DiamondRock Hospitality Company (DRH) Investor presentation summary

Portfolio overview

• Operates 35 properties with 9,595 rooms across 26 geographic markets, diversified by demand segment and location.

• 56% of portfolio revenue comes from luxury and lifestyle resorts, with 23 hotels and 4,348 keys.

• Urban group hotels and limited-service hotels represent 31% and 10% of portfolio revenue, respectively.

• 28 of 35 hotels face no new competitive supply opening in 2026, supporting stable market positioning.

Strategic focus and capital allocation

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

• Repurchased $37MM in common shares in 2025 at a ~10% implied cap rate and $63MM in share repurchases in 2024-2025.

• Recycles low FCF-yielding assets into higher-yielding investments, optimizing renovation cycles and capital expenditures.

• Prudent capital allocation includes canceling or changing ROI investments not meeting return thresholds.

Financial performance and guidance

• 2025 comparable RevPAR, adjusted EBITDA, and adjusted FFO/share all exceeded guidance.

• 2026 guidance projects comparable RevPAR growth of 1-3%, adjusted EBITDA of $287-302MM, and adjusted FFO/share of $1.09-1.16.

• Outperformed peers in FCF/share growth, with a 2023-25 CAGR of +10.6% and a 3-year TSR premium of +1,400bps.

• Maintains stable annual capex spend (7-9% of revenue), minimizing earnings disruption and enhancing execution.