DiamondRock Hospitality Company Reports First Quarter Results
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Category: Worldwide - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on Wednesday 30 April 2008
DiamondRock Hospitality Company (the
“Company”) (NYSE: DRH) today announced results of operations for its first fiscal quarter
2008, which ended on March 21, 2008. The Company is a lodging focused real estate
investment trust that owns twenty premium hotels in North America.
First Quarter 2008 Highlights
• RevPAR: The Company’s same-store RevPAR increased 0.3 percent.
• Hotel Adjusted EBITDA Margins: The Company’s same-store Hotel Adjusted
EBITDA margins decreased 186 basis points.
• Adjusted EBITDA: The Company’s Adjusted EBITDA was $30.2 million.
• Adjusted FFO: The Company’s adjusted funds from operations (“Adjusted FFO”) was
$23.2 million and Adjusted FFO per diluted share was $0.24.
• Dividend: The Company increased its quarterly dividend to $0.25 per share during the
first quarter.
William W. McCarten, chairman and chief executive officer, stated: “DiamondRock’s first
quarter results were consistent with our expectations. Excluding the Chicago Marriott
Downtown, which was significantly impacted by our renovation, operating results were solid
with same-store RevPAR increasing over 4 percent. We are also pleased to have substantially
completed $55 million of capital projects at our two largest hotels, the Chicago Marriott
Downtown and the Westin Boston Waterfront. At these two hotels, we have added an
incremental 54,000 square feet of meeting space and increased the overall food and beverage
offerings.”
Mr. McCarten added, “Macro economic trends continue to soften and we expect that lodging
fundamentals will moderate for the balance of 2008. However, we expect a wide range in
operating performance among our markets. For example, New York City should remain strong
while our outlook in some other markets, including Chicago and Boston is softening. With divergent market trends and a softening economy, forecasting the performance of our portfolio is
difficult. As a result, we now expect full year RevPAR growth to be at the low-end of our 2 to 5
percent range.
Despite some likely headwinds in lodging fundamentals, we believe that DiamondRock is well
positioned to deliver strong returns over the next several years. We have significantly invested in
our portfolio over the last three years with renovations, repositionings and expanded meeting
space. Our capital structure continues to be a great competitive advantage. With one of the
lowest debt levels in the industry, we have the capacity to opportunistically acquire hotels,
repurchase stock, and invest in our existing portfolio.”
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