DiamondRock Hospitality : May 2026 Investor Presentation
DRH
Published on 05/04/2026 at 07:53 am EDT
INVESTOR PRESENTATION
MAY 2026
DEMAND SEGMENTATION
DIVERSIFIED GEOGRAPHY
MARKET EBITDA
Boston 12.9%
Chicago 12.2%
New York City 7.1%
Florida Keys 6.3%
Fort Lauderdale 5.7%
Vail 5.6%
Fort Worth 4.7%
Destin 4.6%
Salt Lake City 4.3%
Denver 4.2%
Sausalito/San Francisco 4.0%
Charleston 3.5%
Sedona 3.5%
San Diego 3.2%
Sonoma 3.0%
Atlanta 2.3%
New Orleans 2.1%
Huntington Beach 2.1%
Phoenix 1.8%
Austin 1.7%
Burlington 1.5%
Lake Tahoe 1.4%
Paradise Valley/Yellowstone 0.9%
Minneapolis 0.8%
DC Metro 0.5%
Total 100.0%
Vail Denver
Ft. Lauderdale
Marathon Key West
Bethesda
Luxury Resort
San Diego Phoenix
Ft. Worth
Charleston
Lifestyle Resort LIFESTYLE/
Atlanta
RESORT
Austin
Destin
Urban Lifestyle New Orleans
Urban Gateway
URBAN
Sedona
Chicago
San Francisco
Huntington Beach
New York
Salt Lake City
Sonoma
Sausalito Lake Tahoe
Boston
Burlington
Paradise Valley/Yellowstone
Minneapolis
DIVERSIFIED PROPERTIES
MARKETS
26 GEOGRAPHIC
34 PROPERTIES
9,400 ROOMS
PORTFOLIO
MANAGEMENT ALIGNMENT TO DRIVE OUTPERFORMANCE
RELENTLESS FOCUS ON SHAREHOLDER VALUE CREATION
Targeting long-term average annual "FFO/sh growth + dividend yield" 100-200bps above peers
Embedded dividend growth over the next several years
Releasing untapped or underappreciated value and cash flow at the hotel and corporate level
Repurchased common shares at a ~10% implied capitalization rate since mid-2024
Optimizing renovation cycles where appropriate
Recycling low free cash flow (FCF) yielding assets into high FCF yielding investments
PRUDENT CAPITAL ALLOCATION
Adjusted performance-based compensation to 100% TSR, focused on top decile performance
Streamlined executive team in 2024, lowering annual G&A by $3MM, or 10%
Integrated Operations and Investments teams, under leadership of President/COO
LAKE AUSTIN SPA RESORT
HENDERSON BEACH RESORT
"A long-term commercial real estate investor should have a relentless focus on growing Free Cash Flow per share."
DIAMONDROCK 2023-25 FCF/SH CAGR
+10.6%
+350BPS
PREMIUM VS. PEERS
T3-YR TSR PREMIUM
+1200BPS
VS. PEERS
Source: Company documents, FactSet, Peers defined as: HST, PK, XHR, PEB, SHO
Outsized Free Cash Flow Per Share Growth Over the Medium and Long Term vs. Peers
~32% Lower Cap Ex Per Key Spent vs. Peers Over Trailing 5 Years, ~19% Lower Over Trailing 10 Years
Optimizing Renovation Cycles and Scopes Across Portfolio
Anticipated Capital Spend Incrementally Important In Capital Recycling Decisions
% OF THIRD-PARTY MANAGED ROOMS
Source: Company documents, CoStar
EBITDA PER KEY DIFFERENTIAL
VALUATION PREMIUM: UNENCUMBERED VS. ENCUMBERED HOTELS
15%
TO
20%
Greater control over expenses, Cap Ex, and cash
Contracts are short term and generally terminable at will
Decision-making catered to each hotel's unique needs
Flexibility around distribution channels and service providers
Ability to quickly test/implement profit enhancing technologies
Driven to be at the forefront of harnessing AI to attract guests
and improve efficiencies
STABLE ANNUAL CAP EX SPEND = PREDICTABLE CASH FLOW MAXIMIZES SHAREHOLDER RETURNS
$150
Ca ilal Ex єn ilu єs in ΛΛs (E6 )
$125
7-9% OF REVENUE SCHEDULED TO BE SPENT ANNUALLY
10%
Ca ilal Ex єn ilu єs as % of є єnuєs (LINE)
8%
$100
6%
$75
4%
$50
$25 2%
$0 0%
2014-19 Avg. 2022 2023 2024 2025 2026 2027 2028 2029 2030
PROJECTS ARE SCHEDULED THROUGH 2030
Minimizes Earnings Disruption, Reduces Costs, Enhances Execution
7
"Failing to plan is planning to fail"
- Alan Lakein
DISPOSITION PROCEEDS ($MM)
LOWEST FCF YIELD AVG.
ACQUISITION FCF YIELD
INCREMENTAL FCF ($MM)
100
2.7%
6.5%
3.8
150
2.7%
6.5%
5.7
200
2.7%
6.5%
7.6
250
2.7%
6.5%
9.5
300
2.7%
6.5%
11.4
POTENTIAL DISPOSITION CHARACTERISTICS
Lower FCF yielding asset
Minimal return on incremental Cap Ex
Unfavorable ground lease
Higher cost operating environment
Deteriorating market fundamentals
POTENTIAL ACQUISITION CHARACTERISTICS
POTENTIAL NET PORTFOLIO BENEFITS
Higher FCF yielding asset
Lower Cap Ex requirement
Fee simple interest
Lower cost operating environment
Recovering or stable market
Depth of ROI investment opportunities
Accelerating FFO/sh & FCF/sh growth
Earned/implied multiple expansion
Cap Ex aligned with return expectations
Portfolio better positioned to drive continued RevPAR index gains
2024-2025 CAPITAL RECYCLING
Invested:
AC
Minneapolis
$30MM
8.2% cap rate
(minimal Cap Ex)
Sold:
Westin DC
$92MM
7% Cap Rate
~5% FCF Yield
Invested:
Share ~10% cap
Repurchases rate
$63MM
~$8MM of FCF Implies $0.75/sh Value Creation
Invested:
Sedona ROI Project
$25MM
10%+ stabilized
yield on cost
LUXURY & LIFESTYLE RESORTS
SEDONA, AZ
HUNTINGTON BEACH, CA
LAKE TAHOE, CA
SAUSALITO, CA
L'AUBERGE DE SEDONA
KIMPTON SHOREBREAK RESORT
THE LANDING RESORT AND SPA
CAVALLO POINT
SONOMA, CA
VAIL, CO
DESTIN, FL
DESTIN, FL
THE LODGE AT SONOMA RESORT
THE HYTHE, A LUXURY COLLECTION HOTEL
HENDERSON BEACH RESORT
HENDERSON PARK INN
FORT LAUDERDALE, FL
FORT LAUDERDALE, FL
KEY WEST, FL
KEY WEST, FL
KIMPTON SHOREBREAK FT. LAUDERDALE BEACH RESORT
WESTIN FORT LAUDERDALE BEACH RESORT
HAVANA CABANA
MARGARITAVILLE BEACH HOUSE
MARATHON, FL PRAY, MT AUSTIN, TX
LAKE AUSTIN SPA RESORT
CHICO HOT SPRINGS
TRANQUILITY BAY RESORT
URBAN LIFESTYLE HOTELS
THE GWEN, A LUXURY COLLECTION HOTEL
HOTEL CLIO, A LUXURY COLLECTION HOTEL
HOTEL EMBLEM
HOTEL PALOMAR PHOENIX
CHICAGO, IL
DENVER, CO
SAN FRANCISCO, CA
PHOENIX, AZ
NEW ORLEANS, LA
BOURBON ORLEANS HOTEL
BOSTON, MA
THE DAGNY
CHARLESTON, SC
THE LINDY CHARLESTON HISTORIC DISTRICT
BURLINGTON, VT
HOTEL CHAMPLAIN
23 Hotels
4,342 Keys
57% of Portfolio by Revenue
12 Independent Hotels
100% Unencumbered by Management
MORE PEOPLE MORE FLEXIBILITY
U.S. Population by Age Segment Over Time (in MM)
Upside Opportunity with Locational Flexibility
Per CBRE, population growth
in heaviest traveling
2010 2030
71.5
60.8 62.3
90.4
2019 Days Per Week in Office of an Average U.S. Office Worker
Post-Pandemic Days Per Week in Office of an Average U.S. Office Worker
Peak Travel Years
segments (Millennials & Baby Boomers) with more flexibility, money, and desire for more experiences should
lead to more leisure travel.
Family Formation/Millennials (25-39)
Source: CBRE Hotels Research
Active Retirement/Baby Boomers (55-79)
Flexibility
MORE EXPERIENTIAL SPENDING
Spend on Goods
Spend on Food Service/Hotels
Long Term Shift In Spending on Experiences Over Goods
EXTRAORDINARY LEISURE DEMAND
=
Source: Federal Reserve Bank of St. Louis 10
5 Hotels
3,443 Keys
32% of Portfolio by Revenue
Strong Convention Markets
URBAN GROUP HOTELS
,
WESTIN SAN DIEGO BAYVIEW
SAN DIEGO CA
CHICAGO IL
BOSTON MA
,
WESTIN BOSTON SEAPORT
,
CHICAGO MARRIOTT MAGNIFICIENT MILE
URBAN LIMITED-SERVICE HOTELS
SUBURBAN HOTELS
ATLANTA, GA BETHESDA, MD
NEW YORK, NY
COURTYARD DENVER DOWNTOWN
EMBASSY SUITES BETHESDA
ATLANTA MARRIOTT ALPHARETTA
HILTON GARDEN INN TIMES SQUARE CENTRAL
COURTYARD MANHATTAN/MIDTOWN EAST
AC MINNEAPOLIS DOWNTOWN
NEW YORK, NY
MINNEAPOLIS, MN
DENVER, CO
SALT LAKE CITY MARRIOTT DOWNTOWN
THE WORTHINGTON
2 Hotels, 590 Keys
3% of Portfolio by Revenue
100% Unencumbered by
Management
4 Hotels
1,025 Keys
8% of Portfolio by Revenue
100% Unencumbered by Management
FORT WORTH, TX SALT LAKE CITY, UT
KIMPTON HOTEL PALOMAR PHOENIX
KEY TAKEAWAYS
Q1 2026 RESULTS EXCEEDED EXPECTATIONS
RevPAR Change
TRevPAR Change
Hotel EBITDA Change Adjusted FFO/sh Change
+3.7%
+3.6%
RESORTS
+1.6%
+0.9%
URBAN
TREVPAR vs. 2025
REVPAR vs. 2025
TREVPAR vs. 2025
REVPAR vs. 2025
Invested $20.8MM in capital improvements at our hotels, including:
Room renovation at the Courtyard by Marriott New York Manhattan/Midtown East
Room renovation at the Henderson Park Inn
Investing $80-90MM in capital improvements in 2026
In line with corporate strategy of investing 7-9% of total revenues annually over next 5 years
Executed a new franchise agreement for the Westin Boston Seaport District
New agreement effective January 1, 2027, and creates value for shareholders over the near, medium, and long term
INITIAL (FEB 2026) UPDATED (MAY 2026) ADJUSTED FOR SALE
METRIC LOW END HIGH END LOW END HIGH END LOW END HIGH END
Comparable RevPAR Growth
1.0%
3.0%
1.5%
3.5%
1.5%
3.5%
Comparable Total RevPAR Growth
1.25%
3.25%
1.75%
3.75%
1.75%
3.75%
Adjusted EBITDA
$287.0MM
$302.0MM
$296.0MM
$308.0MM
$290.2MM
$302.2MM
Adjusted FFO
$227.0MM
$242.0MM
$233.5MM
$245.5MM
$228.4MM
$240.4MM
Adjusted FFO per Share
$1.09
$1.16
$1.12
$1.18
$1.10
$1.16
ASSUMPTIONS
Cash Corporate Expenses
$25.0MM to $26.0MM
Cash Interest Expense
$57.8MM to $58.8MM
Weighted Average Shares
208.0MM
2026 GUIDANCE
PREFERRED STOCK REDEMPTION
12/31/2025 Redemption of 8.250% Series A Cumulative Redeemable Preferred Stock
$121.5MM cash on hand utilized
$0.03 FFO per share (net) tailwind in 2026
Redemption in line with capital
allocation strategy
L'AUBERGE DE SEDONA
Q2-Q4 2026 group revenue pace
+130%
50bp+ portfolio RevPAR tailwind in 2026
10%+ Yield on Cost at Stabilization
INDUSTRY TAILWINDS
LIBERATION DAY COMP
GOV'T SHUTDOWN COMP
HOLIDAY CALENDAR
2026 GROUP REVENUE PACE
Q2-Q4 revenue pace +1%, with
relative strength in Q2 & Q4
Rates up ~3% quarterly
Six hotels account for 2/3 of group revenues on the books
DRH'S FIFA WORLD CUP EBITDA EXPOSURE
No. CA
7%
Boston
13%
NYC
7%
In DRH Markets:
55% of Group Stage U.S. games 55% of Round 16-32 U.S. games 67% of Quarter/Semifinal games 100% of Bronze/Final games
Atlanta
2%
Ft. Worth
5%
Ft. Lauderdale
6%
2025 KEY ROI PROJECT: L'AUBERGE DE SEDONA
RENOVATION & INTEGRATION OF L'AUBERGE DE SEDONA
New cliffside pool, bar, and event space with
some of the best views of Sedona's red rocks
Significant rate opportunity
Q4 2025-Q1 2026 RevPAR +25%, EBITDA +55%
15
Franchise Expired in 2025 Value Creation Opportunity
Franchise Expiration in 2027 Potential Upbranding & Expansion
Courtyard Denver Downtown
Exploring Adding New Cabins
Exploring Adding 11 Keys
Currently 37 Rooms Entitled for 135
Exploring Adding More Waterfront Guest Rooms
Ocean-Front Units
Exploring Spa and Meeting
Space Expansion
RELATIVELY LOW LEVERAGE & NO NEAR-TERM MATURITIES
Amended revolving credit facility in July 2025
Earliest debt maturity, inclusive of extensions, is January 2029
All DRH debt is unsecured and prepayable at any time without prepayment penalty
No preferred equity outstanding, no joint ventures, no mortgage debt
Weighted average interest rate of 5.0% as of Q1 2026
8.0x
7.0x
$800
DEBT MATURITY SCHEDULE
6.0x
5.0x
4.0x
3.0x
2.0x
1.0x
$600
Term Loan 1
$500MM
Term Loan 3
$300MM
Revolver
Term Loan 2
$300MM
$400
$200
0.0x
2026 NET DEBT + PREFERRED / EBITDA
HST DRH APLE RHP CLDT SHO XHR PK RLJ PEB INN
$0
2026 2027 2028 2029 2030 2031
Low Leverage
High Leverage
Note: Units in millions. Reflects one year extension options on Term Loans 1 & 3 and Revolver
28 OF 34 HOTELS HAVE NO COMPETITIVE NEW SUPPLY OPENING IN 2026
Paradise Valley/Yellowstone
Minneapolis
Burlington
Boston
Sonoma
Sausalito Lake Tahoe San Francisco
Huntington Beach
San Diego
Salt Lake City
Sedona
Phoenix
Vail
Denver
Ft. Worth
Chicago
Atlanta
NYC
Bethesda
Charleston
No Supply Growth
1-5% Growth
5-10% Growth
>10% Growth
Austin
New Orleans
Destin
FL Keys
Ft. Lauderdale
Supply defined as under construction hotels opening 2026-2028 in STR classes +/- one to DRH hotels within radius of competitive set. Markets sized by 2025 EBITDA.
FIVE CONSECUTIVE YEARS AS SECTOR LEADER
2025 DRH GRESB SCORE & RECOGNITION
ENV3IRONMENTAL
3SOCIAL
GOV1ERNANCE
ISS ESG RANKINGS
GRESB REAL ESTATE ASSESSMENT
Ranked 3rd in Americas and 5th Worldwide for GRESB Score within Hotels/Listed
Top 20% GRESB Score among 95
U.S. Listed Companies
NAREIT AWARD
Received NAREIT's 2024 Leader in the Light Award
GRESB PUBLIC DISCLOSURE
Perfect score - 100 - 1st of 10 companies
2017
2018
2019
2020
2021
2022
2023
2024
2025
DRH GRESB Score 53
75
81
84
86
82
85
86
86
Peer Score Average 57
58
69
69
72
65
77
80
75
Index to Peer Score 93%
129%
117%
122%
119%
126%
110%
108%
115%
Ranked 1st within the U.S. Hotels with a score of "A" compared to the Peer Group Average of "B" and the GRESB Global Average of "B"
GRESB ANNUAL RESULTS VS PEER GROUP
As of December 2025
Avg
Disclaimer
DiamondRock Hospitality Company published this content on May 04, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 04, 2026 at 11:52 UTC.