DiamondRock Hospitality Company (DRH) Investor presentation summary

Portfolio overview

• Operates 34 properties with 9,400 rooms across 26 geographic markets, diversified between urban and resort locations.

• Portfolio generates 58% of EBITDA from lifestyle resorts and 42% from urban gateway hotels.

• Leisure transient, group, and business transient segments contribute 37%, 36%, and 27% of demand, respectively.

• 57% of revenue comes from luxury and lifestyle resorts, with 100% of these hotels unencumbered by management contracts.

• 28 of 34 hotels face negligible new supply through 2028, 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.

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

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

• Maintains stable annual capital expenditures at 7-9% of revenue, with projects scheduled through 2030.

• Recent investments include $40.3MM in hotel improvements YTD and $75-85MM planned for 2026.

Financial performance and guidance

• Q2 2026 results exceeded expectations: RevPAR up 7.0%, TRevPAR up 5.6%, Hotel Adjusted EBITDA up 20.9%, and Adjusted FFO/share up 25.7%.

• 2026 guidance raised: Comparable RevPAR growth 2.5-4.0%, Adjusted EBITDA $310-320MM, Adjusted FFO $245.5-255.5MM, and Adjusted FFO/share $1.18-1.23.

• Increased quarterly dividend by 22% to $0.11/share in Q3 2026.

• Redeemed $121.5MM of preferred stock, providing a $0.03 FFO/share tailwind in 2026.

• Maintains low leverage, no near-term debt maturities, and all debt unsecured and prepayable.