DIAMONDROCK HOSPITALITY COMPANY The Landing, Lake Tahoe
Investor Presentation | June 2021 | |
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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.
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Recent Events
Operations
Trailing Three Months | |||||||||
March | April(1) | May(1) | |||||||
Occ | ADR | RevPAR | Occ | ADR | RevPAR | Occ | ADR | RevPAR | |
Resort | |||||||||
55.4% | $311.73 | $172.62 | 62.7% | $335.28 | $210.28 | 62.9% | $345.25 | $217.24 | |
Urban | 18.4% | $131.21 | $24.11 | 23.3% | $136.44 | $31.82 | 28.4% | $144.08 | $40.97 |
Total Portfolio | 26.9% | $216.85 | $58.34 | 32.4% | $225.16 | $72.96 | 36.4% | $224.29 | $81.62 |
- Cash flow positive each month
- Expect cash flow in Q2 to be positive after corporate G&A
- Reopened Chicago Marriott on 4/15/21, Hilton Garden Inn Times Square on 5/3/21, and Courtyard Fifth Avenue on 6/1/21
Strategic Transactions
- Created $350MM+ Investment Capacity
- Pending Sale of The Lexington for $185MM
- 6.3% capitalization rate on 2019 Hotel NOI
- 5.8% capitalization rate on 2018 Hotel NOI
- Sold Frenchman's Reef for $35MM plus profit participation
- Preserves $175MM of liquidity
- Received $240MM of insurance proceeds in December 2019
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- Forecast as of 6/3/21
DiamondRock at a Glance
2020 FINANCIAL SUMMARY(1)
Hotels (Rooms) | 29 Hotels (~9K Rooms) |
Stock Price | $10.07 |
2019 Implied EBITDA Multiple | 12.1x |
2019 Implied NOI Cap Rate | 7.6% |
Enterprise Value per Key | $321K |
TOP TIER PORTFOLIO
2020 ADR(3)
$233
$220
$209 $205 $203
$184 $178
$142
$120
$111
PEB HST DRH(2) SHO XHR PK | HT | RLJ INN APLE |
URBAN AND RESORT HOTELS IN TOP MARKETS(2)(4)
Urban Lifestyle
14%
Resorts | Urban Gateway |
26% | |
60% | |
.
- Share price as of 6/3/21
- All figures Pro Forma for sale of Frenchman's Reef (4/30/21) and pending sale of The Lexington (est. 6/30/21)
- As of 12/31/2020. Source: Company Filings
- Weighted by 2019 Actual EBITDA
HIGH QUALITY BRANDS(2)(4)
Encumbered,
21%
Unencumbered,
79%
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DiamondRock Balance Sheet Profile
$350MM+ of Investment Capacity
$437MM liquidity available in cash and revolver capacity(1)
LEVERAGE BELOW PEER AVERAGE(2)
10.4
9.5
8.8
6.3
Average: 5.4x
4.7
3.9 | 3.7 | 3.5 | ||||||||||||||||||||||||
1.5 | 1.2 | |||||||||||||||||||||||||
AHT | BHR | HT | INN | PEB | XHR | DRH | RLJ | HST | SHO | |||||||||||||||||
(1) | As of 3/31/21 | |||||||||||||||||||||||||
(2) | Source: Baird. Net Debt plus preferred / 2019 Consensus EBITDA | |||||||||||||||||||||||||
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Note: Leverage calculation is not adjusted for estimated EBITDA contribution from Frenchman's Reef | ||||||||||||||||||||||||||
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DiamondRock Hospitality Company published this content on 07 June 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 June 2021 14:16:01 UTC.
