DiamondRock Hospitality Company Reports Fourth Quarter And Full Year 2016 Results

BETHESDA, Md., Feb. 22, 2017

2016 Operating Highlights

• Net Income: Net income was $114.8 million and earnings per diluted share was $0.57.
• Comparable RevPAR: RevPAR was $179.69, a 0.2% decrease from 2015.
• Comparable Hotel Adjusted EBITDA Margin: Hotel Adjusted EBITDA margin was 31.81%, an increase of 15 basis points from 2015.
• Adjusted EBITDA: Adjusted EBITDA was $258.9 million, a decrease of $7.0 million or 2.6% from 2015. The decrease in Adjusted EBITDA is primarily attributable to the disposition of three non-core hotels during 2016.
• Adjusted FFO: Adjusted FFO was $206.3 million and Adjusted FFO per diluted share was $1.02.
• Dividends: The Company declared four quarterly dividends totaling $0.50 per share during 2016, returning over $100 million to shareholders.
• Cash: The Company ended the year with $243.1 million of unrestricted corporate cash.

Fourth Quarter 2016 Highlights

• Net Income: Net income was $23.9 million and earnings per diluted share was $0.12.
• Comparable RevPAR: RevPAR was $174.91, a 0.3% decrease from the comparable period of 2015.
• Comparable Hotel Adjusted EBITDA Margin: Hotel Adjusted EBITDA margin was 31.28%, a decrease of 16 basis points from the comparable period of 2015.
• Adjusted EBITDA: Adjusted EBITDA was $58.7 million, a decrease of $8.3 million or 12.4% from 2015.  Adjusted EBITDA for the comparable period of 2015 included $7.4 million of Adjusted EBITDA from the three non-core hotels that were sold in 2016.
• Adjusted FFO: Adjusted FFO was $48.4 million and Adjusted FFO per diluted share was $0.24.
• Share Repurchases: The Company repurchased 635,637 shares at an average price of $8.92 per share during the fourth quarter.
• Dividends: The Company declared a dividend of $0.125 per share during the fourth quarter, which was paid on January 12, 2017.

Recent Developments

• Thomas G. Healy joined the Company on January 16, 2017 as Chief Operating Office and Executive Vice President, Asset Management.

Mark W. Brugger, President and Chief Executive Officer of DiamondRock Hospitality Company stated, "In 2016 DiamondRock implemented rigorous cost controls, resulting in zero growth in total hotel expenses, a record for the Company.  This strong asset management led the company to achieve its original EBITDA guidance despite a softer demand environment.  With the recent addition of Tom Healy, a proven industry leader, as Chief Operating Officer we look to build upon this success."  Mr. Brugger added, "The company also executed on its strategic priority to create $450 million investment capacity through asset sales and financings in 2016, which positions DiamondRock to be opportunistic headed into 2017."

Operating Results      

Please see "Non-GAAP Financial Measures" attached to this press release for an explanation of the terms "EBITDA," "Adjusted EBITDA," "Hotel Adjusted EBITDA Margin," "FFO" and "Adjusted FFO"and a reconciliation of these measures to net income. Comparable operating results include our 2015 acquisitions for all periods presented and exclude our 2016 dispositions for all periods presented. See "Reconciliation of Comparable Operating Results" attached to this press release for a reconciliation to historical amounts.