Diamondrock Hospitality Company · NASDAQ:DRH
Diamondrock Hospitality — Investor Presentation (September 2023)
17 slides from Diamondrock Hospitality's investor presentation, Sep 12, 2023
Slide 1: Investor Presentation September 2023 - The Dagny Boston
INVESTOR PRESENTATION SEPTEMBER 2023 THE DAGNY BOSTON
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: Key Takeaways
KEY TAKEAWAYS KEY HIGHLIGHTS • ROI Positioning: The Dagny Boston debuted on 8/1/23 as a repositioned independent lifestyle hotel from a previously Hilton branded property • Acquisition: Closed on Chico Hot Springs Resort on 8/2/23, a lifestyle resort in Paradise Valley, Montana and DRH’s 15th indepe
Slide 4: Peer Outperformance
PEER OUTPERFORMANCE 70% 75% 80% 85% 90% 95% 100% 105% 110% DRH APLE HST XHR PK RLJ SHO PEB 2023E 2024E Note: Consensus EBITDA estimates are per Factset database as of 9/6/23, average excludes DRH INDEX YEAR 2019 2023 Average 86% 2024 Average 89% EBITDA CONSENSUS ESTIMATES INDEXED TO 2019 4
Slide 5: No Material Near-Term Maturities, Fortress Balance Sheet
NO MATERIAL NEAR-TERM MATURITIES FORTRESS BALANCE SHEET Note: Mortgages reflect balance at scheduled maturity, $600M+ Total Available Liquidity 30% Total Debt to Gross Book Value 3.8x Net Debt + Preferred to TTM EBITDANote: As of June 30, 2023 DEBT MATURITY SCHEDULE ($MM) SIGNIFICANT LIQUIDITY AND D
Slide 6: Most Liquid Portfolio Amongst Peers
MOST LIQUID PORTFOLIO AMONGST PEERS BENEFITS OF SHORT-TERM AGREEMENTS ■ Terminable at Will ■ Asset Liquidity Enhanced ■ Superior Cost Controls ■ 50 to 100 bps Better Exit Cap Rate ■ Enhanced Flexibility to Optimize Performance UNENCUMBERED VS. ENCUMBERED HOTELS 15% 20% TO 0% 20% 40% 60% 80% 100% DRH
Slide 7: Chico Hot Springs Resort Acquisition
CHICO HOT SPRINGS RESORT ACQUISITION ACQUISITION DATE 8/1/23 PURCHASE PRICE $33.0 MILLION LOCATION Paradise Valley/Yellowstone, MT NUMBER OF ROOMS 117 NUMBER OF ACRES 748 KEY DEAL HIGHLIGHTS ■ Acquisition of an authentic western-style, geothermal hot spring resort located in Paradise Valley, a major
Slide 8: The Dagny Repositioning
THE DAGNY REPOSITIONING • The Dagny debuted on August 1, 2023 • The 403-room Hilton Boston was converted to an Art Deco inspired, independent lifestyle hotel • The $32MM investment includes a comprehensive renovation of luxury guestrooms and bathrooms, enhanced meeting facilities, a state-of-the-art
Slide 9: 2023 ROI Projects
2023 ROI PROJECTS 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 to High
Slide 10: Potential Longer Term Capital Projects
COURTYARD DENVER DOWNTOWNLAKE AUSTIN SPA RESORT ORCHARDS INN 10 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 11: Potential Longer Term Capital Projects
THE LANDING WESTIN BOSTON SEAPORT HENDERSON PARK INN 11 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 12: DRH Portfolio Strategy
DRH PORTFOLIO STRATEGY • Westin Boston Seaport • Westin San Diego Bayview • Westin Washington, DC City Center • Chicago Marriott Magnificent Mile • Salt Lake City Marriott Downtown • The Worthington LONG-TERM SECULAR DRIVER: URBAN LIFESTYLE/RESORT GROUP DEMAND RECOVERY: BIG GROUP HOTELS EMPIRE STATE
Slide 13: ISS ESG Rankings
ISS ESG RANKINGS(2) ISS-ESG CORPORATE RANKING Currently Ranked in Top 1% of all US Real estate companies DiamondRock ranks in the top 5% of the Worldwide Real Estate Sector, earning an ISS ESG Prime designation 2ENVIRONMENTAL 3SOCIAL 1GOVERNANCE GRESB ANNUAL RESULTS 2017 2018 2019 2020 2021 2022 DRH
Slide 14: Appendix
Henderson Beach Resort APPENDIX
Slide 15: DiamondRock at a Glance
DIAMONDROCK AT A GLANCE DIVERSIFIED GEOGRAPHY 15 DIVERSIFIED PROPERTIES FINANCIAL SUMMARY Net Debt2 to TTM EBITDA Total Debt1 $1.2B 3.4x Total Debt to Gross Book Value 30% TTM Revenue $1.1B TTM Corporate Adj. EBITDA $285MM Q2 2023PORTFOLIO % Fixed Rate3 67% 9,724 36 24 ROOMS GEOGRAPHIC MARKETS PROPE
Slide 16: 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
Slide 17: High Quality Portfolio in Key Gateway Markets
HIGH QUALITY PORTFOLIO IN KEY GATEWAY 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 CHA
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