INVESTOR

PRESENTATION

NOVEMBER 2023

TRANQUILITY BAY BEACHFRONT RESORT

FORWARD LOOKING STATEMENTS & USE OF NON-GAAP FINANCIAL MEASURES

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 DiamondRock Hospitality Company's (the "Company") 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 the Company has filed with the Securities and Exchange Commission, and in our other public filings 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 reflect ed 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.

USE OF NON-GAAP FINANCIAL MEASURES

We use the following non-GAAP financial measures that we believe are useful to investors as key measures of our operating performance: EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted FFO. These measures should not be considered in isolation or as a substitute for measures of performance in accordance with U.S. GAAP. EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted FFO, as calculated by us, may not be comparable to other companies that do not define such terms exactly as the Company.

A detailed explanation of these non-GAAP financial measures and the reconciliation of such measures to the most directly comparable financial measures prepared in accordance with U.S. GAAP can be found in the Company's third quarter 2023 earnings press release dated November 1, 2023.

2

WHY DIAMONDROCK?

1

High Quality & Geographically Diverse Hotels

2

Robust Outlook For Group & Leisure Demand

3

Track Record of Driving Internal and External Growth

4

Strong Liquidity and Flexible Balance Sheet

5

Robust ROI Pipeline and Highly Liquid Portfolio

6

ESG Leadership

7

Experienced Management

3

DIAMONDROCK AT A GLANCE

PORTFOLIO

9,724

ROOMS

36

PROPERTIES

25

MARKETSGEOGRAPHIC

DIVERSIFIED PROPERTIES

FINANCIAL SUMMARY

Q3 2023

TTM Revenue

$1.1B

TTM Corporate Adj. EBITDA

$282MM

Total Debt1

$1.2B

Net Debt2 to TTM EBITDA

3.8x

Total Debt to Gross Book Value

29%

  1. Excludes preferred capital
  2. Cash includes corporate cash, excludes preferred capital

DIVERSIFIED GEOGRAPHY

% OF 2022

MARKET

EBITDA3

Atlanta

1.3%

Austin

2.5%

Boston

10.2%

Burlington

2.7%

Charleston

3.2%

Chicago

14.2%

DC

1.1%

Denver

3.7%

Destin

3.7%

Florida Keys

8.4%

Fort Lauderdale

7.7%

Fort Worth

4.2%

Huntington Beach

2.7%

Lake Tahoe

1.4%

New Orleans

2.0%

New York City

6.9%

Paradise Valley/Yellowstone

0.9%

Phoenix

1.8%

Salt Lake City

2.9%

San Diego

2.9%

San Francisco

0.3%

Sausalito

3.9%

Sedona

4.5%

Sonoma

2.8%

Vail

4.1%

Total

100.0%

3. 2022 EBITDA, proforma for 2022 & 2023 acquisitions

4

WELL POSITIONED PORTFOLIO: LEISURE AS A LONG-TERM SECULAR DRIVER

LUXURY & LIFESTYLE RESORTS

AUSTIN, TX

MARATHON, FL

FORT LAUDERDALE, FL

PRAY, MT

24 Hotels 4,312 Keys

57% of Portfolio

by Revenue

15 Independent Hotels

100%

Unencumbered by Management

LAKE AUSTIN SPA RESORT

TRANQUILITY BAY RESORT

SEDONA, AZ

DESTIN, FL

L'AUBERGE DE SEDONA

HENDERSON BEACH RESORT

VAIL, CO

DESTIN, FL

THE HYTHE, A LUXURY COLLECTION HOTEL

HENDERSON PARK INN

KEY WEST, FL

SAUSALITO, CA

CAVALLO POINT

MARGARITAVILLE BEACH HOUSE KEY W EST

URBAN LIFESTYLE HOTELS

BURLINGTON, VT

CHARLESTON, SC

HOTEL CHAMPLAIN BURLINGTON

THE LINDY CHARLESTON HISTORIC DISTRICT

PHOENIX, AZ

SAN FRANCISCO, CA

WESTIN FORT LAUDERDALE BEACH RESORT

LAKE TAHOE, CA

THE LANDING RESORT AND SPA

FORT LAUDERDALE, FL

KIMPTON SHOREBREAK FORT LAUDERDALE BEACH

RESORT

SEDONA, AZ

ORCHARDS INN

CHICAGO, IL

THE GWEN, A LUXURY COLLECTION HOTEL

NEW ORLEANS, LA

CHICO HOT SPRINGS

HUNTINGTON BEACH, CA

KIMPTON SHOREBREAK RESORT

KEY WEST, FL

HAVANA CABANA

SONOMA, CA

THE LODGE AT SONOMA RESORT

DENVER, CO

HOTEL CLIO, A LUXURY COLLECTION HOTEL

BOSTON, MA

HOTEL PALOMAR PHOENIX

HOTEL EMBLEM

BOURBON ORLEANS HOTEL

THE DAGNY BOSTON

5

Notes: Revenue is trailing twelve months as of Q3 2023

WELL POSITIONED PORTFOLIO: GROUP AND URBAN DEMAND RECOVERY

URBAN GROUP HOTELS

6 Hotels 3,853 Keys

31% of Portfolio by Revenue

Strong Convention Markets

BOSTON, MA

CHICAGO, IL

SAN DIEGO, CA

WESTIN BOSTON SEAPORT

CHICAGO MARRIOTT MAGNIFICIENT MILE

WESTIN SAN DIEGO BAYVIEW

FORT WORTH, TX

SALT LAKE CITY, UT

WASHINGTON, DC

THE WORTHINGTON

SALT LAKE CITY MARRIOTT DOWNTOWN

WESTIN WASHINGTON, D.C. CITY CENTER

URBAN LIMITED-SERVICE HOTELS

4 Hotels 969 Keys

9% of Portfolio by Revenue

100% Unencumbered by Management

SUBURBAN HOTELS

2 Hotels 590 Keys

3% of Portfolio by Revenue

100% Unencumbered by Management

NEW YORK, NY

NEW YORK, NY

NEW YORK, NY

HILTON GARDEN TIMES SQUARE CENTRAL

COURTYARD MANHATTAN/FIFTH AVENUE

COURTYARD MANHATTAN/MIDTOWN EAST

DENVER, CO

COURTYARD DENVER DOWNTOWN

ATLANTA, GA

BETHESDA, MD

ATLANTA MARRIOTT ALPHARETTA

EMBASSY SUITES BETHESDA

6

Notes: Revenue is trailing twelve months as of Q3 2023

Q3 2023 PERFORMANCE HIGHLIGHTS

Q3 RESULTS

Total Revenue Up 12% vs 2019 and Flat to 2022

RevPAR Ahead of Expectations

Q3 Comparable Results:

  • Revenue: $277.1MM, +0.1% vs 2022 and +12.0% vs 2019
  • RevPAR: $210.03, -1.1% vs 2022 and +7.6% vs 2019
  • TRevPAR: $312.35, -0.1% vs 2022 and +11.6% vs 2019
    • Sequential year-over-year improvement in resorts from Q2
  • Departmental Operating Expenses increased 1.4% despite disruption, flat revenues, and 140bps higher occupancy
  • Hotel Adj. EBITDA: $81.1MM, -6.6% vs 2022 and +8.9% vs 2019
    • $2.0MM from The Dagny conversion disruption
    • $2.8MM due to Chicago property tax relief recognized in prior year
    • $1.9MM due to insurance policy renewal (April 2023) - Q3 reflects full quarter impact of higher costs
  • Aggressive asset management initiatives resulted in:
    • Other Income increased by 8.5%
    • Comparable F&B Profit Margins increased 50bps vs 2022 despite food inflation
    • Beverage Margins increased 140bps

2023 Comparable Results

Q1

Q2

Q3

RevPAR vs 2022

16.8%

0.6%

-1.1%

RevPAR vs 2019

13.7%

8.0%

7.6%

KIMPTON HOTEL PALOMAR PHOENIX

7

IMPROVING LEISURE DEMAND

Resort Revenue Still 25%+ above 2019, Q3 Resorts Adj. Hotel EBITDA Up 23% vs 2019

Resort RevPAR Finding New Baseline

Resort RevPAR vs 2022

Resort RevPAR vs 2019

140%

130%

131%

124%

120%

100%

94%

87%

92%

80%

500 bps

60%

improvement

40%

from prior

quarter

20%

0%

Q1

Q2

Q3

Q1

Q2

Q3

Tremendous Upside Opportunity

with Locational Flexibility

4.4 Days Per Week

2019 Days Per Week in Office of an

Average US Office Worker

3.4 Days Per Week

Post-Pandemic Days Per Week in Office

of an Average US Office Worker

2.7B Incremental Days of

Locational Flexibility

Source: CBRE Hotels Research

THE LANDING RESORT & SPA

TRANQUILITY BAY RESORT

THE HYTHE, A LUXURY COLLECTION HOTEL

Q3 TRevPAR

+15.2%

+10.4%

+9.3%

vs 2022

8

STRONG GROUP PACE - FAVORABLE FOOTPRINT

2023 Comparable Group Revenue Expected to Exceed 2019 (Rates Up, but Room Nights ~10% below 2019)

2024 Group Revenue Pace Up 23% vs 2022

Group Demand Recovering Fast in 2023, with 2024 US Convention Volume to Exceed 2019

Strong Citywide Convention Room Nights (Units'000)

Convention Volume Forecast Indexed to 2019

100%

MARKET

% of 2022A

2019

2022

2023E

2024E

2025E

EBITDA

80%

CHICAGO

14%

1,142

1,153

1,047

1,184

1,084

60%

BOSTON

10%

349

330

426

389

366

SAN DIEGO

3%

732

660

811

906

831

40%

PHOENIX

2%

291

305

368

332

290

20%

WASHINGTON, DC

1%

387

400

297

450

364

0%

TOTALS

30%

2,901

2,848

2,948

3,262

2,935

2019

2022

2023

2024

Source: CBRE Hotels Research, Center for Exhibition Industry Research's Index

Significant Upside Potential in Full Year Group Revenue

800

('000)

A return to 2019

level group room

Nights

700

nights

$34MM

represents

Room

incremental

room revenue

Group

and additional

out of room

600

spend

2019

2022

2023

DRH's Geographic Footprint Well-Positioned for Group Recovery

WESTIN WASHINGTON, D.C. CITY CENTER

CHICAGO MARRIOTT

WESTIN BOSTON SEAPORT DISTRICT

2024 Group

+59.1%

+43.9%

+17.8%

Revenue Pace

as of Q3 vs 2022

9

MODEST GAINS IN BUSINESS TRANSIENT

Q3 Business Transient Demand Up 5.9% vs 2022 - Modest Gains, Though Still Below Prior Peak

Corporate Transient Expected to Continue to Improve, Albeit Slowly

Business Travel (GDS) Share of Total Demand vs Percent of 2019 Levels

Strong Focus on Maximizing Business

Transient Revenue Strategies

  • Working Closely with Operators
  • Channel Shift
  • Occupancy vs Rate Trade Offs

THE GWEN, A LUXURY COLLECTION HOTEL

Source: CBRE Hotels Research, Kalibri Labs

10

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Disclaimer

DiamondRock Hospitality Company published this content on 13 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 November 2023 13:46:46 UTC.