DiamondRock Hospitality (DRH) reported $263.55 million in revenue for the quarter ended December 2023, representing a year-over-year increase of 3.3%. EPS of $0.18 for the same period compares to $0.07 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $259.06 million, representing a surprise of +1.73%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.18.While investors scrutinize revenue and earnings changes year-over-year and how they compare wi ...

DiamondRock Hospitality (DRH) came out with quarterly funds from operations (FFO) of $0.18 per share, in line with the Zacks Consensus Estimate. This compares to FFO of $0.23 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this hotel and resort real estate investment trust would post FFO of $0.23 per share when it actually produced FFO of $0.26, delivering a surprise of 13.04%.Over the last four quarters, the company has surpassed consensus FFO es ...

Analysts on Wall Street project that DiamondRock Hospitality (DRH) will announce quarterly earnings of $0.18 per share in its forthcoming report, representing a decline of 21.7% year over year. Revenues are projected to reach $259.06 million, increasing 1.6% from the same quarter last year.The consensus EPS estimate for the quarter has undergone a downward revision of 6.3% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their init ...

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, 2023 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) Mar ...

DiamondRock Hospitality Company (NYSE:DRH) Q3 2023 Earnings Conference Call November 1, 2023 10:00 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 Austin Wurschmidt - KeyBanc Capital Markets Smedes Rose - Citi Duane Pfennigwerth - Evercore ISI Dori Kesten - Wells Fargo Securities Chris Woronka - Deutsche Bank Floris Van Dijkum - Compas ...

Financial Data and Key Metrics Changes - Total revenues in Q2 2023 were $289 million, nearly 1% ahead of 2022, with hotel adjusted EBITDA at $93.6 million, which was $3.2 million ahead of 2019 [78][30][29] - Portfolio RevPAR increased by 0.5%, with total revenue up 0.9% in the quarter, driven by a 7.1% increase in urban hotels and an 8.3% decrease in the resort portfolio [29][30] - Adjusted EBITDA was $85.8 million, impacted by disruptions and property tax refunds from the previous year [30][31] Business Line Data and Key Metrics Changes - Urban hotels experienced nearly flat performance compared to 2019, down just 0.7%, while resorts were robustly 33% higher [29] - Group room nights increased by 4.6% compared to Q2 2022, but were still 11.1% behind 2019 levels [88] - Business transient demand showed mixed results, with strong performance in cities like New York but continued weakness in San Francisco [109][95] Market Data and Key Metrics Changes - Group demand is solid in Boston, San Diego, and Washington, D.C., but Chicago, the largest group market, is expected to be weaker in the second half of the year [39][39] - Florida continues to show a year-over-year trend, with RevPAR for non-Florida hotels increasing by 3.7% [29] - The leisure segment in the U.S. is projected to hit a new record next year, with occupancy expected to exceed 1.3 billion hotel nights [47][46] Company Strategy and Development Direction - The company is focusing on capital allocation towards high IRR opportunities, including internal ROI projects and share repurchases [34][35] - The acquisition of Chico Hot Springs Resort in Montana is seen as a strategic move to enhance the portfolio, with plans to implement best practices and modern revenue management systems [54][55] - The company remains committed to a strong balance sheet with low leverage and significant liquidity, allowing for opportunistic investments [37][36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of business travel and the normalization of leisure travel patterns, expecting improvements post-Labor Day [95][39] - The company anticipates that renovations and repositionings will negatively impact revenue growth in the second half of the year by approximately $4 million [41] - Management highlighted the importance of demographic changes driving leisure travel, with a significant increase in travel by millennials and baby boomers [91] Other Important Information - The company has completed or is nearing completion of $58 million in ROI repositionings at 16 of its 36 properties [51] - The company is exploring dispositions to fund additional repurchases and future growth opportunities [36] - The impact of increased property insurance costs and property tax comparisons is expected to be a headwind in the second half of 2023 [43][42] Q&A Session Summary Question: What is the expected year-over-year impact from ROI projects and acquisitions? - Management estimates a few million dollars from acquisitions and additional contributions from ROI projects, with specific expectations for Chico and Dagny [66][67] Question: How is the performance of the ex-Florida portfolio and potential for recovery? - Management noted that the Florida Keys are stabilizing, with expectations for normalization by late 2023 [68][69] Question: What is the outlook for group bookings in Chicago? - Management indicated that 2024 looks strong for Chicago, with solid bookings expected [131] Question: How does the company view the acquisition environment? - The acquisition volume is down significantly, but the company sees advantages as a public entity with lower borrowing costs [119][120] Question: What are the plans for the new acquisition in Montana? - The company plans to enhance the property and build relationships within the community for future opportunities [122][121]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 For the transition period from _________ to _________ OR Commission File Number: 001-32514 DIAMONDROCK HOSPITALITY COMPANY (Exact Name of Registrant as Specified in Its Charter) Maryland ...

DiamondRock Hospitality Company (NYSE:DRH) Q1 2023 Earnings Conference Call May 5, 2023 9:00 AM ET Company Participants Briony Quinn - Senior Vice President and Treasurer Mark Brugger - President & Chief Executive Officer Jeff Donnelly - Executive Vice President & Chief Financial Officer Justin Leonard - Executive Vice President & Chief Operating Officer Conference Call Participants Austin Wurschmidt - KeyBanc Capital Markets Dori Kesten - Wells Fargo Duane Pfennigwerth - Evercore ISI Smedes Rose - Citi Flo ...

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, 2023 OR (240) 744-1150 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Securities Act: | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | | --- | --- | --- | | Common stock, $0.01 par ...

Portfolio and Operations - As of December 31, 2022, DiamondRock Hospitality Company owned a portfolio of 35 premium hotels and resorts with a total of 9,607 guest rooms located in 24 different markets in the United States[20]. - Over 98% of revenues for the year ended December 31, 2022, were derived from core urban and resort destination hotels[31]. - The portfolio is primarily composed of luxury and upper upscale hotels located in high barrier-to-entry markets[30]. - As of December 31, 2022, 31 out of 35 hotels are unencumbered by mortgage debt, providing significant balance sheet flexibility[39]. - As of December 31, 2022, the company employed 30 full-time employees, with all hotel operations managed by third-party companies[60]. - 16 out of 35 hotels operate under Marriott brands, and 4 under Hilton brands, indicating a concentration risk in brand reliance[112]. - 20 out of 35 hotels are under franchise agreements with Marriott or Hilton, which subjects the company to franchise brand risks and compliance costs[113]. - The hotel management agreements generally renew automatically unless the manager opts not to renew, with various expiration dates and renewal terms[204]. Financial Strategy and Performance - The strategy includes aggressive asset management, prudent financial strategy, and disciplined capital allocation to achieve long-term stockholder returns[22]. - The company maintains a conservative capital structure with limited near-term debt maturities and plans to finance long-term growth through equity and staggered debt issuances[40]. - The company executed amendments to credit agreements in 2020, 2021, and 2022 to waive financial covenants, exiting these waivers in Q2 2022 and currently in compliance with all financial covenants[137]. - The company had $2.9 million held in cash traps as of December 31, 2022, which could affect liquidity and distributions to stockholders if triggered in the future[139]. - Increased borrowing costs throughout 2022 may continue to rise as the Federal Reserve addresses inflation, impacting cash flow and distributions to stockholders[143]. - The company faces refinancing risk due to limited principal amortization, requiring balloon payments at loan maturity, which could lead to unfavorable options if refinancing is difficult[140]. - Future debt service obligations may require the company to liquidate properties, jeopardizing its ability to maintain REIT tax status and make distributions to stockholders[143]. - Financial covenants in existing and future debt agreements may limit operational flexibility and the ability to make distributions to stockholders[136]. Market and Economic Risks - The company is susceptible to risks such as increased competition in the lodging industry and adverse economic conditions affecting travel demand[17]. - The lodging industry is highly cyclical and linked to macroeconomic indicators such as U.S. GDP growth and consumer confidence, which can adversely affect revenues and profitability[80]. - Significant competition in hotel markets can lead to rapidly decreasing RevPAR and profitability if there is an increase in the supply of new hotel rooms[81]. - Seasonal volatility in hotel revenues can cause fluctuations in financial performance, affecting cash flows and distributions to stockholders[82]. - The rise of teleconferencing technology may decrease demand for business-related travel, adversely affecting hotel occupancy and revenues[86]. - Economic factors such as interest rates, tax laws, and competitive hotel supply can significantly impact the company's ability to sell properties at acceptable prices[89]. Sustainability and Corporate Responsibility - In 2022, the company was ranked first in sustainability performance as the America's Regional Sector Leader for Hotels by the GRESB Real Estate Assessment[41]. - The company published its annual Corporate Responsibility Report in December 2022, detailing ESG policies and performance targets[42]. - The company engaged an independent third party to verify energy and water consumption data starting in 2021, reflecting a commitment to transparency[44]. - The company may incur increased costs due to climate change regulations and shifts in consumer preferences for sustainable accommodations, impacting operational costs and investments[153]. Insurance and Liabilities - The company carries comprehensive insurance covering all properties, including liability and business interruption insurance[62]. - The company has comprehensive insurance for its hotels, but coverage may not be sufficient for all potential losses, impacting financial stability[105]. - The company is exposed to unknown liabilities related to recently sold or acquired hotels, which could adversely impact financial performance[94]. - The presence of harmful mold in hotel properties could lead to costly remediation efforts, reducing cash available for distribution[155]. Human Capital and Labor Issues - The company prioritizes employee well-being and diversity in its human capital management strategies[61]. - Labor shortages may impact hotel operations and guest satisfaction, potentially leading to increased labor costs[128]. - Changes in local jurisdictions regarding minimum wage laws could significantly increase operational costs for the company[129]. - The Department of Labor's regulations increasing overtime eligibility may result in higher operating costs[130]. Taxation and Regulatory Compliance - The applicable withholding rate for FIRPTA Withholding under clause (ii) is currently 15%, and under clause (iii) it is 21%[69]. - Ordinary REIT dividends paid to a non-U.S. stockholder generally incur a 30% withholding rate on gross amounts unless reduced by treaty[69]. - The company expects to maintain its qualification as a REIT for the taxable year ended December 31, 2022, but cannot assure continued compliance due to complex regulations[157]. - If the company fails to qualify as a REIT, it would be subject to U.S. federal income tax at corporate rates, potentially requiring asset sales or borrowing[158]. - To remain a REIT, the company must distribute at least 90% of its taxable income, which may necessitate borrowing or selling assets if cash flow is insufficient[160]. - The formation of taxable REIT subsidiaries (TRSs) increases overall tax liability, as TRSs are subject to federal and state income tax[161]. - The company may face increased property taxes due to rate changes or reassessments, negatively impacting cash flow and financial condition[167]. Management and Governance - The company relies on third-party hotel management companies to operate its properties, which impacts its results of operations[23]. - The management of hotel properties is conducted by third-party companies, which limits the company's control over daily operations and overall performance[109]. - The company may face significant disruptions if it needs to replace hotel management companies due to non-terminable management agreements[110]. - The inability to maintain good relationships with third-party hotel managers and franchisors could adversely affect the company's operational results and expansion opportunities[111]. - The board of directors has the authority to amend major policies without stockholder votes, limiting stockholder control over business decisions[198]. Cybersecurity and Technology Risks - The company and its hotel managers rely on information technology for operations, facing risks from cyber-attacks and security breaches that could disrupt operations and compromise confidential information[194]. - Many hotel managers carry cyber insurance policies, and the company has supplemental coverage, but potential losses from cyber incidents could still impact operations[196]. - The company has taken commercially reasonable steps to protect its systems, but there is no assurance that these measures will prevent security breaches[194]. Stockholder Interests and Market Dynamics - The company has issued 4,760,000 shares of Series A Preferred Stock with an aggregate liquidation preference of approximately $119.0 million and annual dividends of about $9.8 million[187]. - The board of directors intends to pay quarterly dividends representing at least 90% of the REIT taxable income, but past distributions were suspended during the COVID-19 pandemic and resumed in October 2022[181]. - Future issuances of common stock or Series A Preferred Stock may depress the market price and dilute existing stockholders[185]. - The market price of the common stock has been volatile, influenced by factors such as investor interest, economic conditions, and financial performance[184]. - Changes in market interest rates could make the returns on investment in the company's common stock less attractive, potentially leading to a decline in market price[183]. - The company may be unable to generate sufficient cash flows to make expected distributions to stockholders in the future[180]. - The conversion rights of Series A Preferred Stock could dilute common stockholder ownership and adversely affect the market price of common stock[188]. - The company has entered into tax protection agreements that may limit its ability to sell certain properties and require maintaining specific debt levels[191]. - The board of directors has the authority to issue up to 400,000,000 shares of common stock and 10,000,000 shares of preferred stock, which could affect control and market dynamics[175]. - The company’s share repurchase program may not enhance long-term stockholder value and could increase stock price volatility[190].