DRH - Earnings call transcript Q4 2024 | DiamondRock Hospitality Company

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Operator

Good day, and thank you for standing by. Welcome to the DiamondRock Hospitality Company Fourth Quarter and Full Year 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Briony Quinn, Chief Financial Officer. ahead. go Please

Briony Quinn

and Call everyone, DiamondRock's Quarter Fourth Good Webcast. welcome Earnings and XXXX morning, to

Joining call and on and me today's Justin Executive our Leonard, Officer; Chief our President Chief Officer. is Operating Jeff Donnelly,

we comments are to our be Before many statements under are facts today let everyone not me that begin, federal of and forward-looking historical considered remind securities laws.

and from results filings with are we numerous risks statements to today. the subject future cause materially these our uncertainties SEC, in could described what As discuss differ that to

In addition, be non-GAAP directly of to on earnings today's will can discuss most in found call, this financial certain we release. comparable the measure press reconciliation information. financial our GAAP A information

which better quarter, anticipated in XXX ahead we strong, stronger came We XXXX, expected. X.X% going than quarter. be into already the and in the results are pleased to quarter, that to even report total our prior expectations well our than over achieved over RevPAR Comparable of the increased growth points fourth for basis the

The pronounced urban November in most in daily increase particularly at a in December. on our upside rate. RevPAR X.X% footprint, urban and expectations our average our X.X% hotels to increased was

by affected performance was than in expected. we originally more U.S. November less importantly, was for the X election favorable And December calendar the reasons.

to First, there were days in XX of compared XX December XXXX. as in business days Christmas ahead

team Minneapolis total generating I and also XX% Salt RevPAR our prior than markets, Chicago, to in want by Hanukkah The ownership. at first or exceptional RevPAR Secondly, to later calendar our urban up growth Diego all X in of XX% full the hotels across month our RevPAR the with XX.X%, year. for XX these recognize and started on shifts growth December combination weeks San December calendar AC led the led nearly of Boston. Lake,

contained total our decline. basis quarter, basis XX out revenue XXX spending, point at points were to mixed. quarter but Fourth of resort the in room a results hotels RevPAR declined

characterized but as visitation, Florida market we're Florida owing continues cetera, to XXXX. from heavy headwinds, fans in see hangover inflation, Florida, a can best footing relocating et to hopeful the the be its finds pandemic, to what price

collectively in X.X% decline resorts Florida saw RevPAR. Our a

excluding While our is the X.X% which resorts, quarter. other grew Orchards under Inn, all in renovation, fourth RevPAR

Chico quarter. nearly RevPAR our Hot on as strong marketing growth XX% growth, revenue Vail strategies Sonoma had again Springs EBITDA continue management Both performed and well, out play XX% delivering revenue growth to that and the fourth ADR hotel. and in at over

the room increased revenue quarter urban beverage and XXXX has Group X.X% At quarter our revenues XX.X%, a strongest a food increase increase increased drove which XXXX. it in nights. in fourth total throughout as X.X% Fourth hotels, group our over segment remained group in revenue. room on X.X% room

resorts to essentially We strategy continue This deliver a build profitability. on to revenue. improve transient resorts base EBITDA our group allowed to at to our to and growth preserve add flat pricing us

was XXX in operations Turning over XX% that representing Corporate share, $X.XX $XX.X points $X.XX million, XXXX. on $XX.X reflecting XX% basis fourth million, was was Hotel per or over adjusted XX.X% from a growth funds was EBITDA to XXXX. profits. over higher. XXXX Adjusted EBITDA the adjusted margin growth quarter almost

we per In we share per to throughout XXXX. $X.XX paid had for quarterly common dividends per regular end and quarter, we total, XXXX. would a paid the dividend we Before At let me I turn to addition $X.XX on the share and events, touch in the pay sheet. discuss of strategy, our call balance share fourth dividend stub $X.XX outlook the Jeff of dividend to over recent our announced

additional was understood. stub fact, on share change that of of reference quarterly this sure $X.XX per analyst XXXX, depending share our $X.XX material the I'm a income, quarterly in per $X.XX quarter. in dividends first our and regular to pay dividend for so per last in an And fourth announcement, outlooks dividend, share. communicated common we With reports XXXX our Several night, intention quarter dividend and not widely the still we announced operating

Turning to sheet. the balance

of have maturing loan totaling of just that basis mortgage maturity as a or shy points XXXX X.X%. weighted early Moreover, over in approximately We we average million approximately X of XXXX had of XXX average loans year-end, a term have an at million $XXX in cost SOFR. cost X.X% $XXX

preferred X.XX% our callable is stock August. in Finally,

inaugural maturities of We and continue our issuance, an placement credit combination to through of review the of options mortgage facility. to these corporate debt a refinance debt recast corporate most cost-effective a

swaps the Included in XXXX as late discuss, we we a that maturing will at slightly this, loans interest we rate. expect we interest be in our high Jeff XXXX. the are expense in interest the overall lower of rate replaced XXXX X% year do executed assumed to benefit have full Despite guidance realize

I'll note, that the turn to On over call Jeff.

Jeffrey Donnelly

and thank this for to you for the team just expectations, but DiamondRock the not morning. year. Briony, Thanks, fourth Kudos joining exceeding in all quarter, at us entire throughout the

busy been very has year. It a

steps asset G&A Our Justin, Board reduce Under to costs our and our managers exceeded took throughout the performance efficiency. increase year.

and our costs year year. our guidance. capital rationalized and RevPAR times several Moreover, full original share to which maximize our design exceeded we and raised per team construction growth, Guidance, EBITDA impact. total AFFO fact, we expenditures the throughout In adjusted minimize

and data improve accounting and our and without new hitch. financial handle implemented human expedite seamlessly finance this systems reporting team task and to they [ ] analysis, Briony, Under a

helped and to legal otherwise been might the third that have a been has work internalized outsourced costly policies, update a party. to corporate Fischer governance strengthen Anika addition She team. And terrific

team accomplished in so I positioned also our what the for our for proud future. receiving Light I'm applaud entire are Leader corporate in to how want Award of of we we've NAREIT's and responsibility success. the recognition

Champlain the renovation at Westin and the Diego and at of Orleans with me capital Fort Bourbon Lauderdale, Bayview, Hotel we spa XXXX, Westin room projects. San start rebranding completed Let a to the among other Burlington expenditures. In renovations Hilton

be $XX options. a be The public of sense at the million. to completed spaces expand in Westin XXXX, used rooms improve will of arrival and XXXX The area [ grab-and-go provide Diego the will completed food ] San where and early in monies were bar cost at

spent beverage about in $X fee hotel. million can the We destination redeem introduced at updating that and corridors. Bourbon We and Orleans guests the a the food rooms for credit

eliminating Fourth enhance overall to the prior quarter lobby increases. income reduced outlet Recall, and is we scope and here, continue pool about addition of the to the see XX% other a over ROI. renovation F&B year, of the area our RevPAR we up

year, outlet XXXX. these expenditure our beverage to see We're in sales and venues. aiming enhanced in up million Champlain more $XXX,XXX X Hotel XX% million for $X over upwards of food F&B June, opened of $X nearly The in at profit of months last incremental We and arrival outlets. the or were the from These prior need the year. in F&B

renovation Lauderdale we a endeavor, $X.X spa on very million Fort the rapid a expect which was Lastly, in payback.

XXXX, fall. the and to we orchards and expect to and the product with Sedona summer well rooms finished is amenity new underway, XXXX, in Looking the by be pool of by the redevelopment repositioning

come remaining We've spent XXXX, the and will about million far $XX XXXX. $XX in thus in million

half project QX. expect year QX year, significant On about than We when $X.X will as of million in we year-over-year more we the expect about disruption basis, XXXX. in EBITDA the be million is repositioning expect this full a first complete cause in in $X.X of improvement will disruption the late

just of the and the to working is moving work of refine are deliver as expansion and We'll whether we as Bourbon to Tahoe more Lake renovation in impactful with done. scope to quarters we ROI, Orleans. the to more how the update coming forward. we're be did an Resort in Finally, Landing have There a

in we to It Dagny of an back the branded. on is hotel it August mid-XXs repositioning, up to #X all hotel remains a of TripAdvisor performance XXXX. when in important The the Boston, from was converted circle independent to

go and control decision strong, XX% that to expense year, was not drive about has for the independent the the although decision revenue, was to the quarter about X% higher been profitability. up in Now

or unencumbered value Our while thesis was brand that could expensive, simply independent the profits an an enhancing and match improve we was with property. contribution too as

EBITDA report up Dagny that million. year quarter looking for We're million, to of $XX XX% surpassing to was up hotel and for our XX% more by opportunities. $X in the these the pleased I'm budget XXXX

rate talk or intentionally benefit. let's excitement to XXx our capture about Washington, cap the We XXX-room We X% which the million, capture to closed the So recent bidding D.C. $XX EBITDA. sale marketing Westin time NOI postelection trailing and closing inauguration about to the manage a in equates for

hotels Several were D.C. Washington, that we performed their We've last been hotel increases. draft the able has year. rate fortunate expected off renovated the year, the avoid since past to in better uncertainty to the daily The brand family than market. overtaken in associated average and

I the could have return with brand mandated figure this renovation disappointed pushed renovation capital I this we was could higher. that the of our invested I'm not hotel, meaningfully very have room team lobby the real We proceeds pleased and very surpassed but atrium renovation am in the A realized avoided. more anticipated $XX may million.

is especially sale not cash investment Given yield incremental Washington, why return free closer is on to we produced have the rate and flow market on our the believe dynamics not a been and if submarket, That wasted capital. D.C. in the lower. cap could felt I X%, your

We through the we are are which are investing. hotels. medium collectors of not merely They

and here are your reinvest We to invest, capital. harvest

do shareholder Our if drive to cannot. you again return to or total job again to capital is and this we return

unrealistic they Today, continue road, can making particularly Lenders the for it to kicking pool an price. unless is undercapitalized deep. growth the easy receive down opportunities the of external are not owners

our preferred for look and debt prune attractive we continue source our are hotels most options the cases, some even shares, among our will can where in portfolio deployment to we We for of today. opportunities to common feel pricing. funds, accretive realize at Even our equity,

Let's outlook our XXXX. get for to

the to We expect expected year. grow be for RevPAR is in growth. X% to Total line RevPAR growth to RevPAR X% with

digits. group continues of high year, about to pace the for which XXX pace year, our single a revenue the Our our group mid- to since quarter XXXX is -- group point In in first up X%, single basis pace is the the in about up half to call. improve mid- improvement third with

at of to pace victim calendar found from its strong half benefited back XXXX own Chicago The National the of is Convention in Marriott and year-over-year headwind Democratic our Marriott. Recall, throughout the the a Chicago the success. XXXX, group a August of

if we points to basis exclude data nearly revenue comparable DiamondRock's back Marriott interesting pace under XXXX, XXXX just year from to the Chicago X% full an XXX X%. of group As the half close point, from increases just

end the in Since still but we've half the early, Marriott's of sales is basis it's where excels. of revenue Now over group X,XXX the Chicago by increased pace the third large second quarter, Marriott points. seen XXXX

this optimistic gap. we're narrow So we'll

company-wide demand Looking revenue up XXXX, pace rate growth. ahead is and strong on room XX% to

So remain encouraged. we very

front, On remain the resort cautious. we

continue proposition leisure. And declines. of We issues, resurgence will a and the in expect combination first guidance quarter, see of foreign to inflation as markets we concerns destinations headwinds such value Overall, leisure Florida expect expects of RevPAR such mid-single-digit continued due the known the our job new see in as uncertainty. will to and softness

year. the As EBITDA disruption but the back end we in about but by $X.X the see the of Orchards $X.X to million half first I expect get the mentioned of of all earlier, to million year, expect we about at

removal with million compensation, Minneapolis guidance. as to slightly Westin XXXX impact XXXX EBITDA of is D.C. the $XXX the is midpoint. the sale adjusted behind well to range adjusted Continuing expected net and Adjusting in of $XXX of AC for million. acquisition the the corporate be XXXX at share-based as the EBITDA

we range Briony of assumption a to is recast corporate possibly in of mortgage debt loan and is of of per issuance, be Adjusted adjusted mentioned, execute a work and to million, be million As a a share in guidance some on financing XXXX, will hotel. and $XXX facility combination our included $X.XX have range credit we FFO in bit do to the to to $X.XX. $XXX in expected the FFO expected the is

free sheets I the earnings. to consider shareholders reinvest to cash In between dividends on flow after is create, encourage and DiamondRock cash return share, dividends. on focusing in higher is share that repurchases, conclusion, The and and increasing FFO through disparity generate the and portfolios FFO more aspect One our capital metrics can per balance free cash flow free earnings expenditures conditions. share. asset to of sector. valuation most The flow can in folks physical we to is normalized assessment per their focus evident and of preserve more that means

on these instead EBITDA. consider to of ignore metrics So metrics financial it's important differences, them, focusing as that that such the reveal

your your that, take I and for we'll time, With thank will you questions.

Operator

question [Operator Fargo Instructions] Dori And Securities. our Kesten comes Wells first of from

Dori Kesten

think Jeff, oversimplification your Can peers. of one sense RevPAR and all just expectations to tends revenue across X% not there BT us to I an up a guide, broadly highlight the applying of your company's with immediately leisure be you trends demand to aggregate why align group that X% may give portfolio growth peers?

Jeffrey Donnelly

relates -- would I to top Dori, that of mean your the footprint. I off a say lot

I tends we've really, Just broader to more luxury example, I lot side, on where it's weakness for properties like, we speaking little headwind. that in Florida, as a where, at sort more, lot set, the our be tend be what say, in popular think we leisure or to been Florida, priced to, of portfolio to of a outside frankly, where referenced that the the much of appeal of where haven't of a would of a our consumer seen sort leisure a seen end

we segment. necessarily ranking we a could standpoint, BT location X% back and by tend segment think think by BT to being of would you group have available from think do to that I that but I we than better tend the than more because better budget leisure, a I into budget to X% hotel by than give we don't

Dori Kesten

you about talk Center? today talk volume competitive Okay. the process X ago? seeing City And That's deals maybe you're what of -- can guess Justin, highlighting then about you're you you today say, for transaction talked front, about seeing fair. the I the on how just And off-market the then Westin was months can versus,

Justin Leonard

at of significantly I mean, down about versus volume of the looks volume, XX% I we're think run from and as seeing, I transaction pre-COVID kind rate. we'd is volume. kind everyone prior down transaction Sure. transaction think it still see like

So there very I done. transactions few are think are that getting

the pretty which seen if you of of across some of think stuff are bid very I I large we line, have the really volume, and mean that not lot a finish get out there's a back significant driving lot a transactions, ask. still

particularly at and while lot So out market. -- the of soliciting there soliciting that number I we're sort in haven't selling wouldn't and we we're a bids of bids a actively people say that like, seen force

think still drop transaction sort And market. rates, is of think happened see to So were pattern. similar saw the what's given really at I in optimistic market that I be X it's a drive quiet incremental to a seems a but we pretty that rates, stuck what people months volume, off might and holding ago, we'd think interest I some to

Dori Kesten

coming guide then level your 'XX And operating 'XX? further one. in Okay. last are Does assume achieved efficiencies hotel those off

Justin Leonard

particularly by I our mean the bit little driven beverage was to majority growth business. we're of which segment, incremental expense from year food of the a of group seeing lot service slowing just and great a labor of had rooms growth. food vast and revenue growth think growth came expense that our I A last beverage growth our and lot of year. group

I So to as labor bit, number. a pace slowed our group a we're has that see think slowing growth little of going

productivity we've on within been portfolio. focused But also the very

put visibility gives best year portfolio. we able that and into highlight business and tool throughout really the in of been and practices think P&Ls, a to us we've transplants inefficiency lot the I some sort more intelligence place hotel last individual

Operator

Austin next Wurschmidt KeyBanc Capital from question of Our comes Markets.

Austin Wurschmidt

that course overall think are process? where resort part that drag the relative there of quarter of assets into you this are portfolio are mean, you -- for the maybe in the in year. in a thinking you how just and a has I past bit this strokes year, just as the we broad look -- assets early to patterns? the of continuing the normalization little where curious referenced over Florida the out But you maybe given about normalization resort the subset Jeff, from been result we And of

Jeffrey Donnelly

it's thinking mean, year But to saw just over half as wish about We're expectation half like year in in to back belief declines stick to the the is we the question. subside. ball No, great a the find and us think It's I begin our be what will a that. comp clear, that 'XX, of of recovery. crystal back hockey we its in Florida, this year-over-year will expecting begin footing that Austin that bit. a not any on we're had a is of particular, to I Yes. I the begin how little

how we're So that's it. about thinking

for uncertainty to I in the is think I get there's right To that's economy. and up tamed little something difficult inflation there mean seems a moment, of back lot be a just step unemployment a bit. to now

consumers that are more some And that's as a we're as those, think a under outlook I on little for be why popular bit recognize of describe we more the So of -- cautious I resorts. to pressure. continue price it

Austin Wurschmidt

then moving That's to how other maybe mandated flow. cash it's Westin and CapEx the kind your all that at your forward for D.C. free helpful. options projects? of just you and down considering comments about evaluate with large And staring have better hotels you're continued thinking other projects guys with to those Any managing that's CapEx on me. And of instead convey

Jeffrey Donnelly

pay some actually we large also can expect that you for be large It them, the doesn't how just in dollars it be earnings mean of say to of out market relative terms. and would absolute to have I hotel. I will in Yes. just of hotel in that that necessarily sort to the relative

sort the be mentioned CapEx next where very to to equating that actually could is potentially the of the over come the past they few bill the of of some hotel. NOI fit properties years would we've in noncore So close the can

you if anything know don't have I add or? to

Justin Leonard

portfolio to we're sort actively of I some capital figure of No, the of those for think out I and try buck. at trying dollars. renovation order think and more get best cycles to in use our been We've looking the elongating bang

are that price. capital trade some ones a the amount necessarily a think of of the I to not that for premium significant Unfortunately, are assets require going

a the come balance where be So at those a may will looking more of CapEx that's through Jeff that number the biggest really price from some we're I of necessarily but it as perspective, making assets, as think It were said, it. but and little not markets bit optimistic about, market in large. may that the percent the a value number is actually CapEx total

Operator

next Citi. comes from Our question of Rose Smedes

Bennett Rose

yours if wondering the any level in and in just you some and you're share forward? 'XX? was on thoughts are of maybe was increase I for What could -- expecting a what seems kind pace wage like the than bit lower maybe your benefits property going peers. labor And little of It just labor 'XX?

some So just around numbers I wanted to put it.

Justin Leonard

Yes, salaries and year. saw picked year. But the of X% Sure. the increase up of a by mentioned our it of at the benefits benefit driven for X% wages, I lot this about had amount we wage Sure. food were growth we the we we've massive is wages totality, really actually growth And towards and Salaries beverage. and -- saw about XX.X%. think we up end about and and abate in in

XX-plus and beverage year, to beverage a year and significantly really end got abate we percent labor. to growth then the more growth food by slowed saw about number food that we Then to year-over-year significant we And food a comparable the was to that saw and as and the that we of X% So growth quarter. and prior. beverage is third of had got had the driven lot as fourth as

Briony Quinn

assumes grow XXXX our wages around And and that sort will benefits of guidance X%.

Bennett Rose

still thoughts? we would the or Okay. know you 'XX just -- And we I to continue as to the -- your do have pace you is year young. expect I kind into guess, general of slow, go

Justin Leonard

jobs pace more the applicants, we're labor sort we it's a little of pressure of seeing I and growth majority markets. seems marginally, to applicants that break in that probably positions, slowed open our market definitely the I And wage I for have think bit. of less job think think The saw. more with not there's

Briony Quinn

we is That's reset true. we will limited York, only service only would that the X for And there. have have contract thing XXXX us in hotels I in union a say New but

So impactful XXXX. the as if of as will us that but that for in shouldn't lot full-service have be we a headwind, hotels, will, you

Bennett Rose

dividend Great. stub And would loss run Westin. $X.XX the ask dividend to going a you and you can Or to you quarterly you dividend, expect dividend. then Based on I the now, pay think against I rate mentioned on stub then a be sale kind guidance of to have wanted payouts? your -- potential of that on a the dividend? count the -- be Does required just

Briony Quinn

true. that's Yes,

We will have D.C. on a loss

be, think fourth lower tax I we what tell our that the stub loss you might the expectation. the little loss. a GAAP than pay that dividend expect in is will that's do a quarter. actually I But I but today can't

Operator

Bellisario Our Michael Baird. comes from next question of

Michael Bellisario

how Just dialing go And to Are a maybe you just you are Or New changing your potentially should into because also in lower? different the to to just and in returns view there? landings. and you be these back cost in something are Orleans. about CapEx dig that seeing refined markets did investing you back what relation where want the second, of inflation maybe at scope for spend fundamentally much

Jeffrey Donnelly

in. and like I related out, actually than we of as mean, you -- a Bourbon, work higher are something in was join are was the some we went aside bit think think pursuing. you are the whether And that additional about to moment, that I beverage really outlets of a food and to go there something then I as when the little can some such and renovations bars bid our there expectation. scope there it perspective. more setting Justin and doing and to actual And expenditures design, cost think frankly, sheer that from trigger don't or cost operating trigger were room in you that's chime going I that want be not return staffing, the a for case, I'll expenses, meaning, are to that think costs, the have adding to it and they like that kind incremental

in I produce on we Bourbon, could case room and just that of tend spent than beverage of we destination followed, run food to with money had return the and felt that think So the the the a better effectively margins. incremental building renovation if fee all lower outlets that generally

the F&B one. was about it that thinking option the for for side really minimize but just and had outlets can't where return. biggest the like on about doesn't So we mean that's how just the can hold thought we that that future, dollars generate It we

speak can Justin landing. the to

Justin Leonard

Yes.

lending, I about comes we're is dollars more for invested. trying just [indiscernible], think, when true capital to to potential it disciplined be what the ROI

initially the we optimistic. And that, it's high that in run we a I could we're for to if see higher room about little came just was our project. costs think back that entitlements we drawing utilize than additional what And of a going originally some doesn't that It's a we a on in board added into really priced given to we to only year. it, had way, when fact hotel rooms, a build a to but product, in portion we nights. do find anticipated, way terms thought occupancy have more little underwriting the entitlements, of cost-effective with but occupancy I those kind taking additional overly better get the of the combined incremental occupancy We XX us of XX do premium think good we to can some it dug perhaps occupancy

Michael Bellisario

as Got markets then you And just where And exist does it. up there. in on Chicago, progresses? maybe the just in pace from helpful comments you year see pick filling what did what Understood. since XQ? guys potential hotels, That's continue portfolio still aside the to the the the made, group

Justin Leonard

Yes.

of hotels some sort nice midsized urban think movement. our some I of had

So Lake, year. of Denver, the business a the amount decent Diego, of movement Salt close had and end all San towards some decent

some So progress. I think seeing good we're

we Salt in are renovated, think of group I some hotels starting to close a see that I particularly benefit group business. [indiscernible] able X invested. of to the On Lake little Diego, just dollars which think bit tours, of San we're those and we're more

Operator

of Evercore ISI. Duane question next Our comes from Pfennigwerth

Unknown Analyst

is on Peter for This Duane.

comp you guess, quarter I comp could the us the year, on this think RevPAR? you by certain to is Super like about tough sounds D.C. the in And it benefit in easier particular, of the Jeff then XQ, in down, the growth other Justin, inauguration resorts quarter, anything a quarters? the expected or So in help Throughout if Florida year, in shape highlight you be a of but Bowl. RevPAR maybe did that get would and

how it the rest year. So of just kind and evolves of help us XQ the then through think about

Jeffrey Donnelly

will quarter, in bit our little said at look typically and you the It's side. that's first of be will the RevPAR year. I Florida remarks, the of say, our a part Really, would be to and it two the we're we than markets cities, that my in be peak, we're I remaining on quarter resorts tale like expecting, toward driven. it's when quarters. in be of I bit in would their expectation the say, when think little And at I it as it, where think that of the at softer first overall, our is looking a mean, is little like the average I or softer a very tend leisure soft expecting resort markets first -- to be a

visibility. have year, urban markets we tend when to better toughest and the side that's urban a August of As our the remainder probably the little we fare bit say on would move I QX. comp the is through little a more

Unknown Executive

August August. in yes, Well, QX.

Jeffrey Donnelly

and Chicago, also Convention August very good the the because in had quarter, group we thus pace. through came Democratic National fourth

what, when blend rest first X I relative in maybe of the to it in going year the sort together, X% the you to the, the the But range is and quarters. X% remaining side on be relatively would lower to think, say, quarter, I of

Unknown Analyst

side, guess highlight very And year, that you then be just in anything little you've expense That's that's bit some for a to I better your maybe than expense on the of this which peers. helped initiatives kind growth helpful. particular could taken, seems

Justin Leonard

Yes.

found the bullet. haven't We magic

just in from focus and of enacted particularly I assets. to are -- better little into those that really been dig figure we've labor and a really think those utilize and having a place lot productivity some it's managers, that some think can able sort productivity, some we've some a out where of the a that we of I where And and of management other to to on utilize tools productivity. the bit higher of tools, drive we rooms hotels able think deeper at rooms at our try I in flow-through successes are are standards and

I think that's really success. had where we've

labor just of that do tackling increased offset inflation. So the with a wage like how of and blocking of some kind to in we cost hopefully increase of it's combat bit productivity

Operator

Point Van from Our question Dijkum of comes LLC. Floris Compass next

Floris Gerbrand van Dijkum

to what and Jeff, on look I your down balance FFO comments to structure dividends. the why the capital what pays at the and actually important appreciated comes sheet it's and

or fact this, maybe on if interesting at most most that just there where we sort if at than projects on cheap buying the would the want I own is better stock you I maybe your could attractive What of alluded the and you guess, potentially portfolio the -- are well, frankly, get -- to you of make stock can best and your you higher returns things, find look your out you -- FFO but available? if -- of I as But peers look look your One ROI back? your the think, returns. today, to expound can as at you both about talk EBITDA. opportunities today

Jeffrey Donnelly

Yes. Thank you Floris. share for attractive. are the mean, I certainly, question, repurchases

in is what and think I adjusted, in the Westin the when funds, a look thinking sold you D.C. just think of and for were than much of Westin shares same at source do we for portfolio, it's flow we yield where and consider the if we saying of -- free you conceptually we're better our DC. you could it our CapEx cash you sort sort that our example,

investments other There's well. as

projects able funds, depending understand on those ROI there opportunities we're also, structure, our source because leverage risks be And pay off there mentioned, call most. debt us, portfolio are our accretively can than the to preferred. pieces capital better you reduce some for of As within where, to our of and or

of So out costs, XX a a there's compelling those we'd caps at Right now, options. opportunities of mean, not replacement that all love to external and fraction but there. we finding look do lot be growth of at just I

Floris Gerbrand van Dijkum

my maybe follow-up And question. Yes.

going Is think hotel you X it's think you going you years' -- asset million portfolio terms you time? your in a As single the composition, another guess, to I concentrated? D.C. of do sold in be it diversified hotels of more to about $XX portfolio be exposures? see How Or do more in

Jeffrey Donnelly

I guess be it diversified. I'd believe will like that more to

if skew we're I larger to our towards would will asset allow capital little be assets. continue years that, And us that next expectation. recycling my few think be that portfolio successful bit would a diversify on there the some to over might sales

Floris Gerbrand van Dijkum

driving of mean, there I of at terms do terms look pretty finding increase it in easier assets opportunities local -- is management, portfolio? in in growth, -- could argue the Are you that And How fewer as are to and the portfolio you you manage. a with of contact benchmarking close having I operations across managing operators. you're all are your And to well? your is guess you

Justin Leonard

candidly, I else. a a No, most and just assets. than like brand percentage levels. the and have that gives We in It portfolio, staffing our of the procedures the by degree, just assets. far can we we're ultimately managed. of lot in everybody dictate able really and our a us of terms think -- third-party of operations lot policies to harder say Floris, individual most To the of work We're higher some the on we managed think I

say mitigation So cost that gives us more in strategies. of a

Operator

like I'd remarks. it Jeff Donnelly I'm to to showing time. no back at further turn for closing questions this

Jeffrey Donnelly

seeing Well, Thanks. the everybody, road. for look this and forward to joining you thank we you, quarter, us on

Operator

conference now This for call. participating, disconnect. you today's you concludes and Thank may

DiamondRock Hospitality (DRH) 28 Feb 252024 Q4 Earnings call transcript