DiamondRock Hospitality : June 2024 Investor Update

INVESTOR

PRESENTATION

JUNE 2024

CAVALLO POINT

FORWARD LOOKING STATEMENTS & USE OF NON-GAAP FINANCIAL MEASURES

FORWARD LOOKING STATEMENTS

Certain statements made during this presentation are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements generally include the words "believe," "expect," "anticipate," "plan," "estimate," "project," "will," "intend" or other similar expressions. Forward-looking statements include, without limitation, statements regarding industry outlook, results of operations, cash flows, business strategies, growth and value opportunities, capital and other expenditures, financing plans, expense reduction initiatives and projected dispositions.

Factors that could cause actual results to materially differ from those contained in the forward-looking statements include, without limitation, national and local economic and business conditions, including the impact of COVID-19 on occupancy rates at DiamondRock Hospitality Company's (the "Company") hotels and the demand for hotel products and services, and those risks and uncertainties discussed in the most recent Annual Report on Form 10-K, which the Company has filed with the Securities and Exchange Commission, and in our other public filings which you should carefully review. The forward-looking statements made are based on our beliefs, assumptions and expectations of future performance, taking into account all information currently available to the Company. Actual results could differ materially from the forward- looking statements made in this presentation. The forward-looking statements made in this presentation are subject to the safe harbor of the Private Securities Litigation Reform Act of 1995.

Any forward-looking statement speaks only as of the date on which it is made. Although the Company believes the expectations reflect ed in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material.

All information in this presentation is as of the date of this presentation, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.

This presentation contains statistics and other data that has been obtained or compiled from information made available by third- party service providers and believed to be reliable, but the accuracy and completeness of the information is not assured. The Company has not independently verified any such information.

USE OF NON-GAAP FINANCIAL MEASURES

We use the following non-GAAP financial measures that we believe are useful to investors as key measures of our operating performance: EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted FFO. These measures should not be considered in isolation or as a substitute for measures of performance in accordance with U.S. GAAP. EBITDA, EBITDAre, Adjusted EBITDA, Hotel EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted FFO, as calculated by us, may not be comparable to other companies that do not define such terms exactly as the Company.

A detailed explanation of these non-GAAP financial measures and the reconciliation of such measures to the most directly comparable financial measures prepared in accordance with U.S. GAAP can be found in the Company's first quarter 2024 earnings press release dated May 2, 2024.

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WHY DIAMONDROCK

1. HIGH PERFORMING, FOCUSED PORTFOLIO
2. UNENCUMBERED AND LIQUID PORTFOLIO
3. STREAMLINED & EXPERIENCED MANAGEMENT
4. STRONG SECULAR OUTLOOK FOR GROUP AND LEISURE
5. ROBUST GROWTH FROM ROI PIPELINE
6. STRONG LIQUIDITY AND FLEXIBLE BALANCE SHEET
7. ESG LEADERSHIP

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DIAMONDROCK AT A GLANCE

PORTFOLIO
9,757	ROOMS
36	PROPERTIES
25	MARKETSGEOGRAPHIC

DIVERSIFIED PROPERTIES

FINANCIAL SUMMARY

	Q1 2024
TTM Revenue	$1.1B
TTM Corporate Adj. EBITDA	$271MM
Total Debt1	$1.2B
Net Debt2 to TTM EBITDA	3.9x
Total Debt to Gross Book Value	29%

1. Excludes preferred capital
2. Cash includes corporate cash, excludes preferred capital

DIVERSIFIED GEOGRAPHY

MARKET	% OF 2023 EBITDA
	Chicago	12.5%
	Boston	10.8%
	New York City	8.3%
	Florida Keys	7.6%
	Vail	5.6%
	Fort Lauderdale	5.0%
	Fort Worth	4.8%
	Sedona	3.8%
	Denver	3.7%
	Salt Lake City	3.7%
	Destin	3.7%
	Sausalito	3.7%
	Charleston	3.4%
	San Diego	3.4%
	Sonoma	2.6%
	Burlington	2.6%
	Huntington Beach	2.5%
	New Orleans	2.4%
	Phoenix	2.3%
	DC	2.1%
	Atlanta	1.8%
	Austin	1.5%
	Lake Tahoe	1.2%
	Montana	0.8%
	San Francisco	0.1%
	Total	100.0%

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WELL-POSITIONED PORTFOLIO: LEISURE AS A LONG-TERM SECULAR DRIVER

LUXURY & LIFESTYLE RESORTS

AUSTIN, TX

MARATHON, FL

FORT LAUDERDALE, FL

PRAY, MT

24 Hotels 4,345 Keys

56% of Portfolio

by Revenue

13 Independent Hotels

100%

Unencumbered by Management

LAKE AUSTIN SPA RESORT		TRANQUILITY BAY RESORT		WESTIN FORT LAUDERDALE BEACH RESORT	CHICO HOT SPRINGS
SEDONA, AZ		DESTIN, FL	LAKE TAHOE, CA	HUNTINGTON BEACH, CA

L'AUBERGE DE SEDONA		HENDERSON BEACH RESORT		THE LANDING RESORT AND SPA		KIMPTON SHOREBREAK RESORT
VAIL, CO		DESTIN, FL	FORT LAUDERDALE, FL		KEY WEST, FL

THE HYTHE, A LUXURY COLLECTION HOTEL	HENDERSON PARK INN	KIMPTON SHOREBREAK FORT LAUDERDALE BEACH RESORT		HAVANA CABANA
	KEY WEST, FL
SAUSALITO, CA	SEDONA, AZ		SONOMA, CA

CAVALLO POINT

MARGARITAVILLE BEACH HOUSE KEY WEST

ORCHARDS INN

THE LODGE AT SONOMA RESORT

URBAN LIFESTYLE HOTELS

BURLINGTON, VT

CHARLESTON, SC

CHICAGO, IL

DENVER, CO

HOTEL CHAMPLAIN BURLINGTON		THE LINDY CHARLESTON HISTORIC DISTRICT		THE GWEN, A LUXURY COLLECTION HOTEL		HOTEL CLIO, A LUXURY COLLECTION HOTEL
PHOENIX, AZ		SAN FRANCISCO, CA		NEW ORLEANS, LA		BOSTON, MA
HOTEL PALOMAR PHOENIX	HOTEL EMBLEM		BOURBON ORLEANS HOTEL		THE DAGNY BOSTON	5

Notes: Revenue as of FY 2023

WELL-POSITIONED PORTFOLIO: GROUP AND URBAN DEMAND RECOVERY

URBAN GROUP HOTELS

6 Hotels 3,853 Keys

32% of Portfolio by Revenue

Strong Convention Markets

BOSTON, MA

CHICAGO, IL

SAN DIEGO, CA

WESTIN BOSTON SEAPORT		CHICAGO MARRIOTT MAGNIFICIENT MILE		WESTIN SAN DIEGO BAYVIEW
FORT WORTH, TX	SALT LAKE CITY, UT	WASHINGTON, DC

THE WORTHINGTON

SALT LAKE CITY MARRIOTT DOWNTOWN

WESTIN WASHINGTON, D.C. CITY CENTER

URBAN SELECT-SERVICE HOTELS

4 Hotels 969 Keys

9% of Portfolio by Revenue

100% Unencumbered by Management

SUBURBAN HOTELS

2 Hotels

590 Keys

3% of Portfolio by Revenue

100% Unencumbered by Management

NEW YORK, NY

NEW YORK, NY

NEW YORK, NY

HILTON GARDEN TIMES SQUARE CENTRAL

COURTYARD MANHATTAN/FIFTH AVENUE

COURTYARD MANHATTAN/MIDTOWN EAST

DENVER, CO

COURTYARD DENVER DOWNTOWN

ATLANTA, GA

BETHESDA, MD

ATLANTA MARRIOTT ALPHARETTA

EMBASSY SUITES BETHESDA

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Notes: Revenue as of FY 2023

EXPERIENCED MANAGEMENT TEAM

DiamondRock announced leadership changes in April to expedite decision-making and increase G&A efficiency

BRIONY R. QUINN

CFO

• Joined DRH in 2007 as Assistant Controller and has held the positions of Corporate Controller, Chief Accounting Officer, and SVP and Treasurer
• Previously held senior positions at Meristar Hospitality Corporation and a number of audit and consulting firms

JEFFREY J. DONNELLY

CEO AND DIRECTOR

• Joined DRH in 2019 as EVP & CFO
• Previously, was MD of Equity Research at Wells Fargo Securities and co-founded Wells Fargo's Real Estate & Lodging Equity Research Platform, with direct responsibility of $45B+ of equity transactions over a 22-year career
• Founder and Trustee of The Rubinstein- Taybi Syndrome Children's Foundation

JUSTIN LEONARD

PRESIDENT AND COO

• Joined DRH in 2022 as EVP & COO
• Previously held various positions at Walton Street Capital for 23 years, most recently as Senior Principal with oversight of the firm's hotel investments
• Involved in $3B+ in hospitality transactions and directed asset management of 60 branded and independent hotels

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MOST LIQUID PORTFOLIO AMONGST PEERS

% OF BRAND MANAGED PROPERTIES

100%

80%

60%

40%

20%

0%

DRH	PEB	RLJ 1 SHO		HST 2 PK 3 XHR
		Non-Brand Managed		Brand Managed

Notes

Source: Company 2023 Annual Reports

1RLJ reflects only Hilton brand managed hotels, as other brand managed properties were not disclosed 2HST reflects % of rooms that are brand-managed since properties are not disclosed

3PK reflects an estimate as numbers were not disclosed

GROUND LEASE EXPOSURE

	% OF	TENOR OF THE 5	NO. OF LEASED
COMPANY	SHORTEST
ROOMS	HOTELS
	LEASES
PEB4	44%	26 Years	18 Hotels
HST	30%	18 Years	19 Hotels
PK	23%	21 Years	14 Hotels
PEER AVERAGE	23%	33 Years	11 Hotels
DRH5	20%	58 Years	6 Hotels
SHO6	18%	48 Years	1 Hotels
RLJ	17%	17 Years	13 Hotels
XHR7	7%	71 Years	2 Hotels

4Includes restaurant ground lease at Southernmost Beach Resort

5Excludes the Kimpton Palomar Phoenix lease due to perpetual purchase rights and Hotel Clio patio ground lease which is not critical to operations

6Excludes JW Marriott New Orleans airspace lease

7Excludes Hyatt Regency Santa Clara due to purchase rights

BENEFITS OF SHORT-TERM AGREEMENTS

• Terminable at Will
• Asset Liquidity Enhanced
• Superior Cost Controls
• 50 to 100 bps Better Exit Cap Rate
• Enhanced Flexibility to Optimize Performance

VALUATION PREMIUM:15% UNENCUMBERED VS. 20%TO ENCUMBERED HOTELS

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Q1 COMPARABLE RESULTS

TOTAL REVENUE TREVPAR REVPAR ADR OCCUPANCY

PORTFOLIO

$256.4MM	$288.92	$184.23	$269.53	68.4%
+3.8%	+2.4%	(0.4%)	(2.5%)	+1.5% PTS
vs 2023	vs 2023	vs 2023	vs 2023	vs 2023

URBAN	$210.70	$142.37	$210.09	67.8%
	+5.6%	+2.0%	(1.3%)	+2.2% PTS
	vs 2023	vs 2023	vs 2023	vs 2023
RESORTS	$522.71	$309.33	$441.28	70.1%
(1.9%)	(4.0%)	(2.8%)	(0.9% PTS)
	vs 2023	vs 2023	vs 2023	vs 2023

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2024 UPDATED OUTLOOK

2024 GUIDANCE

METRIC	LOW END	HIGH END
Comparable RevPAR Growth	2%	4%
Adjusted EBITDA	$270MM	$290MM
Adjusted FFO	$194MM	$214MM
Adjusted FFO per Share	$0.91 per Share	$1.00 per Share

UPDATED ASSUMPTIONS

•	Corporate Expenses:	$29.5MM - $30.5MM1
•	Interest Expense:	$65.2MM - $66.2MM
•	Income Tax Expense:	$0 - $1.0MM
•	Available Rooms:	3,571,062 available

1Excludes expected executive transition costs which will be excluded from Adjusted EBITDA and Adjusted FFO

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