Cherry Creek (Hotel Clio) ⁻ Sonoma Renaissance (Autograph) ⁻ Vail Marriott (Luxury Collection) • Unencumbered 6 Marriott Management Agreements • Acquired 3 Resorts ($180MM): ⁻ Tranquility Bay Resort ⁻ Shore
Slide 12: ROI Projects in Process
ROI PROJECTS IN PROCESS PROPERTY EST. EBITDA YIELD SCOPE Hilton Boston Downtown Faneuil Hall Hilton Burlington Lake Champlain Bourbon Orleans Hotel 17% 31% Conversion from Hilton Brand to Independent Lifestyle Conversion to Curio Brand and New Celebrity Chef/Restaurant Repositioning and Rebranding t
Slide 13: Potential Longer Term Capital Projects
COURTYARD DENVER DOWNTOWNLAKE AUSTIN SPA RESORT ORCHARDS INN 13 POTENTIAL LONGER TERM CAPITAL PROJECTS Repositioning to Integrate with L’Auberge de Sedona Exploring Adding More Waterfront Guest Rooms Courtyard Denver Downtown Franchise Expiration in 2027 Potential Upbranding and Expansion
Slide 14: Potential Longer Term Capital Projects
THE LANDING WESTIN BOSTON SEAPORT HENDERSON PARK INN 14 POTENTIAL LONGER TERM CAPITAL PROJECTS The Westin Boston Seaport District Franchise Expiration in 2026 Value Creation Opportunity Currently 37 Rooms Entitled for 135 Ocean- Front Units Exploring Adding 20% More Guest Rooms
Slide 15: Robust ROI Pipeline: ~$90MM of ROI Projects at 20%+ Est. EBITDA Yield
ROBUST ROI PIPELINE: ~$90MM OF ROI PROJECTS AT 20%+ EST. EBITDA YIELD 15 1Estimated Capital Spend and Estimated Incremental EBITDA based upon management proformas PROPERTY PROJECT ESTIMATED CAPITAL SPEND1 UNDERWRITTEN INCREMENTAL EBITDA1 ESTIMATED EBITDA YIELD ESTIMATED COMPLETION LODGE AT SONOMA Au
Slide 16: Appendix
Henderson Beach Resort APPENDIX
Slide 17: DiamondRock at a Glance
DIAMONDROCK AT A GLANCE 9,607 ROOMS 35 PROPERTIES 24 GEOGRAPHIC MARKETS DIVERSIFIED GEOGRAPHY 17 DIVERSIFIED PROPERTIES FINANCIAL SUMMARY Net Debt to TTM EBITDA Total Debt $1.2B 3.8x Total Debt to Gross Book Value 35% TTM Revenue $1.1B TTM Corporate Adj. EBITDA $291MM Q1 2023PORTFOLIO Note: Proforma
Slide 18: High Quality Portfolio in Key Urban Markets
HIGH QUALITY PORTFOLIO IN KEY URBAN MARKETS DENVER, CO SAN DIEGO, CA COURTYARD DENVER DOWNTOWN WESTIN WASHINGTON, D.C. CITY CENTER WESTIN SAN DIEGO BAYVIEW URBAN GATEWAY SALT LAKE CITY, UT SALT LAKE CITY MARRIOTT DOWNTOWN URBAN LIFESTYLE BOURBON ORLEANS HOTELHOTEL EMBLEM HILTON BURLINGTON LAKE CHAMP
Slide 19: Strong Resort Market Presence
STRONG RESORT MARKET PRESENCE SAUSALITO, CA FORT LAUDERDALE, FL MARATHON, FL SEDONA, AZ DESTIN, FL CAVALLO POINT TRANQUILITY BAY RESORT VAIL, CO DESTIN, FL THE HYTHE, A LUXURY COLLECTION HOTEL HENDERSON PARK INN SEDONA, AZ SONOMA, CALAKE TAHOE, CA LUXURY RESORT LIFESTYLE RESORT THE LODGE AT SONOMA R
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