DiamondRock Hospitality : January 2022 Investor Presentation

01/21/2022 | 08:43am EDT

INVESTOR PRESENTATION	JANUARY 21, 2022

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," "anticipate," "plan," "estimate," "project," "will," "intend" or other similar expressions. Forward-looking statements include, without limitation, statements regarding, industry outlook, results of operations, cash flows, business strategies, growth and value opportunities, capital and other expenditures, financing plans, expense reduction initiatives and projected dispositions.

Factors that could cause actual results to materially differ from those contained in the forward-looking statements include, without limitation, national and local economic and business conditions, including the impact of COVID-19 on occupancy rates at the Company's hotels and the demand for hotel products and services, and those risks and uncertainties discussed in the most recent Annual Report on Form 10-K, which DiamondRock Hospitality Company (the "Company") has filed with the Securities and Exchange Commission, and which you should carefully review. The forward-looking statements made are based on our beliefs, assumptions and expectations of future performance, taking into account all information currently available to the Company. Actual results could differ materially from the forward-looking statements made in this presentation. The forward-looking statements made in this presentation are subject to the safe harbor of the Private Securities Litigation Reform Act of 1995.

Any forward-looking statement speaks only as of the date on which it is made. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this presentation is as of the date of this presentation, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.

This presentation contains statistics and other data that has been obtained or compiled from information made available by third- party service providers and believed to be reliable, but the accuracy and completeness of the information is not assured. The Company has not independently verified any such information.

KEY TAKEAWAYS AND RECENT EVENTS

KEY TAKEAWAYS

Strong Q4 2021 Operating Performance
Pipeline of ROI Projects with 40%+ IRRs
Transformative Capital Recycling Transactions
ESG Leader - Corporate Responsibility Report

RECENT TRANSACTIONS

HENDERSON BEACH RESORT

Acquired the 170-room Henderson Beach Resort in Destin, Florida
- 6.4% capitalization rate on 2021 Hotel NOI
- 8.0% estimated stabilized Hotel NOI yield
- Numerous asset management and ROI opportunities to drive incremental cashflow
- Operating synergies with Henderson Park Inn, adjacent resort acquired in July 2021

The Lodge at Sonoma

TRANQUILITY BAY BEACHFRONT RESORT

Acquired commercial interest in the 103-room Tranquility Bay Beachfront Resort in Marathon, Florida
- 11.1% capitalization rate on 2021 Hotel NOI
- Very low on-going capital expenditure obligation
- Numerous asset management opportunities to drive incremental resort cashflow
- Entitlements for an on-site marina

OPERATING UPDATE

2021 MONTHLY COMPARABLE OPERATING RESULTS(1)

	Occ	ADR	RevPAR	Revenue	Revenue B/(W) 2019

Jan	21.3%	$193.61	$41.18	18,296	(67.8%)

Feb	29.2%	$217.42	$63.43	24,985	(61.1%)

Mar	36.5%	$241.35	$88.08	36,576	(54.4%)

Apr	39.4%	$236.06	$92.89	38,686	(52.2%)

May	47.8%	$232.30	$111.00	47,637	(45.7%)

Jun	59.5%	$233.32	$138.76	54,804	(37.1%)

Jul	70.0%	$253.06	$177.06	70,943	(9.3%)

Aug	63.5%	$234.00	$148.52	60,658	(19.3%)

Sep	62.5%	$249.61	$155.90	62,351	(24.3%)

Oct	66.7%	$267.90	$178.63	73,681	(18.8%)

Nov	60.2%	$238.98	$143.93	59,058	(17.1%)

Dec(2)	56.1%	$270.77	$151.81	63,491	(2.4%)

(1)	The comparable operating information includes operating results for our 32-hotel portfolio owned as of December 31, 2021, which includes our 2021 acquisitions (Bourbon Orleans, Henderson Park	4
	Inn and Henderson Beach Resorts) and excludes our 2021 dispositions.

(2)	Preliminary results as of January 20, 2022

WHY DIAMONDROCK

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DiamondRock Hospitality Company published this content on 21 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 January 2022 13:42:06 UTC.

DIAMONDROCK HOSPITALITY COMPANY

DiamondRock Hospitality : January 2022 Investor Presentation

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