DiamondRock Hospitality Company (DRH) Q4 2023 earnings summary

Executive summary

• FY 2023 comparable revenue reached a record $1.1B, up 4.0% YoY and 11.3% vs. 2019; comparable Hotel Adjusted EBITDA declined 6.2% YoY.

• 2024 guidance points to 2.0%–4.0% comparable RevPAR growth and Adjusted EBITDA of $260M–$290M.

Financial highlights

• Q4 net income was $11.0M and diluted EPS was $0.04; comparable revenue was $261.3M, up 0.4% YoY.

• FY net income was $86.6M and diluted EPS was $0.36; actual revenue totaled $1,074.9M, up from $1,001.5M in 2022.

• Q4 Adjusted EBITDA was $57.3M, down 15.0% YoY; Adjusted FFO was $38.6M, or $0.18 per diluted share.

• FY Adjusted EBITDA was $271.7M, down 3.2% YoY; Adjusted FFO was $198.5M, or $0.93 per diluted share.

Outlook and guidance

• FY 2024 comparable RevPAR growth guidance is 2.0%–4.0%; Adjusted EBITDA guidance is $260M–$290M.

• FY 2024 Adjusted FFO guidance is $187M–$217M, or $0.88–$1.02 per share, based on 213.5M diluted shares.

• Guidance assumes corporate expenses of $33M–$34M, interest expense of $61.2M–$63.2M, income tax expense of $0–$2M, and 3,571,062 available rooms.

• Expected 2024 hotel capital improvements are approximately $100M, including projects begun in 2023; several repositionings and renovations are slated for completion in 2024–2025.