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.

• 58% of EBITDA comes from lifestyle resorts, with the remainder from urban gateway hotels.

• 57% of portfolio revenue is generated by luxury and lifestyle resorts, with 100% of these hotels unencumbered by management contracts.

• Urban group and limited-service hotels account for 32% and 3% of portfolio revenue, respectively.

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, such as recent sales and acquisitions in 2024-2025.

• Repurchased shares at a ~10% implied cap rate and streamlined executive team, reducing G&A by $3MM annually.

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

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 (post-sale): Comparable RevPAR growth 1.5-3.5%, Adjusted EBITDA $290.2-302.2MM, Adjusted FFO/share $1.10-1.16.

• Invested $20.8MM in Q1 2026 capital improvements, with $80-90MM planned for the year.