UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
(Exact name of registrant as specified in charter)
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(Registrant’s telephone number, including area code): (240 ) 744-1150
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
This Current Report on Form 8-K (“Current Report”) contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as “believe,” “expect,” “intend,” “project,” “anticipate,” “position,” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to national and local economic and business conditions, including the impact of COVID-19 on occupancy rates at our hotels and the demand for hotel products and services, and those risks and uncertainties described from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K filed on February 22, 2022. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this Current Report is as of the date of this Current Report, and we undertake no obligation to update any forward-looking statement to conform the statement to actual results or changes in our expectations.
ITEM 7.01. Regulation FD Disclosure.
A copy of a slide presentation that DiamondRock Hospitality Company (the “Company”) intends to use at investor meetings is attached to this Current Report on Form 8-K (“Current Report”) as Exhibit 99.1 and is incorporated by reference herein. Additionally, the Company has posted the slide presentation in the investor relations/presentations section of its website at www.drhc.com.
The information in this Item 7.01, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section. The information in this Current Report, including Exhibit 99.1, shall not be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any incorporation by reference language in any such filing. This Current Report will not be deemed an admission as to the materiality of any information in this Current Report that is required to be disclosed solely by Regulation FD.
ITEM 9.01. Financial Statements and Exhibits.
(d) Exhibits.
The following exhibits are included with this report:
Exhibit No. Description
101.SCH Inline XBRL Taxonomy Extension Schema Document
101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document
104 Cover Page Interactive Data File
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| DIAMONDROCK HOSPITALITY COMPANY | ||||||||||||||||||||
| Dated: March 4, 2022 | By: | /s/ Briony R. Quinn | ||||||||||||||||||
| Briony R. Quinn | ||||||||||||||||||||
| Senior Vice President and Treasurer | ||||||||||||||||||||
11 INVESTOR PRESENTA T IO N MARCH 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. 2
KEY TAKEAWAYS AND RECENT EVENTS RECENT TRANSACTIONS HENDERSON BEACH RESORT ■ Acquired the 170-room Henderson Beach Resort in Destin, Florida, adjacent to Henderson Park Inn ■ 8.0%+ estimated stabilized Hotel NOI yield TRANQUILITY BAY BEACHFRONT RESORT KEY TAKEAWAYS 1. Strong Q4 2021 Operating Results, Stronger Q1 2022 Operating Trends 2. 2021 ROI Projects Outperforming Underwriting Planning for 2022+ Projects Underway 3. Transformative Capital Recycling Pipeline of On-Strategy Transactions in 2022 4. ESG Leader – Corporate Responsibility Report The Lodge at Sonoma 3 ■ Acquired commercial interest in the 103-unit Tranquility Bay Beachfront Resort in Marathon, Florida ■ 11.6% capitalization rate on 2021 Hotel NOI CREDIT FACILITY AMENDMENT ■ $550 million of acquisition capacity ■ Extended covenant waivers through Q1 2022 ■ Relaxed financial covenants through Q2 2023
OPERATING UPDATE (1) The comparable operating information includes operating results for our 33-hotel portfolio owned as of February 28, 2022. (2) Preliminary results 2021-22 MONTHLY COMPARABLE OPERATING RESULTS(1) Occ ADR RevPAR RevPAR B/(W) 2019 Revenue Revenue B/(W) 2019 Jan-21 22.0% $204.81 $45.07 (65.0%) 19,888 (65.8%) Feb-21 29.8% $230.39 $68.72 (57.9%) 26,916 (59.0%) Mar-21 37.1% $259.69 $96.32 (50.0%) 39,730 (51.8%) Apr-21 39.9% $249.38 $99.49 (50.7%) 41,275 (50.1%) May-21 48.2% $238.23 $114.94 (44.1%) 49,527 (44.4%) Jun-21 59.8% $238.59 $142.71 (34.4%) 56,734 (35.9%) Jul-21 70.2% $259.43 $182.00 (6.1%) 73,344 (8.0%) Aug-21 63.6% $237.99 $151.37 (18.1%) 62,254 (18.4%) Sep-21 62.4% $251.13 $156.76 (23.5%) 63,287 (23.8%) Oct-21 66.8% $271.03 $180.99 (15.8%) 75,271 (17.9%) Nov-21 60.4% $243.98 $147.25 (14.2%) 60,745 (15.9%) Dec-21 56.4% $281.36 $158.69 (1.2%) 66,811 0.2% Jan-22(2) 41.2% $242.98 $100.15 (22.3%) 44,964 (22.7%) Feb-22(2) 57.9% $283.63 $164.33 0.7% 64,529 (1.8%) 4
OPERATING UPDATE 5 ■ FASTER REBOUND Consumers are “shrugging off” Covid-19 waves more quickly -70% -60% -50% -40% -30% -20% -10% 0% 10% Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 % o f 2 0 1 9 A T o ta l R e v e n u e THIRD WAVE OMICRONDELTA 17 Months 5 Months 2 Months REVENUE RECOVERY ACCELERATING -30% -15% -5% 4% 40% 74% 69% -60% -40% -20% 0% 20% 40% 60% 80% 100% Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 % o f 2 0 1 9 C o m p a ra b le H o te l A d j. E B IT D A ROBUST EBITDA RECOVERY ■ RETURN TO TRAVEL Recovery of corporate travel likely follows return-to-office ■ ENCOURAGING OUTLOOK Group lead generation rapidly returning to pre-pandemic levels. Leisure trends robust RECENT TRENDS & OUTLOOK ■ HOTEL EBITDA RECOVERY Strong quarter-on-quarter growth in recovery of Hotel Adjusted EBITDA ■ HOTEL MARGINS We expect DRH’s stabilized margins will be 200-300bp higher post-pandemic Note: Comparable operating results for our 33-hotel portfolio owned as of February 28, 2022. Note: Comparable operating results for our 33-hotel portfolio owned as of February 28, 2022.
WHY DIAMONDROCK 6
DIAMONDROCK IS POSITIONED FOR OUTSIZED GROWTH 2022-2023 SETUP COMPELLING ROI PIPELINE STRONG/IMPROVING PORTFOLIO MARGIN IMPROVEMENT POTENTIAL POWERFUL CAPITAL RECYCLING 1 2 3 4 5 7 THE LODGE AT SONOMA
TRANQUILITY BAY RESORT ■ Sonoma Autograph Collection Q3 2021 ■ The Hythe, The Luxury Collection Q4 2021 ■ Margaritaville Beach House Q4 2021 ■ The Clio, The Luxury Collection Q1 2022 8 FOUR HOTEL UP-BRANDINGS 2022-2023 POSITIONED FOR OUTSIZED GROWTH IMPROVING GROUP TRENDS ■ Strong Expected Growth in 2022 Group Revenue ■ City-wide room nights in 2022/2023 in major urban markets expected to see gains versus 2019 MARGIN IMPROVEMENT POTENTIAL ■ 200-300bp of long-term potential RECENT ACQUISITIONS ■ Projected to add $20MM+ to 2022E EBITDA ■ Tranquility Bay Beachfront Resort – Marathon, FL ■ Henderson Beach Resort – Destin, FL ■ Henderson Park Inn – Destin, FL ■ Bourbon Orleans Hotel – New Orleans, LA 8 THE HYTHE
PROJECTS RECENTLY COMPLETED OR IN PROCESS PROJECT COST IRR Est Completion $3.6MM 74% Q1 2022 PROJECT COST IRR Completed $9.8MM 25% Jul 2021 PROJECT COST IRR Completed $8.4MM 88% Nov 2021 JW MARRIOTT CHERRY CREEKSONOMA RENAISSANCE VAIL MARRIOTT 9Estimated IRRs are calculated assuming a 3-year stabilization period and a 10.0x terminal multiple PROJECT COST IRR Completed $3.5MM 82% Nov 2021 SHERATON KEY WEST
ROI PIPELINE: $90MM of ROI Projects at 40%+ IRRs PROPERTY PROJECT ESTIMATED CAPITAL SPEND(1) ESTIMATED INCREMENTAL EBITDA(1) ESTIMATED IRR(2) ESTIMATED COMPLETION LODGE AT SONOMA Autograph Collection Conversion $9.8 $1.4 25% Complete THE HYTHE, LUXURY COLLECTION Luxury Collection Conversion $8.4 $3.4 88% Complete CHARLESTON RENAISSANCE F&B Repositioning $2.1 $0.5 52% Complete MARGARITAVILLE BEACH HOUSE Rebranding $3.5 $1.3 82% Complete EMBASSY SUITES BETHESDA Brand Conversion $3.3 $0.5 28% Complete HOTEL CLIO, LUXURY COLLECTION F&B and Public Space Renovation $2.5 $0.5 42% Q1 2022 Luxury Collection Conversion $3.6 $1.2 74% Q1 2022 Recently Completed / In-Process $33.2 $8.8 59% ORCHARDS INN Resort Repositioning $19.8 $2.6 22% 2022/23 BOSTON HILTON Third Floor Reconfiguration $6.0 $1.0 33% 2022/23 THE LANDING Additional 17 Keys $6.1 $1.2 42% 2023 Total in Planning $31.9 $4.8 28% Active ROI Pipeline $65.1 $13.6 45% Shadow ROI Pipeline $25MM of Capital Spend Estimated 20%+ IRR 101. Estimated Capital Spend and Estimated Incremental EBITDA based upon management proformas 2. Estimated IRRs are calculated assuming a 3-year stabilization period and a 10.0x terminal multiple
IMPROVING GROUP TRENDS WELL-POSITIONED FOR GROUP RECOVERY ■ GROUPS ARE LOOKING TO MEET Group sales activity for DRH portfolio is ahead of pre-pandemic periods. No demand for “hybrid” meetings ■ AVERAGE EVENT SIZE IS SMALLER… The average lead in FY2021 was 35% smaller than pre-pandemic periods 11 ■ ENCOURAGING CITY-WIDE TRENDS Convention centers in major-markets positioned to surpass 2019 room nights CITYWIDE CONVENTION ROOM NIGHTS MARKET % of 2019A EBITDA 2019 2022E 2023E BOSTON 15% 349,030 330,296 438,015 CHICAGO 15% 1,141,525 1,189,447 1,106,314 WASHINGTON, DC 6% 387,442 394,486 366,818 SAN DIEGO 4% 732,411 692,376 697,265 PHOENIX 3% 290,541 293,139 289,888 TOTALS(1) 43% 2,900,949 2,899,744 2,898,300 (1) As of January 31, 2022. Source: Convention & Visitor Bureaus PORTFOLIO GROUP SALES LEAD ACTIVITY(2) GENERATED LEADS ROOM NIGHT LEADS PERIOD (000S) % OF Q1'20 (MILLIONS) % OF Q1'20 Q1 2020 11.8 100% 2.9 100% Q2 2020 4.3 36% 1.0 34% Q3 2020 4.1 35% 0.7 25% Q4 2020 4.3 36% 0.7 24% Q1 2021 8.2 69% 1.2 41% Q2 2021 11.2 95% 1.7 59% Q3 2021 12.4 105% 2.1 72% Q4 2021 12.1 103% 2.0 69% Q1 2022E 12.6 107% 2.7 94% (2) As of February 15, 2022 (3) Quarterization of January 2022 data Source: DiamondRock hotel portfolio ■ ROOM NIGHTS Room night leads on pace to nearly match pre-pandemic activity in Q1 2022 … BUT GROWING According to preliminary Q1 2022 data, average group size is 10-15% smaller than pre-pandemic periods 220 Median Room Count of DRH Hotel Portfolio 75% 2022 Budgeted Group Rooms On-The-Books in January 2022
200-300bp of Stabilized Margin Expansion RevPAR Index Share Gains Stabilized Contribution of Acquisitions Upbranding & ROI PIpeline 2019 Contribution of Dispositions CAPITAL RECYCLING & EXTERNAL GROWTH INTERNAL GROWTH $55-75 MILLION OF POTENTIAL INCREMENTAL HOTEL ADJUSTED EBITDA 12 SOURCES OF LONG-TERM EBITDA GROWTH $279MM(1) ($15MM)(2) $27-30MM(3) $18-22MM(4) $19-29MM(5) $6-12MM(6) (1) 2019A reported Hotel Adjusted EBITDA (2) Contribution to 2019A Hotel Adjusted EBITDA from The Lexington and Frenchman’s Reef. These assets were sold in 2021. (3) Proforma stabilized Hotel Adjusted EBITDA of Henderson Beach Resort, Henderson Park Inn, Bourbon Orleans and Tranquility Bay. These assets were acquired in 2021-2022. (4) Proforma stabilized Hotel Adjusted EBITDA of Upbranding & ROI pipeline: 2022 Budget vs. 2019A for completed projects and proforma for remainder. (5) Estimated potential increase to stabilized Hotel Adjusted EBITDA margins for DRH portfolio. Stabilized increase to industry-wide margins estimated to be 0-100bp (6) RevPAR Index Share gains for select hotels
POWERFUL CAPITAL RECYCLING BENEFITS OF TRANSACTIONS ■ RECYCLING CREATES BORROWING BASE COLLATERAL: Recycling disposition proceeds into unencumbered hotels significantly reduces credit facility leverage ■ INCREASED EXPOSURE TO RIGHT-TO- WORK STATES: Nearly 40% of portfolio hotels in RTW markets 13 RECYCLING CREATES $20MM+ INCREMENTAL EBITDA(1) THE LEXINGTON HOTEL ($185MM) FRENCHMAN’S REEF ($35MM) HENDERSON BEACH RESORT ($113MM) BOURBON ORLEANS ($89MM) HENDERSON PARK INN ($28MM) TRANQUILITY BAY BEACHFRONT RESORT ($63MM) ■ ACCRETIVE RECYCLING: Sold $220MM of assets at 5.3% cap rate on 2019 NOI. Recycled into $293MM of hotels & resorts at 8.0% stabilized NOI cap rate ■ REDUCES CAPEX SPENDING: Young physical age and beneficial deal structure materially reduced capex spending (1) 2022E EBITDA of the four acquisitions as compared to projected 2022 EBITDA of the two dispositions. $300MMRECYCLING CAPACITY:
ENHANCING PORTFOLIO QUALITY THROUGH RISK REDUCTION % HURRICANE MARKETS COMPANY PERCENT OF ROOMS XHR 28% PK 25% HST 22% SHO 21% PEER AVERAGE 21% DRH-Prior 16% DRH-Current 15% PEB 10% % BRAND MANAGED COMPANY PERCENT OF MANAGEMENT CONTRACTS XHR 86% HST 84% PK 81% SHO 59% PEER AVERAGE 57% PEB 25% DRH-Prior 24% DRH-Current 6% ■ Superior cost management ■ Owner-centric cash mgmt. ■ Owner-centric capital investment ■ Improves asset value ■ Improve cash flow multiple BENEFITS OF LOW EXPOSURE ■ Lower risk of income disruption ■ Long-term sustainability ■ Lower operating costs BENEFITS OF LOW EXPOSURE ■ Strong residual value ■ More financial flexibility ■ Reduced operating leverage ■ Increased earnings transparency Source: Company filings, Robert W. Baird & Co Note: DRH Prior is prior to the disposition of Frenchman’s Reef and The Lexington Hotel, restricting of the Salt Lake City Marriott ground lease, and the six Marriott-managed hotel converted to franchise agreements. Note: Hurricane markets defined as exposure to Norfolk, VA, USVI, Puerto Rico, Coastal Georgia and South Carolina, Florida, Houston, TX, and New Orleans, LA BENEFITS OF LOW EXPOSURE 14 % SUBJECT TO GROUND LEASES COMPANY PERCENT OF ROOMS TENOR OF THE FIVE SHORTEST LEASES NO. OF LEASED HOTELS PEB 37% 35 Years 18 Hotels HST 29% 21 Years 20 Hotels PK 26% 18 Years 16 Hotels PEER AVERAGE 24% 44 Years 11 Hotels DRH-Prior 23% 51 Years 7 Hotels DRH-Current 21% 60 Years 6 Hotels SHO 18% 63 Years 2 Hotels XHR 11% 78 Years 3 Hotels
ENHANCING PORTFOLIO QUALITY THROUGH RISK REDUCTION % HURRICANE MARKETS COMPANY PERCENT OF ROOMS XHR 28% PK 25% HST 22% SHO 21% PEER AVERAGE 21% DRH-Prior 16% DRH-Current 15% PEB 10% % BRAND MANAGED COMPANY PERCENT OF MANAGEMENT CONTRACTS XHR 86% HST 84% PK 81% SHO 59% PEER AVERAGE 57% PEB 25% DRH-Prior 24% DRH-Current 6% ■ Superior cost management ■ Owner-centric cash mgmt. ■ Owner-centric capital investment ■ Improves asset value ■ Improve cash flow multiple BENEFITS OF LOW EXPOSURE ■ Lower risk of income disruption ■ Long-term sustainability ■ Lower operating costs BENEFITS OF LOW EXPOSURE ■ Strong residual value ■ More financial flexibility ■ Reduced operating leverage ■ Increased earnings transparency Source: Company filings, Robert W. Baird & Co Note: DRH Prior is prior to the disposition of Frenchman’s Reef and The Lexington Hotel, restructuring of the Salt Lake City Marriott ground lease, and the six Marriott-managed hotels converted to franchise agreements. Note: Hurricane markets defined as exposure to Norfolk, VA, USVI, Puerto Rico, Coastal Georgia and South Carolina, Florida, Houston, TX, and New Orleans, LA BENEFITS OF LOW EXPOSURE 15 % SUBJECT TO GROUND LEASES COMPANY PERCENT OF ROOMS TENOR OF THE FIVE SHORTEST LEASES NO. OF LEASED HOTELS PEB 37% 35 Years 18 Hotels HST 29% 21 Years 20 Hotels PK 26% 18 Years 16 Hotels PEER AVERAGE 24% 44 Years 11 Hotels DRH-Prior 23% 51 Years 7 Hotels DRH-Current 21% 60 Years 6 Hotels SHO 18% 63 Years 2 Hotels XHR 11% 78 Years 3 Hotels
16 PORTFOLIO
DIAMONDROCK AT A GLANCE 9,452 ROOMS 33 PROPERTIES 23 GEOGRAPHIC MARKETS LOCATION EBITDA LOCATION EBITDA Boston, MA 15% Denver, CO 3% Chicago, IL 15% Phoenix, AZ 3% New York, NY 6% Burlington, VT 3% Ft. Lauderdale, FL 6% Sonoma, CA 2% Washington, D.C. 6% New Orleans, LA 2% Ft. Worth, TX 5% Charleston, SC 2% Key West, FL 5% Huntington Beach, CA 2% San Diego, CA 4% Atlanta, GA 2% Salt Lake City, UT 4% Destin, FL 2% Sausalito, CA 4% Lake Tahoe, CA 1% Vail, CO 4% San Francisco, CA 1% Sedona, AZ 4% DIVERSIFIED GEOGRAPHICAL SOURCES OF EBITDA VARIOUS SOURCES OF REVENUE DIVERSIFIED PORTFOLIO WITH FOCUS ON RESORT AND LIFESTYLE PROPERTIES Urban Lifestyle 39% Luxury Resorts 28% Lifestyle Resorts 33% Q1 Q2 Q3 Q4 ■ Contract/0ther ■ Leisure Transient ■ Business Transient ■ Group NOTE: All operating information is based on 2019 results, pro forma for all acquisitions and dispositions. 17 Urban Gateway, 55% Lifestyle & Resort, 45% Luxury Resorts, 35% Lifestyle Resorts, 31% Urban Lifestyle, 34% % of 2019 Proforma EBITDA
PORTFOLIO: DATA TABLE 18 18 Note: 2021A results used for Henderson Beach Resort, 2019A results used for all other hotels. KEYS REVPAR ($) TREVPAR ($) REVENUE/KEY ($000s) EBITDA/KEY ($000s) % of 2019A EBITDA LUXURY RESORT 930 $281 $489 $179 $48 16% LIFESTYLE RESORT 1,216 $190 $307 $112 $33 14% LIFESTYLE URBAN 1,491 $185 $256 $93 $29 15% RESORT/LIFESTYLE 3,637 $211 $333 $121 $35 45% URBAN GATEWAY 5,815 $176 $240 $88 $27 55% TOTAL 9,452 $189 $276 $101 $30 100% RESORT/LIFESTYLE PREMIUM 20% 39% 38% 30% REVPAR ($) TREVPAR ($) REVENUE/KEY ($000s) EBITDA/KEY ($000s)
PORTFOLIO: OPERATOR AND GUEST MIX DIVERSIFICATION 19 2019 ACTUAL PRO FORMA FOR DISPOSITION AND ACQUISITIONS Corporate - Group, 21% Leisure - Group, 7% Leisure - Transient, 34% Corporate - Transient, 38% Corporate - Group 20% Leisure - Group 7% Leisure - Transient 37% Corporate - Transient 36% 41% LEISURE 59% CORPORATE 44% LEISURE 56% CORPORATE % of Room Nights Note: % of 2019 proforma EBITDA
STRONG RESORT MARKET PRESENCE OVER 60% OF HOTELS LOCATED IN DESTINATION LEISURE MARKETS MARATHON, FL DESTIN, FL HENDERSON BEACH RESORT CAVALLO POINT TRANQUILITY BAY RESORT VAIL, CO DESTIN, FL THE HYTHE, A LUXURY COLLECTION HOTEL HENDERSON PARK INN FORT LAUDERDALE, FL WESTIN FORT LAUDERDALE BEACH RESORT HUNTINGTON BEACH, CA SEDONA, AZ SONOMA, CALAKE TAHOE, CA KEY WEST, FLKEY WEST, FL HAVANA CABANA MARGARITAVILLE BEACH HOUSE KEY WEST BURLINGTON, VT CHARLESTON, SC RENAISSANCE CHARLESTON HISTORIC DISTRICT HOTEL DENVER, COCHICAGO, IL THE GWEN, A LUXURY COLLECTION HOTEL SAN FRANCISCO, CAPHOENIX, AZ KIMPTON PALOMAR PHOENIX LUXURY RESORT LIFESTYLE RESORT URBAN LIFESTYLE SAUSALITO, CA SEDONA, AZ NEW ORLEANS, LA BOURBON ORLEANS HOTEL THE LODGE AT SONOMA RESORT 20 L’AUBERGE DE SEDONA HOTEL EMBLEM THE CLIO, A LUXURY COLLECTION HOTEL JW Marriott will be reflagged as The Clio Q1’22 HILTONBURLINGTON LAKE CHAMPLAIN ORCHARDS INNTHE LANDING RESORT AND SPA KIMPTON SHOREBREAK RESORT
HIGH QUALITY PORTFOLIO IN KEY GATEWAY MARKETS NEARLY 40% OF HOTELS LOCATED IN TOP GATEWAY MARKETS ATLANTA, GA ATLANTA MARRIOTT ALPHARETTA BOSTON, MA SALT LAKE CITY, UTNEW YORK, NY FORT WORTH, TXDENVER, CO CHICAGO, IL CHICAGO MARRIOTT MAGNIFICIENT MILE WASHINGTON, DC WASHINGTON, DC SAN DIEGO, CA HILTON BOSTON DOWNTOWN-FANEUIL HALL BOSTON, MA NEW YORK, NY WESTIN BOSTON SEAPORT COURTYARD DENVER DOWNTOWN WESTIN WASHINGTON, D.C. CITY CENTER THE WORTHINGTON NEW YORK, NY WESTIN SAN DIEGO DOWNTOWN COURTYARD MANHATTAN/FIFTH AVENUE COURTYARD MANHATTAN/MIDTOWN EAST HILTON GARDEN TIMES SQUARE CENTRAL SALT LAKE CITY MARRIOTT DOWNTOWN 21 EMBASSY SUITES BY HILTON BETHESDA EFFECTIVE 2/1/2022
22 ESG LEADERSHIP
ISS ESG RANKINGS(2) ISS-ESG CORPORATE RANKING Currently Ranked in Top 1% of all US Real estate companies DiamondRock ranks in the top 5% of the Worldwide Real Estate Sector, earning an ISS ESG Prime designation 3ENVIRONMENTAL 4SOCIAL 1GOVERNANCE GRESB ANNUAL RESULTS 2017 2018 2019 2020 2021 DRH GRESB Score 53 75 81 84 86 Peer Score Average(1) 57 58 69 69 72 Index to Peer Score Average 93% 129% 117% 122% 119% RESPONSIBLE CORPORATE CITIZEN 23