DiamondRock Hospitality Company (DRH) Investor presentation summary

Portfolio overview

• Operates 34 properties with 9,400 rooms across 26 geographic markets, diversified by demand segment and location.

• Portfolio includes luxury and lifestyle resorts, urban lifestyle, and urban gateway hotels, with 57% of revenue from leisure-focused properties.

• 100% of rooms are third-party managed, providing flexibility, cost control, and the ability to quickly implement new technologies.

Strategic focus and capital allocation

• Targets long-term FFO/share growth and dividend yield 100-200bps above peers, with embedded dividend growth.

• Actively recycles capital by selling low FCF-yielding assets and acquiring higher-yielding investments, enhancing portfolio returns.

• Repurchased shares at a ~10% implied cap rate since mid-2024 and streamlined executive team to reduce G&A expenses by $3MM annually.

Financial performance and guidance

• Q1 2026 results exceeded expectations: RevPAR +2.5%, TRevPAR +8.0%, Hotel EBITDA +2.0%, Adjusted FFO/share +15.8%.

• 2026 guidance updated: Comparable RevPAR growth 1.5–3.5%, Adjusted EBITDA $290.2–$302.2MM, Adjusted FFO/share $1.10–$1.16.

• Maintains stable annual capital expenditures at 7–9% of revenue, with projects scheduled through 2030 to minimize earnings disruption.