DiamondRock Hospitality Company (DRH) Q4 2021 earnings summary

Executive summary

• Travel recovery drove a strong 2021 rebound, led by leisure resorts; total shareholder return was 16.5% for the year, ranking in the peer set’s top quartile over three years.

• Portfolio repositioning continued through hotel sales, resort acquisitions, brand conversions, and investment in higher-return destination properties.

Financial highlights

• Revenue rose 89.3% YoY to $567.1 million from $299.5 million; rooms revenue increased 102.8% to $399.1 million.

• GAAP net loss was $195.4 million versus $396.0 million in 2020; loss per diluted share was $0.96 versus $1.97.

• Adjusted EBITDA was $83.5 million versus a loss of $64.5 million in 2020; reported results include $126.7 million in hotel impairment losses.

Outlook and guidance

• 2022 U.S. RevPAR was expected to grow from 2021 on leisure strength and an emerging corporate-travel recovery; destination hotels were expected to outperform the broader market.

• Group room nights on the books at the start of 2022 were nearly 40% above 2021 realized nights, or about 75% of typical pre-pandemic bookings; business-travel growth was expected to accelerate midyear.

• 2022 operating profitability faced short booking windows, guest-mix constraints on room rates, labor scarcity, and pressure on labor costs.

• Approximately $100 million of 2022 capital improvements and select transformational projects were planned, subject to potential supply-chain delays and higher construction costs.