Jeffrey Donnelly Appointed Chief Executive Officer; Briony Quinn Appointed Chief Financial Officer; Justin Leonard Appointed President Appointments Capitalize on DiamondRock's Strong Bench and Proven Talent to Drive Continued Business Momentum Company Reaffirms 2024 Annual Guidance BETHESDA, Md., April 15, 2024 /PRNewswire/ -- DiamondRock Hospitality Company (the "Company") (NYSE: DRH), a lodging-focused real estate investment trust that owns a portfolio of 36 premium hotels and resorts in the United State ...

BETHESDA, Md., March 14, 2024 /PRNewswire/ -- DiamondRock Hospitality Company (the "Company") (NYSE: DRH) will report financial results for the first quarter 2024 after the market closes on Thursday, May 2, 2024. A conference call for investors and other interested parties is scheduled for the next day on Friday, May 3, 2024 at 9:00 a.m. Eastern Time (ET). The information to be discussed on the call will be contained in the Company's earnings release, which will be available in the Investor Relations sectio ...

BETHESDA, Md., March 4, 2024 /PRNewswire/ -- DiamondRock Hospitality Company (the "Company") (NYSE: DRH) announced that its Board of Directors has declared a quarterly cash dividend of $0.03 per common share to be paid on April 12, 2024 to shareholders of record as of March 29, 2024.  The Company's Board of Directors also declared a quarterly dividend of $0.515625 per share on its 8.250% Series A Cumulative Redeemable Preferred Stock.  The dividend is payable on March 29, 2024 to shareholders of record as o ...

Part I [Business](index=6&type=section&id=Item%201.%20Business) DiamondRock Hospitality Company, a self-advised REIT, owns 36 premium hotels and resorts, emphasizing aggressive asset management and sustainability - As of December 31, 2023, the company owns a portfolio of **36 premium hotels and resorts**, containing **9,746 guest rooms** across **25 U.S. markets**[26](index=26&type=chunk) - The company's business strategy involves aggressive asset management, prudent financial strategy, and disciplined capital allocation to high-quality lodging properties in North American urban and resort markets with high barriers-to-entry[28](index=28&type=chunk)[32](index=32&type=chunk) - DiamondRock operates through an UPREIT structure, where hotels are owned by its operating partnership, DiamondRock Hospitality Limited Partnership, with the company owning **99.7% of the common OP units**[54](index=54&type=chunk) - The company emphasizes corporate responsibility and was ranked **first in sustainability performance** as the America's Regional Listed Sector Leader for Hotels for the **fifth consecutive year** by the GRESB Real Estate Assessment in **2023**[46](index=46&type=chunk) - The hotel industry is highly competitive, with competition based on location, brand, price, and services, including alternative lodging like Airbnb and other institutional investors[58](index=58&type=chunk)[59](index=59&type=chunk)[60](index=60&type=chunk) [Risk Factors](index=14&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from volatile hotel operations, reliance on third-party managers, debt and interest rate challenges, and the critical requirements for maintaining REIT status - The business model is highly volatile due to its concentration in premium full-service hotels, which are sensitive to economic cycles, and the daily fluctuation of rates and occupancy[82](index=82&type=chunk)[83](index=83&type=chunk) - The company is highly dependent on third-party hotel management companies for daily operations and has limited ability to influence operating decisions, which could impact performance[117](index=117&type=chunk)[118](index=118&type=chunk) - A substantial number of hotels (**22 of 36**) operate under Marriott, Hilton, or IHG brands, creating a concentration risk tied to the performance and reputation of these three chains[121](index=121&type=chunk)[122](index=122&type=chunk) - The company faces significant refinancing risk, as most debt has large balloon payments at maturity, potentially forcing asset sales or default if refinancing is not on acceptable terms[150](index=150&type=chunk) - Failure to maintain REIT qualification would have severe adverse consequences, including being subject to corporate income tax and being unable to deduct dividends paid to stockholders[166](index=166&type=chunk)[167](index=167&type=chunk) [Unresolved Staff Comments](index=36&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - There are no unresolved staff comments[206](index=206&type=chunk) [Cybersecurity](index=36&type=section&id=Item%201C.%20Cybersecurity) The company manages cybersecurity risk through external experts, internal oversight, regular risk assessments, and board-level governance - The company utilizes external experts, including a virtual Chief Information Security Officer (vCISO) and a virtual Chief Information Officer (vCIO), to guide its technology and security strategy[207](index=207&type=chunk) - A cyber risk management program assesses the cybersecurity maturity of third-party property managers operating the company's hotels[209](index=209&type=chunk) - The Audit Committee oversees cybersecurity risks, receiving regular reports from senior management, with the full Board also involved in risk oversight[211](index=211&type=chunk)[212](index=212&type=chunk) [Properties](index=38&type=section&id=Item%202.%20Properties) As of December 31, 2023, the company's portfolio includes 36 hotels with 9,746 rooms, managed by third-party operators, with most agreements terminable at will and some properties subject to debt or ground leases Portfolio Overview (as of December 31, 2023) | Metric | Value | | :--- | :--- | | Total Hotels | 36 | | Total Rooms | 9,746 | | Key Markets | Chicago, Boston, New York, San Diego, Fort Lauderdale, Washington D.C. | - The majority of hotel management agreements are terminable at will by the company, with four agreements (Chicago Marriott, Hilton Garden Inn NY/Times Square, Margaritaville Key West, Worthington Renaissance) being non-terminable[217](index=217&type=chunk) - Management fees typically consist of a base fee (**1-3.5% of gross revenues**) and an incentive fee based on operating profits exceeding a specified owner's priority return[219](index=219&type=chunk)[523](index=523&type=chunk) - Nineteen hotels operate under franchise agreements, primarily with Marriott, Hilton, and IHG, requiring royalty fees based on a percentage of gross room sales and, in some cases, food and beverage sales[223](index=223&type=chunk)[527](index=527&type=chunk) - As of year-end 2023, **four hotels** are encumbered by mortgage debt, and **eight hotels** are subject to ground lease agreements[228](index=228&type=chunk)[229](index=229&type=chunk) [Legal Proceedings](index=44&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in routine litigation, with management expecting no material adverse impact on financial condition or operations - The company is involved in routine litigation but does not expect the outcomes to materially and adversely impact its financial condition, net of insurance coverage[231](index=231&type=chunk) [Mine Safety Disclosures](index=44&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[232](index=232&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=45&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on the NYSE, with its five-year total return underperforming the S&P 500 but outperforming the Dow Jones U.S. Hotels Index, and it has an active share repurchase program Five-Year Cumulative Total Stockholder Return (2018-2023) | Company/Index | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | DiamondRock Hospitality | $100.00 | $129.66 | $96.55 | $112.46 | $96.94 | $112.76 | | S&P 500 Total Return | $100.00 | $131.49 | $155.68 | $200.37 | $164.08 | $207.21 | | Dow Jones U.S. Hotels Total Return | $100.00 | $109.70 | $73.24 | $87.06 | $81.38 | $99.96 | - The company has a share repurchase program with an authorized capacity of **$200.0 million**, with approximately **$185.3 million** remaining available as of December 31, 2023, and no shares repurchased in Q4 2023[247](index=247&type=chunk) - As of December 31, 2023, there were **2,903,835 securities** to be issued under equity compensation plans, primarily performance and deferred stock units with no exercise price[244](index=244&type=chunk) [Reserved](index=47&type=section&id=Item%206.%20Reserved) This item is not applicable - Not applicable[249](index=249&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=47&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2023, total revenues increased **7.3%** to **$1.075 billion**, while net income decreased due to higher interest expense, with the company maintaining strong liquidity and planning **$100 million** in 2024 capital improvements Revenue Comparison (in thousands) | Revenue Type | 2023 | 2022 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Rooms | $717,447 | $681,269 | $36,178 | 5.3% | | Food and beverage | $259,757 | $238,234 | $21,523 | 9.0% | | Other | $97,663 | $82,000 | $15,663 | 19.1% | | **Total revenues** | **$1,074,867** | **$1,001,503** | **$73,364** | **7.3%** | Key Hotel Operating Statistics (2023 vs. 2022) | Metric | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | Occupancy % | 72.1% | 68.3% | 3.8% | | ADR | $282.11 | $289.07 | (2.4)% | | RevPAR | $203.32 | $197.50 | 2.9% | - Total hotel operating expenses increased by **12.2%** to **$781.8 million** in 2023, primarily due to acquisitions, increased occupancy, higher labor costs, property tax assessments, and insurance premiums[272](index=272&type=chunk) - Interest expense increased by **70.0%** to **$65.1 million** in 2023, mainly due to rising interest rates on variable-rate term loans and mark-to-market adjustments on interest rate swaps[278](index=278&type=chunk) - The company maintains a conservative capital structure with **$1.2 billion of debt** outstanding and **32 of its 36 hotels** unencumbered by mortgage debt as of December 31, 2023[288](index=288&type=chunk) - For 2024, the company plans to spend approximately **$100 million** on capital improvements, including repositioning the Hilton Burlington and Bourbon Orleans hotels, and renovating the Westin San Diego Bayview[308](index=308&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=61&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk on its **$0.8 billion** variable-rate debt, mitigated by **$325 million** in interest rate swaps, with a **100 basis point** change impacting annual interest expense by approximately **$4.8 million** - The primary market risk is interest rate risk, with **$0.8 billion** of the **$1.2 billion** total debt at a variable interest rate[338](index=338&type=chunk) - The company holds interest rate swaps on **$325 million** of its variable-rate debt to manage interest rate volatility[338](index=338&type=chunk) - A **100 basis point (1%)** fluctuation in interest rates on the unhedged variable rate debt would impact annual earnings and cash flows by approximately **$4.8 million**[338](index=338&type=chunk) [Financial Statements and Supplementary Data](index=62&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This item directs the reader to the company's financial statements, indexed on page F-1 - This item directs the reader to the company's financial statements, which are indexed on page F-1[339](index=339&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosures](index=62&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosures) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None reported[340](index=340&type=chunk) [Controls and Procedures](index=62&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the most recent fiscal quarter - Management concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[341](index=341&type=chunk) - No changes in internal control over financial reporting occurred during the most recent fiscal quarter that materially affected, or are reasonably likely to materially affect, these controls[342](index=342&type=chunk) [Other Information](index=62&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - None[345](index=345&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=62&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[346](index=346&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=64&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information for this item is incorporated by reference from the company's 2024 proxy statement - Information is incorporated by reference to the 2024 proxy statement[350](index=350&type=chunk) [Executive Compensation](index=64&type=section&id=Item%2011.%20Executive%20Compensation) Information for this item is incorporated by reference from the company's 2024 proxy statement - Information is incorporated by reference to the 2024 proxy statement[351](index=351&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=64&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information for this item, including equity compensation plans, is incorporated by reference from the company's 2024 proxy statement - Information is incorporated by reference to the 2024 proxy statement[352](index=352&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=64&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information for this item is incorporated by reference from the company's 2024 proxy statement - Information is incorporated by reference to the 2024 proxy statement[353](index=353&type=chunk) [Principal Accountant Fees and Services](index=64&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information for this item is incorporated by reference from the company's 2024 proxy statement, with KPMG LLP serving as the independent public accounting firm - Information is incorporated by reference to the 2024 proxy statement[354](index=354&type=chunk) - The company's independent public accounting firm is KPMG LLP, McLean, Virginia, PCAOB Auditor ID: 185[355](index=355&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=65&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This item provides an index of all financial statements, schedules, and exhibits included with the 10-K filing, such as Schedule III - Real Estate and Accumulated Depreciation - This item provides an index of all financial statements, schedules, and exhibits included with the 10-K filing[358](index=358&type=chunk)[360](index=360&type=chunk) - Financial Statement Schedule III - Real Estate and Accumulated Depreciation is included in the filing[359](index=359&type=chunk) [Form 10-K Summary](index=67&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable to the company - Not applicable[363](index=363&type=chunk)

Diamondrock Hospitality Co (NYSE:DRH) Q4 2023 Earnings Conference Call February 23, 2024 11:00 AM ET Company Participants Briony Quinn - SVP & Treasurer Mark Brugger - President, CEO & Director Jeffrey Donnelly - CFO, EVP Conference Call Participants Dori Kesten - Wells Fargo Securities Smedes Rose - Citi Austin Wurschmidt - KeyBanc Capital Markets Bill Crow - Raymond James Floris van Dijkum - Compass Point Research & Trading Mike Bellisario - Baird Anthony Powell - Barclays Investment Bank Duane Pfennigwer ...

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 ...

Financial Performance - For the nine months ended September 30, 2023, room revenue comprised approximately 67% of total revenues[127]. - Total revenues for the three months ended September 30, 2023, increased by $8.3 million, or 3.1%, to $276.5 million compared to $268.2 million in 2022[135]. - Room revenues increased by $1.3 million, with a $3.0 million increase from non-comparable properties, offset by a $1.7 million decrease at comparable properties due to declining occupancy and ADR[135]. - Food and beverage revenues rose by $2.8 million, with $1.3 million attributed to non-comparable properties, reflecting higher outlet revenues at comparable properties[137]. - Other revenues increased by $4.2 million, with $2.8 million from non-comparable properties, primarily due to higher resort fees and parking revenues[138]. - Total revenues for the nine months ended September 30, 2023, increased by $64.8 million, or 8.7%, to $811.3 million compared to $746.5 million in 2022[145]. - Room revenues for the nine months increased by $34.1 million, with $10.0 million from non-comparable properties, driven by improved occupancy and ADR at urban hotels[145]. - Net income for Q3 2023 was $27.33 million, a decrease of 4.3% from $28.56 million in Q3 2022[187]. - EBITDA for Q3 2023 increased to $71.21 million, up 9.3% from $64.99 million in Q3 2022[187]. - Adjusted EBITDA for the nine months ended September 30, 2023, was $214.38 million, slightly up from $213.16 million in the same period of 2022[187]. - FFO for Q3 2023 was $55.01 million, a decrease of 1.1% compared to $55.61 million in Q3 2022[188]. - Adjusted FFO available to common stockholders for Q3 2023 was $54.59 million, down from $60.63 million in Q3 2022[188]. Hotel Operations - As of September 30, 2023, the company owned a portfolio of 36 premium hotels and resorts with a total of 9,745 guest rooms located in 25 different markets in the United States[118]. - The total weighted average occupancy rate for the portfolio was 73.3%, with a Revenue per Available Room (RevPAR) of $206.76, reflecting a 4.1% increase from the previous year[132]. - The Chicago Marriott Downtown Magnificent Mile achieved a RevPAR of $149.41, representing a 14.8% increase from 2022[132]. - The Westin Boston Seaport District had an occupancy rate of 85.3% and a RevPAR of $207.90, up 15.5% from the previous year[132]. - The company’s hotels are managed by third-party operators, with management fees based on revenue and profitability levels[119]. Capital Structure and Investments - The company employs a strategy of aggressive asset management and disciplined capital allocation to enhance long-term stockholder returns[120]. - The company is committed to a conservative capital structure and regularly assesses the availability and affordability of capital to maximize stockholder value[122]. - The company had $1.2 billion of outstanding debt with a weighted average interest rate of 5.07% and a weighted average maturity of approximately 2.7 years[162]. - The company expects to spend approximately $100 million on capital improvements at its hotels in 2023, having already invested $67.4 million during the nine months ended September 30, 2023[178]. - The company has set aside $36.5 million for capital projects in property improvement funds as of September 30, 2023[177]. - The company repurchased 318,454 shares of common stock at an average price of $7.60 per share for a total of $2.4 million during the nine months ended September 30, 2023[165]. Cash Flow and Expenses - The company’s net cash provided by operations was $184.7 million for the nine months ended September 30, 2023[170]. - The company’s net cash used in investing activities was $101.2 million for the nine months ended September 30, 2023, including $31.9 million for the acquisition of Chico Hot Springs Resort[171]. - Hotel operating expenses increased by $13.2 million, or 7.1%, to $199.1 million, with $5.8 million from non-comparable properties, driven by increased occupancy and related labor costs[140]. - Total hotel operating expenses for the nine months increased by $66.4 million, or 12.9%, to $581.3 million, with $16.0 million from non-comparable properties[150]. - Interest expense rose by $6.9 million, from $9.1 million in 2022 to $16.0 million in 2023, primarily due to rising interest rates on variable rate debt and new unsecured term loans[144]. - Interest expense for the nine months increased by $25.8 million, from $22.9 million in 2022 to $48.7 million in 2023, mainly due to rising interest rates and changes in interest rate swaps[155]. - The company’s total outstanding debt as of September 30, 2023, was $1.2 billion, with $425 million being variable rate debt[200]. - A 100 basis point fluctuation in interest rates on variable rate debt could result in an annual change in interest expense of $4.3 million[200]. Risks and Market Conditions - The company faces risks including rising inflation, increased competition, and potential impacts from economic downturns on hotel operations[118]. - The company anticipates ongoing market risks primarily related to interest rate fluctuations affecting its financial performance[200]. Dividends and Shareholder Returns - The company intends to distribute dividends at least equal to its REIT taxable income to avoid corporate income tax, with recent dividends of $0.06, $0.03, and $0.03 per share paid in 2023[175].

Financial Data and Key Metrics Changes - Total revenues for DiamondRock's entire portfolio in Q3 2023 were $277.1 million, marking the highest third-quarter revenue in the company's history, despite being only modestly up from 2022 [77] - RevPAR in Q3 contracted 1.1% compared to the same period in 2022 but was up 7.6% compared to 2019, exceeding expectations [76] - Hotel adjusted EBITDA in Q3 was $81.1 million, which was $6.6 million or 8.9% ahead of 2019 [77][91] Business Line Data and Key Metrics Changes - Group business in Q3 was strong, with notable increases at various properties: Westin DC up 33%, Westin Boston up 10.4%, and Westin San Diego up 15.6% [78] - Resort RevPAR increased nearly 24% over 2019, despite an 8.2% contraction compared to last year [69] - The Dagny in Boston is projected to increase its EBITDA by $4 million next year, stabilizing at over $15 million of annual EBITDA [71][101] Market Data and Key Metrics Changes - Urban total RevPAR was up 2.9% in Q3 over last year, while resorts saw a significant sequential improvement [67] - Forward bookings for group revenue are pacing up over 23% compared to the same time last year, with Chicago Marriott up over 40% [90] - The company noted that the number of nights of locational flexibility has doubled post-pandemic, impacting demand positively [70] Company Strategy and Development Direction - DiamondRock's strategy focuses on maintaining a high-quality portfolio with nearly 95% of properties unencumbered by long-term management contracts, allowing for greater operational control [66] - The company has invested over $0.5 billion in renovations and repositioning over the last five years, enhancing competitiveness [81] - Future ROI projects include converting the Hilton Burlington to a lifestyle hotel and repositioning the Bourbon Orleans in New Orleans [82][115] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the travel industry's future, citing strong demand and limited hotel supply in most markets [162] - The company anticipates that 2024 will see improved expense comparisons and continued growth in group demand [99][162] - Management acknowledged the current economic environment's impact but remains constructive on travel demand and hotel performance [100][162] Other Important Information - The company repurchased over 1.8 million shares for approximately $14.7 million, indicating a focus on maximizing shareholder value [97] - The company is testing the market with potential dispositions, primarily in urban markets, due to better liquidity for smaller transactions [177] - The company expects a $6.2 million increase in property taxes in Q4 compared to last year [125] Q&A Session Summary Question: What are the trends in resort performance? - Management noted a sequential improvement in resort performance, with some markets stabilizing and others reaccelerating [4][10] Question: How does the company view the normalization period in resorts? - Management believes the normalization period is starting to improve and expects further reacceleration in 2024 [3][5] Question: What is the outlook for group revenue in 2024? - Group revenue is pacing up over 23% compared to the same time last year, with strong forward bookings in key markets [90][144] Question: How is the company managing expenses and margins? - Management indicated that expenses have come down substantially year-over-year, with a focus on improving productivity per room [14][99] Question: What is the company's strategy regarding asset sales? - The company is testing the market for potential dispositions, primarily focusing on urban assets below $100 million due to current market conditions [177]