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): June 6, 2006
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DiamondRock Hospitality Company |
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(Exact name of registrant as specified in charter) |
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Maryland |
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001-32514 |
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20-1180098 |
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(State or Other Jurisdiction |
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(Commission File Number) |
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(IRS Employer |
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of Incorporation) |
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Identification No.) |
6903 Rockledge Drive, Suite 800
Bethesda, MD 20817
(Address of Principal Executive Offices) (Zip Code)
(240) 744-1150
(Registrant’s telephone number, including area code)
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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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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ITEM 7.01 Regulation FD Disclosure.
On June 6, 2006, DiamondRock Hospitality Company will give a slideshow to its investors at an investment conference in New York City. In compliance with Regulation FD, the slides shown to the investors are attached hereto as Exhibit 99.1 and are incorporated by this reference.
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.
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DIAMONDROCK HOSPITALITY COMPANY |
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Date: June 6, 2006 |
By: |
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Michael D. Schecter |
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General Counsel and Secretary |
EXHIBIT INDEX
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Exhibit No. |
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Description |
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99.1 |
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Creating Value – DiamondRock Slideshow – June 2006 |
Exhibit 99.1
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[LOGO OF DIAMONDROCK HOSPITALITY]
CREATING VALUE
June 2006
[GRAPHICS APPEAR HERE]
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Completed Secondary Offering ($240 million) |
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Acquired 2 Hotels ($367 million) |
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Completed 3 Major Renovation Projects |
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Delivered Strong Operating Results that Exceeded Guidance |
[CHART APPEARS HERE]
Note: January 1, 2006 to May 31, 2006, Source: FactSet
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[LOGO OF DIAMONDROCK HOSPITALITY] |
2 |
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17 hotels |
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7,678 rooms |
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$120 RevPAR |
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11 markets |
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Multiple brands and managers |
[GRAPHIC APPEARS HERE]
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[LOGO OF DIAMONDROCK HOSPITALITY] |
3 |
Comparative Performance – 2006 YTD
Indexed Total Return Price Change
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Total Return of 29% since January 1, 2006 and 49% since IPO. |
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Enterprise Value of $1.6 billion |
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Market Capitalization of $1.1 billion |
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Efficient Capital Structure |
[CHART APPEARS HERE]
Note: January 1, 2006 to May 31, 2006, Source: FactSet and Bloomberg
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[LOGO OF DIAMONDROCK HOSPITALITY] |
4 |
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Brand Conversions |
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– |
Power of the Brand |
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ROI Projects |
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Incremental Value Creation |
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Scheduled Renovation and Modernization |
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Sustained Long Term Value Creation |
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[LOGO OF DIAMONDROCK HOSPITALITY] |
5 |
Brand Conversions
Power of the Brand
[LOGO OF DIAMONDROCK HOSPITALITY]
Brand Conversions – Power of the Brands
Courtyard Marriott 5th Avenue
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Reflagged in January 2005 |
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Rooms renovation Q3 2005 |
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Outstanding RevPAR growth |
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43% in 2005 |
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32.1% in 2006F |
[GRAPHICS APPEAR HERE]
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[LOGO OF DIAMONDROCK HOSPITALITY] |
7 |
Brand Conversions – Power of the Brands
Oak Brook Hills Resort Marriott
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Reflagged in July 2005 |
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127-acre resort |
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384- room hotel and a championship golf course |
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$15M in renovations will start Q4 2006 |
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Projected 2006 RevPAR growth of 25.8% |
[GRAPHICS APPEAR HERE]
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[LOGO OF DIAMONDROCK HOSPITALITY] |
8 |
ROI Projects
Incremental Value Creation
[LOGO OF DIAMONDROCK HOSPITALITY]
Courtyard Marriott Midtown East
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Creating 5 incremental keys |
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$250k of total estimated cost |
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Approximately $250k in 2007 of incremental EBITDA |
[GRAPHICS APPEAR HERE]
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[LOGO OF DIAMONDROCK HOSPITALITY] |
10 |
Chicago Marriott Downtown
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Creating 6 incremental keys by relocating Concierge Lounge |
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To be completed in time for the autumn season |
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New rooms will generate concierge rate premium |
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$300k of total estimated cost |
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Approximately $300k in 2007 of incremental EBITDA |
[GRAPHICS APPEAR HERE]
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[LOGO OF DIAMONDROCK HOSPITALITY] |
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ROI Projects – Adding Meeting Space
Los Angeles Airport Marriott
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Converted closed specialty restaurant into new 3,600 sq. ft of meeting space |
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Implementing strategy to replace $45 contract room rates with $100+ group room nights (RN’s) |
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Group RN’s projected to increase 13% vs. 2005 |
[GRAPHICS APPEAR HERE]
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[LOGO OF DIAMONDROCK HOSPITALITY] |
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ROI Projects – Adding Meeting Space
Salt Lake City Marriott
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Reconfigured a closed specialty restaurant into 2,600 sq. ft of flexible meeting and pre-function space |
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$450k of total cost |
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35% projected unlevered yield |
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Approximately $165k annual incremental EBITDA |
[GRAPHIC APPEARS HERE]
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[LOGO OF DIAMONDROCK HOSPITALITY] |
13 |
ROI Projects – Adding Meeting Space
Bethesda Marriott Suites
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Recently converted 2 “last sell” rooms into meeting space |
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$310k of total cost |
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40% projected unlevered yield |
[GRAPHICS APPEAR HERE]
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[LOGO OF DIAMONDROCK HOSPITALITY] |
14 |
ROI Projects – Adding Meeting Space
Vail Marriott Mountain Resort & Spa
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Recently converted underutilized squash courts into four meeting rooms (4,400 sq. ft) |
[GRAPHICS APPEAR HERE]
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[LOGO OF DIAMONDROCK HOSPITALITY] |
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ROI Projects – Adding Meeting Space
Chicago Downtown Marriott
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On the Magnificent Mile |
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Converting closed specialty restaurant into meeting space |
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4,670 sq. ft |
[GRAPHICS APPEAR HERE]
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[LOGO OF DIAMONDROCK HOSPITALITY] |
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ROI Projects – Adding Meeting Space
Griffin Gate Marriott Resort
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Converting unprofitable restaurant into 2,500 sq. ft junior ballroom and 1,100 sq. ft pre-function space |
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$1.5 million of total estimated cost |
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38.7% projected unlevered yield in the first year |
[GRAPHICS APPEARS HERE]
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[LOGO OF DIAMONDROCK HOSPITALITY] |
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ROI Projects – Adding Meeting Space
Torrance Marriott
[GRAPHICS APPEAR HERE]
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Converting low margin lounge into high margin banquet space |
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$700k of total estimated cost |
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30% projected unlevered yield |
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[LOGO OF DIAMONDROCK HOSPITALITY] |
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Frenchman’s Reef & Morning Star Marriott Beach Resort
Sand Bar Project
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Converted closed service area into a beach bar |
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$145K of total cost |
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80% of projected unlevered yield |
[GRAPHICS APPEAR HERE]
Sand Bar “BEFORE”
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[LOGO OF DIAMONDROCK HOSPITALITY] |
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Frenchman’s Reef & Morning Star
Marriott Beach Resort
[GRAPHICS APPEAR HERE]
Sand Bar Project
”After”
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[LOGO OF DIAMONDROCK HOSPITALITY] |
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Griffin Gate Resort & Spa |
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Converting dysfunctional lower lobby space into 6,500 sq. ft. spa |
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$1.9 million in estimated cost |
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23% projected unlevered yield in the first year |
[GRAPHIC APPEARS HERE]
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[LOGO OF DIAMONDROCK HOSPITALITY] |
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Scheduled Renovations and Modernization
Sustained Long Term Value Creation
Scheduled Renovations - Guestrooms
Bethesda Marriott Suites
Completed March 2006
[GRAPHICS APPEAR HERE]
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[LOGO OF DIAMONDROCK HOSPITALITY] |
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Scheduled Renovations - Guestrooms
[GRAPHICS APPEAR HERE]
Courtyard
Marriott
Midtown East
Completed March 2006
[GRAPHICS APPEAR HERE]
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[LOGO OF DIAMONDROCK HOSPITALITY] |
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Scheduled Renovations - Guestrooms
[GRAPHICS APPEAR HERE]
Courtyard
Marriott
5th Avenue
Completed Q3 2005
[GRAPHICS APPEAR HERE]
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[LOGO OF DIAMONDROCK HOSPITALITY] |
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Scheduled Renovations - Guestrooms
Torrance Marriott
Completed January 2006
[GRAPHICS APPEAR HERE]
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[LOGO OF DIAMONDROCK HOSPITALITY] |
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Scheduled Renovations – Meeting Space
Los Angeles Airport Marriott
Ballroom renovation – completed Q4 2005
[GRAPHICS APPEAR HERE]
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[LOGO OF DIAMONDROCK HOSPITALITY] |
27 |
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Guestroom Renovations |
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Oak Brook Hills Marriott Resort & Conference Center – Early 2007 |
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Orlando – Late 2006 |
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LAX – Late 2006 |
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Ballroom Renovation |
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Worthington Renaissance – Late 2006 and Early 2007 |
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[LOGO OF DIAMONDROCK HOSPITALITY] |
28 |
Renovation Summary- 2005, 2006 and Q1 2007
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Renovated in 2005/2006 |
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Brand |
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Guestrooms |
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Meeting Space |
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ROI projects |
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Marriott Atlanta Alpharetta |
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2007/2008 |
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2007/2008 |
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Atlanta Westin Perimeter Center |
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2008 |
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2008 |
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Bethesda Marriott Suites |
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X |
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SpringHill Suites Buckhead |
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X |
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X |
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Courtyard Marriott Fifth Avenue |
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X |
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n/a |
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Courtyard Marriott Midtown East |
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X |
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X |
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X |
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Chicago Downtown Marriott |
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X |
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2007 |
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X |
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Frenchman’s Reef and Morningstar Marriott Beach Resort |
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X |
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X |
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X |
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Griffin Gate Marriott Resort |
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X |
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X |
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X |
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Los Angeles Airport Marriott |
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X |
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X |
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Oak Brook Hills Resort and Conference Center |
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X |
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X |
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X |
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Orlando Airport Marriott |
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X |
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X |
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Salt Lake City Marriott |
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2007 |
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2008 |
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X |
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Lodge at Sonoma Renaissance |
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2008 |
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2008 |
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Torrance Marriott |
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X |
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X |
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X |
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Vail Marriott Mountain Resort and Spa |
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2003 |
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X |
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X |
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Renaissance Worthington |
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2004 |
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X |
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[LOGO OF DIAMONDROCK HOSPITALITY] |
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Certain statements made during this presentation are forward-looking and are subject to risks and uncertainties. The forward-looking statements made are based on our beliefs, assumptions and expectations of future performance, taking into account all information currently available to us. Actual results could differ materially from the forward-looking statements made during this presentation. When we use the words “believe,” “expect,” “anticipate,” “plan,” “will,” “intend” or other similar expressions, we are identifying forward-looking statements. The forward-looking statements made during this presentation are subject to the safe harbor of the Private Securities Litigation Reform Act of 1995.
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[LOGO OF DIAMONDROCK HOSPITALITY] |
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[logo of DIAMOND ROCK HOSPITALITY]
CREATING VALUE
June 2006