EX-99.1 2 investorpresentationupda.htm EX-99.1
INVESTOR PRESENTATION NOVEMBER 2023 TRANQUILITY BAY BEACHFRONT RESORT

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 third quarter 2023 earnings press release dated November 1, 2023. 2

WHY DIAMONDROCK? 1 2 3 4 5 High Quality & Geographically Diverse Hotels Track Record of Driving Internal and External Growth Robust Outlook For Group & Leisure Demand ESG Leadership Strong Liquidity and Flexible Balance Sheet Robust ROI Pipeline and Highly Liquid Portfolio 6 Experienced Management7 3

DIAMONDROCK AT A GLANCE DIVERSIFIED GEOGRAPHY DIVERSIFIED PROPERTIES FINANCIAL SUMMARY Net Debt2 to TTM EBITDA Total Debt1 $1.2B 3.8x Total Debt to Gross Book Value 29% TTM Revenue $1.1B TTM Corporate Adj. EBITDA $282MM Q3 2023 PORTFOLIO 9,724 36 25 ROOMS GEOGRAPHIC MARKETS PROPERTIES 3. 2022 EBITDA, proforma for 2022 & 2023 acquisitions 1. Excludes preferred capital 2. Cash includes corporate cash, excludes preferred capital MARKET % OF 2022 EBITDA3 Atlanta 1.3% Austin 2.5% Boston 10.2% Burlington 2.7% Charleston 3.2% Chicago 14.2% DC 1.1% Denver 3.7% Destin 3.7% Florida Keys 8.4% Fort Lauderdale 7.7% Fort Worth 4.2% Huntington Beach 2.7% Lake Tahoe 1.4% New Orleans 2.0% New York City 6.9% Paradise Valley/Yellowstone 0.9% Phoenix 1.8% Salt Lake City 2.9% San Diego 2.9% San Francisco 0.3% Sausalito 3.9% Sedona 4.5% Sonoma 2.8% Vail 4.1% Total 100.0% 4

24 Hotels 4,312 Keys 57% of Portfolio by Revenue 15 Independent Hotels 100% Unencumbered by Management WELL POSITIONED PORTFOLIO: LEISURE AS A LONG-TERM SECULAR DRIVER LUXURY & LIFESTYLE RESORTS URBAN LIFESTYLE HOTELS SAUSALITO, CA L’AUBERGE DE SEDONA THE LANDING RESORT AND SPA SEDONA, AZ SONOMA, CA HAVANA CABANA KIMPTON SHOREBREAK RESORT BURLINGTON, VT CHARLESTON, SC THE LINDY CHARLESTON HISTORIC DISTRICT CHICAGO, IL THE GWEN, A LUXURY COLLECTION HOTEL SAN FRANCISCO, CAPHOENIX, AZ NEW ORLEANS, LA HOTEL CLIO, A LUXURY COLLECTION HOTELHOTEL CHAMPLAIN BURLINGTON BOSTON, MA DENVER, CO HENDERSON BEACH RESORT LAKE AUSTIN SPA RESORT WESTIN FORT LAUDERDALE BEACH RESORT MARGARITAVILLE BEACH HOUSE KEY WEST TRANQUILITY BAY RESORT MARATHON, FLAUSTIN, TX FORT LAUDERDALE, FL KEY WEST, FL DESTIN, FLSEDONA, AZ LAKE TAHOE, CA HUNTINGTON BEACH, CA 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 CAVALLO POINT ORCHARDS INN THE LODGE AT SONOMA RESORT Notes: Revenue is trailing twelve months as of Q3 2023 PRAY, MT CHICO HOT SPRINGS HOTEL PALOMAR PHOENIX BOURBON ORLEANS HOTELHOTEL EMBLEM THE DAGNY BOSTON 5

COURTYARD MANHATTAN/FIFTH AVENUE COURTYARD MANHATTAN/MIDTOWN EASTHILTON GARDEN TIMES SQUARE CENTRAL 4 Hotels 969 Keys 9% of Portfolio by Revenue 100% Unencumbered by Management WELL POSITIONED PORTFOLIO: GROUP AND URBAN DEMAND RECOVERY 6 Hotels 3,853 Keys 31% of Portfolio by Revenue Strong Convention Markets 2 Hotels 590 Keys 3% of Portfolio by Revenue 100% Unencumbered by Management THE WORTHINGTON SALT LAKE CITY MARRIOTT DOWNTOWN EMBASSY SUITES BETHESDAATLANTA MARRIOTT ALPHARETTA WESTIN WASHINGTON, D.C. CITY CENTER URBAN GROUP HOTELS URBAN LIMITED-SERVICE HOTELS SUBURBAN HOTELS CHICAGO, ILBOSTON, MA BETHESDA, MDATLANTA, GA NEW YORK, NYNEW YORK, NYNEW YORK, NY Notes: Revenue is trailing twelve months as of Q3 2023 6 DENVER, CO COURTYARD DENVER DOWNTOWN SAN DIEGO, CA FORT WORTH, TX SALT LAKE CITY, UT WASHINGTON, DC CHICAGO MARRIOTT MAGNIFICIENT MILEWESTIN BOSTON SEAPORT WESTIN SAN DIEGO BAYVIEW

Q3 2023 PERFORMANCE HIGHLIGHTS Q3 RESULTS KIMPTON HOTEL PALOMAR PHOENIX 2023 Comparable Results Q1 Q2 Q3 RevPAR vs 2022 16.8% 0.6% -1.1% RevPAR vs 2019 13.7% 8.0% 7.6% Total Revenue Up 12% vs 2019 and Flat to 2022 RevPAR Ahead of Expectations Q3 Comparable Results: • Revenue: $277.1MM, +0.1% vs 2022 and +12.0% vs 2019 • RevPAR: $210.03, -1.1% vs 2022 and +7.6% vs 2019 • TRevPAR: $312.35, -0.1% vs 2022 and +11.6% vs 2019 • Sequential year-over-year improvement in resorts from Q2 • Departmental Operating Expenses increased 1.4% despite disruption, flat revenues, and 140bps higher occupancy • Hotel Adj. EBITDA: $81.1MM, -6.6% vs 2022 and +8.9% vs 2019 • $2.0MM from The Dagny conversion disruption • $2.8MM due to Chicago property tax relief recognized in prior year • $1.9MM due to insurance policy renewal (April 2023) – Q3 reflects full quarter impact of higher costs • Aggressive asset management initiatives resulted in: • Other Income increased by 8.5% • Comparable F&B Profit Margins increased 50bps vs 2022 despite food inflation • Beverage Margins increased 140bps 7

IMPROVING LEISURE DEMAND Resort Revenue Still 25%+ above 2019, Q3 Resorts Adj. Hotel EBITDA Up 23% vs 2019 Resort RevPAR vs 2022 Resort RevPAR vs 2019 THE LANDING RESORT & SPA TRANQUILITY BAY RESORT THE HYTHE, A LUXURY COLLECTION HOTEL Q3 TRevPAR vs 2022 +15.2% +10.4% +9.3% 500 bps improvement from prior quarter 8 4.4 Days Per Week 2019 Days Per Week in Office of an Average US Office Worker 3.4 Days Per Week Post-Pandemic Days Per Week in Office of an Average US Office Worker 2.7B Incremental Days of Locational Flexibility Resort RevPAR Finding New Baseline Tremendous Upside Opportunity with Locational Flexibility Source: CBRE Hotels Research 94% 87% 92% 130% 131% 124% 0% 20% 40% 60% 80% 100% 120% 140% Q1 Q2 Q3 Q1 Q2 Q3

STRONG GROUP PACE – FAVORABLE FOOTPRINT 2023 Comparable Group Revenue Expected to Exceed 2019 (Rates Up, but Room Nights ~10% below 2019) 2024 Group Revenue Pace Up 23% vs 2022 DRH’s Geographic Footprint Well-Positioned for Group Recovery MARKET % of 2022A EBITDA 2019 2022 2023E 2024E 2025E CHICAGO 14% 1,142 1,153 1,047 1,184 1,084 BOSTON 10% 349 330 426 389 366 SAN DIEGO 3% 732 660 811 906 831 PHOENIX 2% 291 305 368 332 290 WASHINGTON, DC 1% 387 400 297 450 364 TOTALS 30% 2,901 2,848 2,948 3,262 2,935 WESTIN WASHINGTON, D.C. CITY CENTER CHICAGO MARRIOTT WESTIN BOSTON SEAPORT DISTRICT 2024 Group Revenue Pace as of Q3 vs 2022 +59.1% +43.9% +17.8% Strong Citywide Convention Room Nights (Units’000) 600 700 800 2019 2022 2023 G ro u p R o o m N ig h ts ( ‘0 0 0 ) A return to 2019 level group room nights represents $34MM incremental room revenue and additional out of room spend Source: CBRE Hotels Research, Center for Exhibition Industry Research’s Index 0% 20% 40% 60% 80% 100% 120% 2019 2022 2023 2024 Convention Volume Forecast Indexed to 2019 Group Demand Recovering Fast in 2023, with 2024 US Convention Volume to Exceed 2019 Significant Upside Potential in Full Year Group Revenue 9

MODEST GAINS IN BUSINESS TRANSIENT Q3 Business Transient Demand Up 5.9% vs 2022 - Modest Gains, Though Still Below Prior Peak Corporate Transient Expected to Continue to Improve, Albeit Slowly 10 • Working Closely with Operators • Channel Shift • Occupancy vs Rate Trade Offs Business Travel (GDS) Share of Total Demand vs Percent of 2019 Levels Strong Focus on Maximizing Business Transient Revenue Strategies THE GWEN, A LUXURY COLLECTION HOTEL Source: CBRE Hotels Research, Kalibri Labs

DRIVERS OF U.S. LEISURE HOTEL GROWTH – DEMOGRAPHIC SHIFTS 11 MORE PEOPLE MORE FLEXIBILITY MORE EXPERIENTIAL EXTRAORDINARY LEISURE DEMAND Per CBRE, population growth in two of the heaviest traveling segments (Millennials & Baby Boomers) with more flexibility, more money, and desire for more experiences should lead to more leisure travel 60.8 62.3 71.5 90.4 Family Formation/Millenials (25-39) Active Retirement/Baby Boomers (55-79) 2010 2030 U.S. Population by Age Segment Over Time (in Millions) Peak Travel Years = Leisure Set vs Urban Set vs Overall US RevPAR Indexed to 1987 Source: CBRE Hotel Research, CBRE Econometric Advisors Leisure Set Urban Set Total US Lodging Market

SMART MARKET ALLOCATION 70% 75% 80% 85% 90% 95% 100% 105% 110% DRH APLE HST XHR PK RLJ SHO PEB 2023E 2024E Note: Consensus EBITDA estimates are per Factset database as of 10/30/23, average excludes DRH INDEX YEAR 2019 2023 Average 86% 2024 Average 87% EBITDA CONSENSUS ESTIMATES INDEXED TO 2019 12

CONSISTENT OUTPERFORMANCE AGAINST PEERS Q3 2023 HOTEL EBITDA GROWTH VS PEERS (vs. Q3 2019) Average1: -5% Source: Company Filings 1. Average excludes DRH 2. APLE no longer providing 2019 comparable results Q3 2023 PEER PERFORMANCE (vs. Q3 2019) DRH AVG1 PEB XHR HST APLE2 RLJ SHO PK ADR Growth +17% 13% 14% 16% 16% 6% 14% 11% Occupancy Growth -7% -12% -13% -16% -10% -8% -14% -10% RevPAR Growth +9% 1% 0% -3% 4% 7% -2% -2% 0% Adj. FFO per Share Growth -4% -15% -21% -45% 17% 0% -13% -21% -25% 13 9% 6% -1% -5% -10% -11% -12% DRH HST XHR PK SHO RLJ PEB

HIGH QUALITY, LIQUID PORTFOLIO BRAND MANAGEMENT EXPOSURE COMPANY PERCENT OF MANAGEMENT CONTRACTS XHR 84% HST 87% PK 90% SHO 73% PEER AVERAGE 84% PEB 24% DRH 6% ■ Terminable at will ■ Enhanced asset liquidity ■ Superior cost controls ■ 50-100bp cap rate improvement BENEFITS OF LOW EXPOSURE ■ Strong residual value ■ More financial flexibility ■ Reduced operating leverage ■ Increased earnings transparency Source: Latest company filings 1. Includes restaurant ground lease at Southernmost Beach Resort 2. Excludes room count of Parc 55 San Francisco and Hilton San Francisco Union Square 3. Excludes The Worthington garage ground lease and Hotel Clio patio ground lease as they are not critical to operations and Kimpton Palomar Phoenix lease due to perpetual purchase rights 4. Excludes JW Marriott New Orleans airspace lease 5. Excludes Hyatt Regency Santa Clara due to purchase rights BENEFITS OF LOW EXPOSURE GROUND LEASE EXPOSURE COMPANY PERCENT OF ROOMS TENOR OF THE FIVE SHORTEST LEASES NO. OF LEASED HOTELS PEB1 41% 27 Years 18 Hotels HST 30% 19 Years 19 Hotels PK2 23% 16 Years 15 Hotels PEER AVERAGE 31% 23 Years 17 Hotels DRH3 20% 58 Years 6 Hotels SHO4 15% 48 Years 1 Hotels XHR5 8% 72 Years 2 Hotels UNENCUMBERED VS. ENCUMBERED 15% 20% TO VALUATION PREMIUM 14

NO MATERIAL NEAR-TERM MATURITIES FLEXIBLE BALANCE SHEET Note: Mortgages reflect balance at scheduled maturity, $500MM+ Total Available Liquidity 29% Total Debt to Gross Book Value 3.8x Net Debt to TTM EBITDA Note: As of September 30, 2023, excludes cash held at hotels DEBT MATURITY SCHEDULE ($MM) SIGNIFICANT LIQUIDITY AND DRY POWDER AVAILABLE $0 $73 $291 2023 2024 2025 LOW LEVERAGE VS PEERS Low Leverage 8.3 7.7 7.6 6.2 5.5 5.4 5.1 4.9 4.2 3.8 2.9 2.3 PEB HT INN RLJ PK CLDT RHP XHR DRH APLE SHO HST Source: Baird Hotel Comp Sheet (11/6/23), Net Debt + Preferred / EBITDA 2022 High Leverage NET DEBT + PREFERRED TO EBITDA Note: As of September 30, 2023, cash excludes cash held at hotels, debt excludes preferred capital 15

DEMONSTRATED TRACK RECORD OF DRIVING GROWTH 16 27.4% 42.8% 2 $500MM+ Invested in ROI Projects Over the Last 5 Years Q3’23 RevPAR Increase vs 2019 for Last 4 Repositioned Hotels1 Q3’23 Hotel Adj. EBITDA Increase vs 2019 for Last 4 Repositioned Hotels1 We continue to drive the identification and execution of additional value-add ROI projects Additional Comprehensive Repositionings Underway to be Completed in 2024 1. Excludes The Dagny repositioning which was just completed in August 2023

March 2022 July 2021 November 2021 JW MARRIOTT CHERRY CREEKSONOMA RENAISSANCE VAIL MARRIOTT November 2021 SHERATON KEY WEST COMPLETED REPOSITIONINGS HILTON BOSTON August 2023 17

ROI CASE STUDIES - THE DAGNY • Completion: August 1, 2023 • Total Cost: $32MM • Increase Cost over Hilton Renovation: $5MM • Incremental NOI for Independent hotel: $1MM • Exit value increase: $14MM-30MM (50-100 bps on cap rate) +36% +83% REVPAR EBITDA ($MM) $9.2 $16.8 2023F 2027F $211 $287 2023F 2027F Conversion from Hilton Boston to The Dagny Conversion from Hilton brand to an independent lifestyle hotel with renovated rooms and bathrooms, a state-of-the-art gym, improved meeting spaces, and a new sense of arrival 18

ROI CASE STUDIES – THE LODGE AT SONOMA ADR +49%+27% +24% REVPAR EBITDA ($MM) Conversion from Sonoma Renaissance to The Lodge at Sonoma, Autograph Collection Cottage enhancements, chef restaurant, guest room showers, and landscaping enhancements $7.2 $8.9 TTM Q3'19 TTM Q3'23 $223 $283 TTM Q3'19 TTM Q3'23 $306 $456 TTM Q3'19 TTM Q3'23 TREVPAR $377 $477 TTM Q3'19 TTM Q3'23 +27% 19

ROI CASE STUDIES – THE HYTHE VAIL, A LUXURY COLLECTION RESORT +51%+39% +70% Conversion from Vail Marriott to The Hythe, a Luxury Collection Resort Multi-year comprehensive renovation, new spa, new sense of arrival and F&B experiences ADR REVPAR EBITDA ($MM) $10.0 $17.1 TTM Q3'19 TTM Q3'23 $181 $251 TTM Q3'19 TTM Q3'23 $296 $446 TTM Q3'19 TTM Q3'23 TREVPAR $275 $374 TTM Q3'19 TTM Q3'23 +36% 20

ROI CASE STUDIES – MARGARITAVILLE BEACH HOUSE +56%+60% +92% ADR REVPAR EBITDA ($MM) $6.0 $11.5 TTM Q3'19 TTM Q3'23 Conversion from Sheraton Key West to Margaritaville Beach House, Key West Expanded bar, renovated rooms, added pool entertainment, and new sense of arrival $203 $325 TTM Q3'19 TTM Q3'23 $256 $398 TTM Q3'19 TTM Q3'23 TREVPAR $249 $442 TTM Q3'19 TTM Q3'23 +78% 21

2023 ROI PROJECTS IN PROGRESS Conversion to Curio brand and a new chef-driven restaurant • Est. Completion: Summer 2024 • Total Cost: $8.6MM • Stabilized Yield on Cost: 10% • Adds an additional lifestyle hotel to the portfolio • Expected to enhance exit value Repositioning and rebranding the hotel to a lifestyle boutique • Est. Completion: Late 2024 • Total Cost: $12.7MM • Stabilized Yield on Cost: 10% Hilton Burlington Lake Champlain Bourbon Orleans Hotel 22

COURTYARD DENVER DOWNTOWNLAKE AUSTIN SPA RESORT ORCHARDS INN POTENTIAL LONGER TERM CAPITAL PROJECTS Repositioning to Integrate with L’Auberge de Sedona Exploring Adding More Waterfront Guest Rooms Courtyard Denver Downtown Franchise Expiration in 2027 Potential Upbranding and Expansion 23

THE LANDING WESTIN BOSTON SEAPORT HENDERSON PARK INN POTENTIAL LONGER TERM CAPITAL PROJECTS The Westin Boston Seaport District Franchise Expiration in 2026 Value Creation Opportunity Currently 37 Rooms Entitled for 135 Ocean- Front Units Exploring Adding 20% More Guest Rooms 24

CAVALLO POINTTRANQUILTY BAY CHICO HOT SPRINGS POTENTIAL LONGER TERM CAPITAL PROJECTS Exploring Installation of a New Marina Exploring Adding New Cabins Exploring Spa Expansion 25

RECENT ACQUISITIONS OUTPERFORMING UNDERWRITING HENDERSON PARK INN (DESTIN, FL) TRANQUILITY BAY (MARATHON, FL)KIMPTON FORT LAUDERDALE BEACH (FT LAUDERDALE, FL)LAKE AUSTIN SPA RESORT (AUSTIN, TX) 7 HOTELS ACQUIRED IN THE PAST TWO YEARS $440MM+ CAPITAL DEPLOYED 11.6X 2022 EBITDA MULTIPLE OVER ACQUISITION PRICE EXCL. CHICO HOT SPRINGS RESORT CHICO HOT SPRINGS RESORT (PARADISE VALLEY, MT) BOURBON ORLEANS HOTEL (NEW ORLEANS, LA) HENDERSON BEACH RESORT (DESTIN, FL) 26

ACQUIRED CHICO HOT SPRINGS RESORT ACQUISITION DATE 8/1/23 PURCHASE PRICE $33.0 MILLION LOCATION Paradise Valley/Yellowstone, MT NUMBER OF ROOMS 117 NUMBER OF ACRES 748 KEY DEAL HIGHLIGHTS ■ Acquisition of an authentic western-style, geothermal hot spring resort located in Paradise Valley, a major river valley of the Yellowstone River renown for world-class fly fishing ■ Convenient to famous Roosevelt Arch, the popular and only year- round vehicle entrance to Yellowstone National Park ■ #1 in TripAdvisor, Recognized by Conde Nast and T&L ■ Fee simple, unencumbered by brand or management ■ Pricing: $27MM ($230k/key, 8.4% NOI on 2022A) for 153-acre resort and $6MM ($9,600/acre) for the 595-acre ranch ■ Stabilization by 2026 at 10.5% NOI yield on total investment UPSIDE OPPORTUNITIES ■ Owner-operated for over 120 years ■ Significant incremental revenue and profit in resort • 2023/24 Room Rates largely unchanged from 2019 • Implement revenue management • Streamline and optimize room types • Broaden distribution channels of resort • Enhance and improve technology & systems ■ ROI Opportunities • Add additional cabins and experiential room types • Introduction of a resort fee • Internalize and expand spa operations • Monetize excess land to reduce investment basis • Build workforce housing units • Events & Tour partnership with adjacent Yellowstone Film Ranch www.yellowstonefilmranch.com ■ ESG Benefits & Opportunities • Heated by renewable geothermal energy • Opportunities to install eco-lodging, wind and solar ABOUT CHICO HOT SPRINGS RESORT This summary information sheet contains certain “forward-looking statements” relating to, among other things, hotel EBITDA and hotel net operating income after capital reserves. The forward-looking statements made are based on our beliefs, assumptions and expectations of future performance, taking into account all information currently available to us. Actual results could differ materially from the forward-looking statements made on this summary information sheet. When we use the words “projected,” “expected,” “planned” and “estimated” or other similar expressions, we are identifying forward-looking statements. The forward-looking statements on this summary information sheet are subject to the safe harbor of the Private Securities Litigation Reform Act of 1995. All information on this sheet is as of August 2 2023. We undertake no duty to update the information to conform to actual results or changes in our expectations. This fact sheet contains statistics and other data that has been obtained from information available from public sources. For additional information, please visit our website at www.drhc.com. ■ The four-season, full-service resort offers miles of trails for hiking, mountain biking, horseback riding and disc golf as well as expeditions for fly fishing, rock climbing, dog sledding, snowshoeing and cross-country skiing ■ One of the region’s best restaurants, the historic Dining Room is led by a James Beard award semi-finalist and is consistently recognized with Wine Spectator’s Best of Award of Excellence. 27

ESG ACCOMPLISHMENTS – GRESB RESULTS GRESB ANNUAL RESULTS VS PEER GROUP 2017 2018 2019 2020 2021 2022 2023 DRH GRESB Score 53 75 81 84 86 82 85 Peer Score Average 57 58 69 69 72 65 77 Index to Peer Score Average 93% 129% 117% 122% 119% 126% 110% 2023 DRH GRESB SCORE & RECOGNITION 4th Consecutive Year Recognized as Sector Leader GRESB REAL ESTATE ASSESSMENT  Ranked 1st GRESB Score among U.S. Listed Hotels  Ranked 2nd GRESB Score among Listed Hotels  Ranked 18th GRESB Score among U.S. Listed Companies (Top 15%) 28 GRESB PUBLIC DISCLOSURE  Ranked 1st within the U.S. Hotels with a score of “A” compared to the Peer Group Average of “B” and the GRESB Global Average of “B”

ESG METRICS 13% 18% 27%ENERGY REDUCTION Reduction in Energy Intensity (kWh per ft2) Since 2019 WATER REDUCTION Reduction in Emissions Intensity (kgCO2e per ft2) Since 2019 Increase in % Renewables Since 2019 Common Practices at Properties • Energy Star Portfolio Manager Benchmarking • Preventive Maintenance Plans 18% 34% Reduction in Water Intensity Gallons per ft2 Since 2019 Increase in Water Intensity Gallons per Occupied Room Since 2019 Due to reduced occupancy rates during pandemic and post-pandemic periods, along with enhanced cleaning and sanitization procedures to minimize the risk of Covid-19 transmission WASTE REDUCTION 27% 15 Reduction in Waste Intensity Pounds per occupied room Since 2019 Increase in Waste Diversion Rate Since 2019 • LED Light Bulbs • Digital Thermostats in Guest Rooms • Occupancy Sensors and Other Energy Conservation Measures Common Practices at Properties • Low Flow Showerheads & Faucets • Low or Dual Flow Toilets • Water Efficiency Programs • Native or Drought Tolerant Landscaping • Smart Irrigation Systems Common Practices at Properties • Compost Food Waste • Elimination/Reduction of Single Use Plastics • Donation of Excess Food to Community Kitchens • Food Waste Measurement • Recent Waste Stream Audit or Waste Assessment 29 percentage points

EXTENSIVE MANAGEMENT AND HOSPITALITY EXPERIENCE MARK W. BRUGGER CO-FOUNDER PRESIDENT, CEO AND DIRECTOR • Co-founded DRH in 2004 and successfully led its IPO in 2005 • Named Forbes’ list of America’s Most Powerful CEOs 40 and Under and a finalist for the E&Y Entrepreneur of the Year Award • Extensive background in real estate, capital markets, and structured finance JEFFREY J. DONNELLY EXECUTIVE VP AND CFO JUSTIN L. LEONARD EXECUTIVE VP AND COO WILLIAM J. TENNIS EXECUTIVE VP, GENERAL COUNSEL AND CORPORATE SECRETARY TROY G. FURBAY EXECUTIVE VP AND CIO BRIONY R. QUINN SENIOR VP AND TREASURER • Joined as CFO in 2019 • Previously Managing Director at Wells Fargo Securities where he co- founded Real Estate & Lodging Equity Research • Served as AVP at AEW Capital Management, LP overseeing asset management and capital market transactions for diversified commercial real estate portfolio • Joined as COO in 2022 • Previously was at Walton Street Capital, LLC for 23 years, most recently as Senior Principal overseeing hotel investments. During his tenure, he oversaw hotel asset management which included 60 branded and independent hotels totaling over 20,000 rooms • Joined as General Counsel in 2010 • Previously worked for Marriott for 17 years initially as Assistant General Counsel and then as Senior Vice President for the Global Asset Management Group • Prior to joining Marriott, worked as an Associate at a New York law firm • Joined as CIO in 2014 • Previously was Chief Investment Officer at Loews Hotels & Resorts • Prior to that, served in senior investment roles with Kimpton Hotels and MeriStar Hospitality Corporation • Joined DRH in 2007 • Promoted to Chief Accounting Officer in 2014 and Treasurer in 2018 • Prior to DRH, was VP of Finance and Accounting for MeriStar Hospitality Corporation 30