DiamondRock Hospitality Company (NYSE:DRH) Q4 2020 Results Earnings Conference Call February 25, 2021 9:00 AM ET Company Participants Briony Quinn - Senior Vice President and Treasurer Mark Brugger - President, Chief Executive Officer, Director Jeff Donnelly - Executive Vice President, Chief Financial Officer Tom Healy - Chief Operating Officer, Executive Vice President of Asset Management Conference Call Participants Austin Wurschmidt - KeyBanc Smedes Rose - Citi Thomas Allen - Morgan Stanley Anthony Powel ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________ FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-32514 DIAMONDROCK HOSPITALITY COMPANY (Exact Name of Registrant as Specified in Its Charter) Maryland 20-1180098 (State of Incorpo ...

DiamondRock Hospitality Company (NYSE:DRH) Q3 2020 Earnings Conference Call November 6, 2020 9:00 AM ET Company Participants Briony Quinn - Senior Vice President & Treasurer Mark Brugger - President & Chief Executive Officer Jeff Donnelly - Executive Vice President & Chief Financial Officer Conference Call Participants Rich Hightower - Evercore Austin Wurschmidt - KeyBanc Chris Woronka - Deutsche Bank Lukas Hartwich - Green Street Stephen Grambling - Goldman Sachs Anthony Powell - Barclays Operator Welcome ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission File Number 001-32514 DIAMONDROCK HOSPITALITY COMPANY (Exact Name of Registrant as Specified in Its Charter) Mary ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission File Number 001-32514 DIAMONDROCK HOSPITALITY COMPANY (Exact Name of Registrant as Specified in Its Charter) Maryland ...

DiamondRock Hospitality Company (NYSE:DRH) Q2 2020 Earnings Conference Call August 7, 2020 9:00 AM ET Company Participants Briony Quinn - SVP and Treasurer Mark Brugger - President and CEO Jeff Donnelly - CFO Thomas Healy - COO and EVP, Asset Management Troy Furbay - EVP and CIO Conference Call Participants Austin Wurschmidt - KeyBanc Capital Markets Chris Woronka - Deutsche Bank Anthony Powell - Barclays Daniel Assad - Bank of America Thomas Allen - Morgan Stanley Michael Bellisario - Baird Lukas Hartwich ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________ FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-32514 DIAMONDROCK HOSPITALITY COMPANY (Exact Name of Registrant as Specified in Its Charter) Maryland 20-1180098 (State of In ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________ FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-32514 | --- | --- | --- | --- | |------------------------------------------|------------------------------------------------------ ...

Financial Data and Key Metrics Changes - The company reported fourth quarter adjusted FFO of $54.7 million, which is 9% ahead of the midpoint of implied guidance, and adjusted FFO per share was $0.27, exceeding guidance by $0.02 [12][31] - For the full year 2019, adjusted FFO was $217 million, 2.1% ahead of guidance, and adjusted FFO per share was $1.07, $0.03 above the midpoint of guidance [13][31] - Fourth quarter adjusted EBITDA was $62.7 million, surpassing the high-end of implied guidance, while full-year adjusted EBITDA was $260.4 million, exceeding 2018 by $6.3 million [12][31] Business Line Data and Key Metrics Changes - Comparable RevPAR for the portfolio increased by 1.5% in the fourth quarter, driven by a 1.1% increase in average daily rate and a 0.4% increase in occupancy [10][22] - Food and beverage revenues grew by 6.2% for the year, driven by strong banquet activity and recent repositionings of bars and restaurants [11] - Comparable hotel adjusted EBITDA increased by 0.7% in 2019, despite less than 1% RevPAR growth [14] Market Data and Key Metrics Changes - The U.S. lodging industry experienced overall RevPAR growth of 0.7% in the fourth quarter, with demand in major markets increasing by 3.2% [8][9] - The leisure segment in the resort portfolio excelled, with RevPAR up 4.4%, while DiamondRock's destination resorts generated 7.6% RevPAR growth [26][27] - The company expects 2020 RevPAR growth in the range of negative 50 basis points to positive 1%, while total RevPAR is expected to outperform with an increase from positive 50 basis points to positive 3% [17][18] Company Strategy and Development Direction - The company is focusing on increasing its portfolio of destination resorts, which are expected to outperform the national average for the lodging sector [28][35] - DiamondRock has identified $87 million of value-add ROI projects expected to generate an incremental $16 million to $18 million of EBITDA [37] - The company plans to reopen Frenchman's Reef as two distinct resorts, targeting a reopening at the end of 2020, with expectations of $25 million in EBITDA by 2023 [38][16] Management's Comments on Operating Environment and Future Outlook - The management noted that while the economy is expanding, the ongoing trade war with China is impacting corporate demand [6][7] - The company remains optimistic about its positioning in 2020, expecting strong group pace and favorable resort footprint to drive performance [34][19] - Management is closely monitoring the potential impact of the coronavirus on operations but has not adjusted guidance based on it [20][17] Other Important Information - The company had $122.5 million of unrestricted cash on hand and $1.1 billion of total debt outstanding at a weighted average interest rate of 3.8% [32] - DiamondRock announced a dividend of $0.125 per share, marking its 50th regular common dividend [33] Q&A Session Summary Question: Impact of domestic travel avoidance on resort bookings - Management indicated that they have not seen any weakness in destination resort bookings for January and February [42] Question: Concerns about future supply growth in resorts - Management expressed confidence that supply growth in their markets is unlikely due to geographical constraints and legal restrictions [43] Question: Expectations for group performance in 2020 - Management expects group booking pace to settle in the mid-to-high single digits, with destination resorts outperforming the national average [46][47] Question: Wage and benefits increases - Management noted that wage increases are expected to be around 5%, with benefits up 5% to 6% in 2020 [53] Question: Share repurchase strategy - Management remains committed to share repurchases, believing the stock is trading at a discount to NAV [59] Question: Remaining out-of-pocket spend for Frenchman's Reef - Management estimated remaining out-of-pocket costs for Frenchman's Reef to be around $50 million, with potential increases [61]

Financial Data and Key Metrics Changes - DiamondRock's third quarter adjusted FFO was $55.3 million, with adjusted FFO per share at $0.27, in line with expectations [9] - Third quarter adjusted EBITDA was $67.5 million, towards the high end of guidance [9] - Comparable hotel adjusted EBITDA margins contracted by 58 basis points, but only 15 basis points when excluding Hurricane Dorian's disruption and a one-time benefit from business interruption insurance [26] Business Line Data and Key Metrics Changes - The portfolio reported a 1.6% increase in comparable RevPAR, exceeding competitive sets by over 400 basis points [8] - Comparable total RevPAR increased by 3.1%, driven by growth in outside room spend by groups and other revenue sources [8] - Group and business transient demand increased by 2% and 3.5% respectively, contributing to revenue growth [10] Market Data and Key Metrics Changes - RevPAR growth in the U.S. was up 0.7% in the third quarter, with the top 25 markets declining by 0.4% [7] - Demand in major markets increased by 2.3%, while all other markets registered 1.3% growth [7] - Over 60% of sub-markets reported positive RevPAR growth, with two-thirds of hotels outperforming their sub-markets [20] Company Strategy and Development Direction - The company plans to increase its portfolio allocation to destination resorts, capitalizing on a secular trend towards experiential travel [15] - DiamondRock has identified $90 million in ROI projects expected to generate an incremental $17 million to $19 million in EBITDA [38] - The company is exploring the opportunistic sale of one or two assets to lock in attractive private market pricing [40] Management's Comments on Operating Environment and Future Outlook - The current economic expansion is tempered by uncertainty in the political landscape and trade environment, affecting near-term growth outlook [6] - The company expects supply pressures in urban markets to persist, while destination resort markets will have low or no supply [7] - Booking pace for 2020 is strong, currently up over 17%, with significant growth in key group hotels [11] Other Important Information - The company announced a dividend of $0.125 per share, paid on October 11 [30] - DiamondRock repurchased 300,000 shares at an average price of $9.96 per share during the third quarter [29] - The balance sheet remains strong, with $26.7 million in unrestricted cash and $1.1 billion in total debt at a weighted average interest rate of 3.9% [27] Q&A Session Summary Question: What is the strongest segment right now, leisure or corporate? - Management indicated that destination resorts are outperforming due to strong consumer sentiment, and they expect this trend to continue [44] Question: How is the buyout program impacting RevPAR? - Management is encouraged by changes made by Marriott, which are expected to help gain market share going into 2020 [46] Question: What are the expected cost increases for 2020? - Management anticipates wage pressure and expects total expenses to come in at around 3% for the full year, with potential increases in 2020 [55] Question: What is the strategy regarding asset sales and resort exposure? - Management is looking to sell some urban assets to redeploy capital into resort acquisitions, maintaining a balanced market exposure [51] Question: How does Google promoting its own travel content impact revenue strategy? - Management believes that while Google is another intermediary, they retain control over customer experience, which is crucial for driving revenue [71]