DiamondRock Hospitality Company Reports Fourth Quarter And Full Year 2012 Results And Increases Quarterly Dividend

  DiamondRock Hospitality Company Reports Fourth Quarter And Full Year 2012
                   Results And Increases Quarterly Dividend

PR Newswire

BETHESDA, Md., Feb. 28, 2013

BETHESDA, Md., Feb. 28, 2013 /PRNewswire/ -- DiamondRock Hospitality Company
(the "Company") (NYSE: DRH) today announced results of operations for its
fourth fiscal quarter and full year ended December 31, 2012. The Company is a
lodging-focused real estate investment trust that owns a portfolio of 27
premium hotels in the United States. The Company also announced a 6% increase
to its quarterly dividend commencing with the first quarter 2013.

(Logo: http://photos.prnewswire.com/prnh/20040708/DCTH028)

2012 Transactions

  oHotel Acquisitions: The Company successfully completed the acquisition of
    five hotels for approximately $525 million during 2012.
  oHotel Dispositions: The Company sold four non-core hotels during 2012 for
    total proceeds of over $300 million.
  oEquity Raises: The Company raised approximately $275 million through
    offerings of its common stock in July 2012.
  oCredit Facility: The Company amended and restated its $200 million senior
    unsecured revolving credit facility to lower its borrowing rate, increase
    its financial flexibility and extend the term for one year.
  oHotel Financings: The Company closed on a $170 million loan secured by the
    Lexington Hotel New York and a $74 million loan secured by the Westin
    Washington D.C. City Center during 2012.
  oDividends: The Company declared four quarterly dividends totaling $0.32
    per share during 2012 and returned approximately $56 million to
    shareholders.

2012 Operating Results

  oPro Forma Revenue: The Company's Pro Forma Revenue was $802.4 million, an
    increase of 7.2% from the comparable period in 2011.
  oPro Forma RevPAR: The Company's Pro Forma RevPAR was $134.36, an increase
    of 5.3% from the comparable period in 2011.
  oPro Forma Hotel Adjusted EBITDA Margin: The Company's Pro Forma Hotel
    Adjusted EBITDA margin was 27.18%, an increase of 87 basis points from the
    comparable period in 2011.
  oAdjusted EBITDA: The Company's Adjusted EBITDA was $189.7 million, an
    increase of 17.0% over the comparable period in 2011.
  oAdjusted FFO: The Company's Adjusted FFO was $140.2 million and Adjusted
    FFO per diluted share was $0.78.

Fourth Quarter 2012 Highlights

  oPro Forma Revenue: The Company's Pro Forma Revenue was $267.8 million, an
    increase of 6.6% from the comparable period in 2011.
  oPro Forma RevPAR: The Company's Pro Forma RevPAR was $138.24, an increase
    of 3.9% from the comparable period in 2011.
  oPro Forma Hotel Adjusted EBITDA Margin: The Company's Pro Forma Hotel
    Adjusted EBITDA margin was 28.90%, an increase of 105 basis points from
    the comparable period in 2011.
  oAdjusted EBITDA: The Company's Adjusted EBITDA was $72.3 million.
  oAdjusted FFO: The Company's Adjusted FFO was $56.5 million and Adjusted
    FFO per diluted share was $0.29.
  oDividends: The Company declared a quarterly dividend of $0.08 per share
    during the fourth quarter.

Mark W. Brugger, President and Chief Executive Officer of DiamondRock
Hospitality Company, stated, "Our fourth quarter operating results were above
our expectations, and we are pleased with the continued repositioning of our
portfolio in 2012, including our entry into San Francisco with the accretive
acquisition of the Hotel Rex. We also continued to strengthen our balance
sheet through the amendment of our credit facility and by entering into
attractive secured financing. We enter 2013 with attractive industry
fundamentals, a strong balance sheet and numerous upside opportunities through
our repositioning projects. We are also pleased to increase our quarterly
dividend for 2013."

Operating Results

Please see "Certain Definitions" and "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." The
discussions of "Pro Forma" operating results assume all of the Company's 27
hotels were owned since January 1, 2011.

For the full year 2012, the Company reported the following:

                                Full Year 2012  Full Year 2011 Change
Pro Forma ADR                   $175.43         $168.61        4.0%
Pro Forma Occupancy             76.6%           75.7%          0.9 percentage
                                                               points
Pro Forma RevPAR                $134.36         $127.61        5.3%
Pro Forma Rooms Revenue         $568.8 million  $531.6 million 7.0%
Pro Forma Revenue               $802.4 million  $748.6 million 7.2%
Pro Forma Hotel Adjusted EBITDA 27.18%          26.31%         87 basis points
Margins
Adjusted EBITDA                 $189.7 million  $162.1 million 17.0%
Adjusted FFO                    $140.2 million  $103.6 million $36.6 million
Adjusted FFO per diluted share  $0.78           $0.62          $0.16
Net Loss                        ($16.6 million) ($7.7 million) ($8.9 million)
Loss per diluted share          ($0.09)         ($0.05)        ($0.04)
Diluted Weighted Average Shares 180.8 million   166.7 million

For the fourth quarter beginning September 8, 2012 and ending December 31,
2012, the Company reported the following:

                           Fiscal Q4 2012 Fiscal Q4 2011 Change
Pro Forma ADR              $185.02        $178.55        3.6%
Pro Forma Occupancy        74.7%          74.5%          0.2 percentage points
Pro Forma RevPAR           $138.24        $133.03        3.9%
Pro Forma Rooms Revenue    $189.2 million $178.2 million 6.2%
Pro Forma Revenue          $267.8 million $251.4 million 6.6%
Pro Forma Hotel Adjusted   28.90%         27.85%         105 basis points
EBITDA Margins
Adjusted EBITDA            $72.3 million  $60.5 million  19.5%
Adjusted FFO               $56.5 million  $40.0 million  $16.5 million
Adjusted FFO per diluted   $0.29          $0.24          $0.05
share
Net Income                 $16.6 million  $4.9 million   $11.7 million
Earnings per diluted share $0.09          $0.03          $0.06
Diluted Weighted Average   195.6 million  168.2 million
Shares

Appointment of Chief Operating Officer

Robert Tanenbaum will join the Company on April 1, 2013 and will be appointed
as Chief Operating Officer and Executive Vice President, Asset Management no
later than May 1, 2013.Mr. Tanenbaum will lead the Company's asset management
efforts and will report directly to Mark W. Brugger, President and Chief
Executive Officer. Mr. Tanenbaum brings over 20 years of experience in the
hospitality industry to the Company. Most recently he was the Principal of
Madison Hotel Advisors, LLC, which he founded in 2004 and whose clients
include Goldman Sachs' Whitehall Funds and Equity Group Investments.Prior to
founding Madison Hotel Advisors, LLC, he was a Vice President of Asset
Management with Host Hotels & Resorts from 1996 to 2004. His experience prior
to that includes PKF Consulting in San Francisco, CA and Four Seasons Hotels
in Chicago, IL and Maui, HI.Additionally, Mr. Tanenbaum is an active member
of the Hospitality Asset Managers Association and is a graduate of the
Pennsylvania State University with a Bachelor of Science degree in Hotel
Restaurant and Institutional Management.

Capital Expenditures

2012 - The Company continued to invest in its portfolio by spending
approximately $49.3 million on capital improvements during 2012. Of that
amount, approximately $23.4 million was funded from corporate cash and the
balance from restricted cash reserves held by hotel managers. The most
significant projects for 2012 included the following:

  oConrad Chicago: The Company added 4,100 square feet of new meeting space
    in 2012 and expects to reposition the food and beverage outlets and
    re-concept the hotel lobby during the first quarter of 2013.
  oRenaissance Worthington: The Company substantially completed a
    comprehensive restoration of the concrete facade of the hotel.
  oMarriott Atlanta Alpharetta: The Company completed a renovation of the
    guest rooms at the hotel.
  oFrenchman's Reef: The Company renovated the premium Morning Star guest
    rooms during the fourth quarter of 2012 and completed a renovation of the
    boat dock in early 2013.

2013 - The Company expects to spend approximately $140 million for capital
improvements in 2013 and early 2014. A description of the most significant
planned capital projects are as follows:

  oLexington Hotel New York: In connection with executing the rebranding
    strategy at the Lexington Hotel, the Company has begun a comprehensive
    renovation of the hotel, including the lobby, corridors, guest rooms and
    guest bathrooms. The current estimated renovation cost is $40 million to
    $45 million and is expected to be completed during the third quarter of
    2013.
  oManhattan Courtyards: The Company is currently renovating the guest rooms
    and guest bathrooms at the Courtyard Manhattan/Midtown East and Courtyard
    Manhattan/Fifth Avenue. The renovation scope at the Courtyard Midtown
    East also includes the public space and the addition of five new guest
    rooms. The renovations will be substantially complete during the first
    half of 2013.
  oWestin Washington D.C.: The Company expects to undertake a comprehensive
    renovation during 2013 to reposition the hotel to capture higher-rated
    business, leisure and group customers. The renovation scope will touch
    every aspect of the guest experience, including the guest rooms,
    corridors, meeting space and the lobby.
  oWestin San Diego: The Company expects to undertake a comprehensive
    renovation beginning in late 2013 of the guestrooms, corridors, lobby,
    public areas, and meeting space.
  oHilton Boston Downtown: The Company expects to undertake a renovation of
    the guestrooms, corridors, public areas, and meeting space in 2014.
  oHilton Burlington: The Company expects to undertake renovations of the
    corridors and guestrooms in 2014.

The Company expects renovation disruption of $10 to $12 million of Hotel
Adjusted EBITDA during the year ended December 31, 2013 as a result of these
projects. This disruption has been factored into the Company's outlook for
2013 detailed below.

2013 Reporting Calendar Change

In 2013, the Company will report its quarterly results of operations on a
calendar quarter basis. Historically, the Company reported its quarterly
results of operations based on the fiscal calendar used by Marriott
International. Since the Company is not changing its fiscal year, its
financial information will not be restated in its quarterly filings with the
U.S. Securities and Exchange Commission. The following table highlights the
changes in the Company's reporting calendar.

Quarter 2012 Old Calendar                      2013 Calendar
1^st    Marriott     January 1 – March 23      All January 1 – March 31
        Non-Marriott January 1 – February 28
2^nd    Marriott     March 24 – June 15        All April 1 – June 30
        Non-Marriott March 1 – May 31
3^rd    Marriott     June 16 – September 7     All July 1 – September 30
        Non-Marriott June 1 – August 31
4^th    Marriott     September 8 – December 31 All October 1 – December 31
        Non-Marriott September 1 – December 31

The Company's 2013 quarterly results will not be directly comparable to its
2012 results, since Marriott International will not provide restated 2012
operating statements. Instead, in comparing 2013 quarterly results to 2012
results, the Company will (i) use the non-Marriott 2012 results on a calendar
quarter basis and (ii) use Marriott 2012 results as follows:

  oThe first quarter of 2012 will include Marriott operating results from
    January 1 to March 23.
  oThe second quarter of 2012 will include Marriott operating results from
    March 24 to June 15.
  oThe third quarter of 2012 will include Marriott operating results from
    June 16 to October 5.
  oThe fourth quarter of 2012 will include the Marriott operating results
    from October 6 to December 31.

The following table reallocates selected 2012 quarterly pro forma operating
information as described above into the 2013 reporting calendar.

                       Quarter 1,    Quarter 2,    Quarter 3,    Quarter 4,
                       2012          2012          2012          2012
RevPAR                 $       $       $       $      
                       117.09        146.48        139.56        133.36
Revenues (in           $        $        $        $     
thousands)             167,026       210,809       228,371       196,005
Hotel Adjusted EBITDA  $       $       $       $      
(in thousands)         35,685        64,564        63,776        54,085
% of Full Year         16.4%         29.6%         29.2%         24.8%
Hotel Adjusted EBITDA  21.36%        30.63%        27.93%        27.59%
Margin
Available Rooms        1,004,405     1,010,443     1,184,252     1,034,027

Dividends

The Company's Board of Directors declared a quarterly dividend of $0.08 per
share to stockholders of record as of December 31, 2012. The dividend was
paid on January 10, 2013. The Company increased its quarterly dividend for
2013 by 6% and its Board of Directors declared a quarterly dividend of $0.085
per share for stockholders of record as of March 31, 2013. The dividend will
be paid on April 12, 2013.

Outlook and Guidance

The Company is providing annual guidance for 2013, but does not undertake to
update it for any developments in its business. Achievement of the
anticipated results is subject to the risks disclosed in the Company's filings
with the U.S. Securities and Exchange Commission. The Company's 2013 RevPAR
guidance assumes all of the Company's 27 hotels were owned since January 1,
2012.

Based on its outlook, the Company expects the following full year 2013
results:

Metric              Pre-Renovation Guidance Renovation         2013 Guidance
                                            Disruption
Pro Forma RevPAR    4 percent to 6 percent  3 percent          1 percent to 3
Growth                                                         percent
                                           
                                                              
Adjusted EBITDA     $207 million to $215    $10 million to $12 $195 million to
                    million                 million            $205 million

                                                             
Adjusted FFO        $146 million to $152    $7 million to $8   $138 million to
                    million                 million            $145 million

                                                             
Adjusted FFO per
share               $0.75 to $0.78          $0.04 to $0.05     $0.70 to $0.74
(based on 195.9
million shares)                                              



Earnings Call

The Company will host a conference call to discuss its fourth quarter and full
year results on Friday, March 1, 2013, at 10:00 a.m. Eastern Time (ET). To
participate in the live call, investors are invited to dial 866-825-3209 (for
domestic callers) or 617-213-8061 (for international callers). The
participant passcode is 85514453. A live webcast of the call will be available
via the investor relations section of DiamondRock Hospitality Company's
website at www.drhc.com or www.earnings.com. A replay of the webcast will also
be archived on the website for one year.

About the Company

DiamondRock Hospitality Company is a self-advised real estate investment trust
(REIT) that is an owner of premium hotel properties. The Company owns 27
premium hotels with approximately 11,600 rooms and holds one senior mortgage
loan. The Company's hotels are generally operated under globally recognized
brands such as Hilton, Marriott, and Westin. For further information, please
visit DiamondRock Hospitality Company's website at www.drhc.com.

This press release contains forward-looking statements within the meaning of
federal securities laws and regulations. These forward-looking statements are
identified by their use of terms and phrases such as "believe," "expect,"
"intend," "project," "forecast," "plan" and other similar terms and phrases,
including references to assumptions and forecasts of future results.
Forward-looking statements are not guarantees of future performance and
involve known and unknown risks, uncertainties and other factors which may
cause the actual results to differ materially from those anticipated at the
time the forward-looking statements are made. These risks include, but are
not limited to: national and local economic and business conditions, including
the potential for additional terrorist attacks, that will affect occupancy
rates at the Company's hotels and the demand for hotel products and services;
operating risks associated with the hotel business; risks associated with the
level of the Company's indebtedness; relationships with property managers; the
ability to compete effectively in areas such as access, location, quality of
accommodations and room rate structures; changes in travel patterns, taxes and
government regulations which influence or determine wages, prices,
construction procedures and costs; risks associated with the development of a
hotel by a third-party developer; risks associated with the rebranding of the
Lexington Hotel New York; and other risk factors contained in the Company's
filings with the Securities and Exchange Commission. Although the Company
believes the expectations reflected 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 release is as of the date of this release, 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.

Reporting Periods for Statement of Operations

The results reported in the Company's consolidated statements of operations
are based on results of its hotels reported by hotel managers. The Company's
hotel managers use different reporting periods. Marriott International, the
manager of most of the Company's hotels, uses a fiscal year ending on the
Friday closest to December 31 and reports 12 weeks of operations for the first
three quarters and 16 or 17 weeks for the fourth quarter of the year for its
domestic managed hotels. In contrast, Marriott International for its
non-domestic hotels (including Frenchman's Reef), Davidson Hotel Company,
manager of the Hilton Boston, Vail Resorts, manager of the Vail Marriott,
Hilton Hotels Corporation, manager of the Conrad Chicago and the Hilton
Minneapolis, Westin Hotel Management, L.P., manager of the Westin Boston
Waterfront, Alliance Hospitality Management, manager of the Hilton Garden Inn
Chelsea, Sage Hospitality, manager of the JW Marriott Denver Cherry Creek and
the Courtyard Denver, Highgate Hotels, manager of the Lexington Hotel,
Interstate Hotels and Resorts, manager of the Westin Washington D.C., the
Westin San Diego and the Hilton Burlington, and Joie de Vivre Hospitality,
LLC, manager of the Hotel Rex report results on a monthly basis (collectively,
the "monthly-reporting hotels). Additionally, the Company, as a REIT, is
required by U.S. federal tax laws to report results on a calendar year basis.
As a result, the Company has adopted the reporting periods used by Marriott
International for its domestic hotels, except that the fiscal year always ends
on December 31 to comply with REIT rules. The first three fiscal quarters end
on the same day as Marriott International's fiscal quarters but the fourth
quarter ends on December 31 and full year results, as reported in the
statement of operations, always include the same number of days as the
calendar year.

Two consequences of the reporting cycle the Company has adopted are: (1)
quarterly start dates will usually differ between years, except for the first
quarter which always commences on January 1, and (2) the first and fourth
quarters of operations and year-to-date operations may not include the same
number of days as reflected in prior years.

While the reporting calendar the Company adopted is more closely aligned with
the reporting calendar used by the manager of most of its properties, one
final consequence of the calendar is the Company is unable to report any
results for the monthly-reporting hotels for the month of operations that ends
after its fiscal quarter-end because none of the managers of these hotels make
mid-month results available. As a result, the quarterly results of operations
include results from these hotels as follows: first quarter (January and
February), second quarter (March to May), third quarter (June to August) and
fourth quarter (September to December). While this does not affect full-year
results, it does affect the reporting of quarterly results.

Beginning in 2013, the Company will report its quarterly results of operations
on a calendar quarter basis.



DIAMONDROCK HOSPITALITY COMPANY
CONSOLIDATED BALANCE SHEETS
As of December 31, 2012 and 2011
(in thousands, except share and per share amounts)
                                                    2012          2011
ASSETS
Property and equipment, at cost                     $ 3,131,175   $ 2,667,682
Less: accumulated depreciation                      (519,721)     (433,178)
                                                    2,611,454     2,234,504
Assets held for sale                                —             263,399
Deferred financing costs, net                       9,724         5,869
Restricted cash                                     76,131        53,871
Due from hotel managers                             68,532        50,728
Note receivable                                     53,792        54,788
Favorable lease assets, net                         40,972        43,285
Prepaid and other assets                            73,814        65,900
Cash and cash equivalents                           9,623         26,291
Total assets                                        $ 2,944,042   $ 2,798,635
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgage debt                                       $ 968,731     $ 762,933
Mortgage debt of assets held for sale               —             180,000
Senior unsecured credit facility                    20,000        100,000
Total debt                                          988,731       1,042,933
Deferred income related to key money, net           24,362        24,593
Unfavorable contract liabilities, net               80,043        81,914
Due to hotel managers                               51,003        41,676
Liabilities of assets held for sale                 —             3,805
Dividends declared and unpaid                       15,911        13,594
Accounts payable and accrued expenses               88,879        87,963
Total other liabilities                             260,198       253,545
Stockholders' Equity:
Preferred stock, $0.01 par value; 10,000,000 shares
authorized; no shares                               —             —
 issued and outstanding
Common stock, $0.01 par value; 400,000,000 shares
authorized;
 195,145,707 and 167,502,359 shares issued and    1,951         1,675
outstanding at
 December 31, 2012 and December31, 2011,
respectively
Additional paid-in capital                          1,976,200     1,708,427
Accumulated deficit                                 (283,038)     (207,945)
Total stockholders' equity                          1,695,113     1,502,157
Total liabilities and stockholders' equity          $ 2,944,042   $ 2,798,635



DIAMONDROCK HOSPITALITY COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
                    Fiscal Quarter Ended December 31,  Year Ended December 31,
                    2012               2011            2012         2011
                    (Unaudited)        (Unaudited)
Revenues:
Rooms               $    188,070       $   153,005     $ 526,113    $ 431,219
Food and beverage   62,971             54,364          180,387      159,744
Other               15,360             10,772          43,147       31,213
Total revenues      266,401            218,141         749,647      622,176


Operating Expenses:
Rooms               47,643             40,743          140,029      115,786
Food and beverage   43,207             37,852          128,938      114,029
Management fees     9,603              8,143           24,915       21,631
Other hotel         90,815             75,584          261,947      221,471
expenses
Depreciation and    37,350             28,206          100,152      85,376
amortization
Impairment losses   —                  —               30,844       —
Hotel acquisition   245                (84)            10,591       2,521
costs
Corporate expenses  5,383              6,346           21,095       21,247
Total operating     234,246            196,790         718,511      582,061
expenses
Operating income    32,155             21,351          31,136       40,115


Other Expenses
(Income):
Interest income     (29)               (33)            (307)        (614)
Interest expense    17,061             15,292          53,771       45,406
Gain on early
extinguishment of   —                  —               (144)        —
debt
Total other         17,032             15,259          53,320       44,792
expenses
Income (Loss) from
continuing          15,123             6,092           (22,184)     (4,677)
operations before
income taxes
Income tax benefit  1,166              (1,675)         6,158        (3,322)
(expense)
Income (Loss) from
continuing          16,289             4,417           (16,026)     (7,999)
operations
Income (Loss) from
discontinued        339                520             (566)        321
operations, net of
income taxes

                    $    16,628        $   4,937       $ (16,592)   $ (7,678)
Net income (loss)


Earnings (Loss) per
share:
Continuing          $    0.09          $   0.03        $ (0.09)     $ (0.05)
operations
Discontinued        0.00               0.00            (0.00)       (0.00)
operations
Basic and diluted
earnings (loss) per $    0.09          $   0.03        $ (0.09)     $ (0.05)
share

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, 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
GAAP. EBITDA, 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.

EBITDA and FFO

EBITDA represents net (loss)income excluding: (1)interest expense;
(2)provision for income taxes, including income taxes applicable to sale of
assets; and (3)depreciation and amortization. We believe EBITDA is useful to
an investor in evaluating our operating performance because it helps investors
evaluate and compare the results of our operations from period to period by
removing the impact of our capital structure (primarily interest expense) and
our asset base (primarily depreciation and amortization) from our operating
results. In addition, covenants included in our indebtedness use EBITDA as a
measure of financial compliance. We also use EBITDA as one measure in
determining the value of hotel acquisitions and dispositions.

The Company computes FFO in accordance with standards established by NAREIT,
which defines FFO as net (loss) income determined in accordance with GAAP,
excluding gains or losses from sales of properties and impairment losses, plus
depreciation and amortization. The Company believes that the presentation of
FFO provides useful information to investors regarding its operating
performance because it is a measure of the Company's operations without regard
to specified non-cash items, such as real estate depreciation and amortization
and gain or loss on sale of assets. The Company also uses FFO as one measure
in assessing its results.

Adjustments to EBITDA and FFO

We adjust FFO and EBITDA when evaluating our performance because we believe
that the exclusion of certain additional recurring and non-recurring items
described below provides useful supplemental information to investors
regarding our ongoing operating performance and that the presentation of
Adjusted EBITDA and Adjusted FFO, when combined with GAAP net income, EBITDA
and FFO, is beneficial to an investor's complete understanding of our
operating performance. We adjust EBITDA and FFO for the following items:

  oNon-Cash Ground Rent: We exclude the non-cash expense incurred from
    straight lining the rent from our ground lease obligations and the
    non-cash amortization of our favorable lease assets.
  oNon-Cash Amortization of Favorable and Unfavorable Contracts: We exclude
    the non-cash amortization of the favorable management contract assets
    recorded in conjunction with our acquisitions of the Westin Washington
    D.C. City Center, Westin San Diego, and Hilton Burlington and the
    unfavorable contract liabilities recorded in conjunction with our
    acquisitions of the Bethesda Marriott Suites, the Chicago Marriott
    Downtown, the Renaissance Charleston and the Lexington Hotel New York.
    The amortization of the favorable and unfavorable contracts does not
    reflect the underlying operating performance of our hotels.
  oCumulative Effect of a Change in Accounting Principle: Infrequently, the
    Financial Accounting Standards Board (FASB) promulgates new accounting
    standards that require the consolidated statement of operations to reflect
    the cumulative effect of a change in accounting principle. We exclude the
    effect of these one-time adjustments because they do not reflect its
    actual performance for that period.
  oGains from Early Extinguishment of Debt: We exclude the effect of gains
    recorded on the early extinguishment of debt because we believe they do
    not accurately reflect the underlying performance of the Company.
  oAcquisition Costs: We exclude acquisition transaction costs expensed
    during the period because we believe they do not reflect the underlying
    performance of the Company.
  oAllerton Loan: In 2010 and 2011, we included cash payments received on
    the senior loan secured by the Allerton Hotel in Adjusted EBITDA and
    Adjusted FFO. GAAP requires us to record the cash received from the
    borrower as a reduction of our basis in the mortgage loan due to the
    uncertainty over the timing and amount of cash payments on the loan. In
    2012, due to the uncertainty of the timing of the bankruptcy resolution,
    we excluded both cash interest payments received from the borrower and the
    legal costs incurred as a result of the bankruptcy proceedings from our
    calculation of Adjusted EBITDA and Adjusted FFO. We have not adjusted our
    2011 Adjusted EBITDA and Adjusted FFO calculations to reflect this change
    in presentation. Beginning in 2013, we will begin to record interest
    income on the loan as a result of the settlement of the bankruptcy
    proceedings, which will be included in the calculation of EBITDA and FFO.
    We will reduce Adjusted EBITDA and Adjusted FFO for the cash payments
    previously recognized in 2010 and 2011, which will be amortized over the
    term of the new loan.
  oOther Non-Cash and/or Unusual Items: We exclude the effect of certain
    non-cash and/or unusual items because we believe they do not reflect the
    underlying performance of the Company. In 2012, we excluded the franchise
    termination fee paid to Radisson because we believe that including it does
    not reflect the ongoing performance of the hotel. In 2013, we will exclude
    the severance costs related to the retirement of our President and Chief
    Operating Officer.

In addition, to derive Adjusted EBITDA we exclude gains or losses on
dispositions and impairment losses because we believe that including them in
EBITDA is not consistent with reflecting the ongoing performance of our
hotels. Additionally, the gain or loss on dispositions and impairment losses
represent either accelerated depreciation or excess depreciation in previous
periods, and depreciation is excluded from EBITDA.

In addition, to derive Adjusted FFO we exclude any fair value adjustments to
debt instruments. Specifically, we exclude the impact of the non-cash
amortization of the debt premium recorded in conjunction with the acquisition
of the JW Marriott Denver at Cherry Creek and fair market value adjustments to
the Company's interest rate cap agreement.

The following tables are reconciliations of our U.S. GAAP net income (loss) to
EBITDA and Adjusted EBITDA (in thousands):

                     Fiscal Quarter Ended          Year Ended December 31,
                     December 31,
                     2012           2011           2012            2011
Net income (loss)    $  16,628      $  4,937       $  (16,592)     $ (7,678)
Interest expense (1) 17,061         18,419         56,068          55,507
Income tax (benefit) (1,242)        1,829          (6,046)         2,623
expense (2)
Real estate
deprectiation and    37,350         32,389         101,498         99,224
amortization (3)
EBITDA               69,797         57,574         134,928         149,676
Non-cash ground rent 2,074          2,118          6,694           6,996
Non-cash
amortization of
favorable and        (357)          (576)          (1,653)         (1,860)
unfavorable
 contracts, net
Gain (Loss) on sale  61             —              (9,479)         —
of hotel properties
Gain on early
extinguishment of    —              —              (144)           —
debt
Acquisition costs    246            (84)           10,591          2,521
Allerton loan        —              1,459          —               3,163
interest payments
Allerton loan legal  476            —              2,493           —
fees
Franchise            —              —              750             —
termination fee
Litigation           —              —              —               1,650
settlement
Impairment losses    —              —              45,534          —
(4)
Adjusted EBITDA      $  72,297      $  60,491      $  189,714      $ 162,146
(1) Amounts include interest expense included in discontinued operations as
follows: $3.1 million in the fiscal quarter ended December 31, 2011; $2.3
million in the year ended December 31, 2012; and $10.1 million in the year
ended December 31, 2011.
(2) Amounts include income tax (expense) benefit included in discontinued
operations as follows $0.1 million in the fiscal quarter ended December 31,
2012; ($0.2) million in the fiscal quarter ended December 31, 2011; ($0.1)
million in the year ended December 31, 2012; and $0.7 million in the year
ended December 31, 2011.
(3) Amounts include depreciation expense included in discontinued operations
as follows: $4.2 million in the fiscal quarter ended December 31, 2011; $1.3
million in the year ended December 31, 2012; and $13.8 million in the year
ended December 31, 2011.
(4) Amount includes a $14.7 million impairment loss included in discontinued
operations.



                                Guidance
                                Pre Renovation 2013     Full Year 2013
                                Low End     High End    Low End     High End
Net income (1)                  $ 33,558    $ 40,558    $ 25,558    $ 33,558
Interest expense                59,000      58,400      59,000      58,400
Income tax expense (benefit)    1,600       4,200       (2,400)     1,200
Real estate related             107,000     106,000     107,000     106,000
depreciation and amortization
EBITDA                          201,158     209,158     189,158     199,158
Non-cash ground rent            6,400       6,400       6,400       6,400
Non-cash amortization of
favorable and unfavorable       (1,400)     (1,400)     (1,400)     (1,400)
 contracts, net
Key money write-off             (860)       (860)       (860)       (860)
Allerton interest income        (1,163)     (1,163)     (1,163)     (1,163)
Severence costs                 2,865       2,865       2,865       2,865
Adjusted EBITDA                 $ 207,000   $ 215,000   $ 195,000   $ 205,000
(1) Net income includes approximately $6.1 million of interest income related
to the Allerton loan.

The following tables are reconciliations of our U.S. GAAP net income (loss) to
FFO and Adjusted FFO (in thousands):

                     Fiscal Quarter Ended          Year Ended December 31,
                     December 31,
                     2012           2011           2012            2011
Net income (loss)    $  16,628      $  4,937       $  (16,592)     $ (7,678)
Real estate related
depreciation and     37,350         32,389         101,498         99,224
amortization(1)
Impairment losses    —              —              45,534          —
(2)
Loss (gain) on sale  61             —              (9,479)         —
of hotel properties
FFO                  54,039         37,326         120,961         91,546
Non-cash ground rent 2,074          2,118          6,694           6,996
Non-cash
amortization of
favorable and        (357)          (576)          (1,653)         (1,860)
unfavorable
 contracts, net
Gain on early
extinguishment of    —              —              (144)           —
debt
Acquisition costs    246            (84)           10,591          2,521
Allerton loan        —              1,459          —               3,163
interest payments
Allerton loan legal  476            —              2,493           —
fees
Franchise            —              —              750             —
termination fee
Litigation           —              —              —               1,650
settlement
Fair value
adjustments to debt  (28)           (212)          471             (373)
instruments
Adjusted FFO         $  56,450      $  40,031      $  140,163      $ 103,643
Adjusted FFO per     $  0.29        $  0.24        $  0.78         $ 0.62
share
(1) Amounts include depreciation expense included in discontinued operations
as follows: $4.2 million in the fiscal quarter ended December 31, 2011; $1.3
million in the year ended December 31, 2012; and $13.8 million in the year
ended December 31, 2011.
(2) Amount includes a $14.7 million impairment loss included in discontinued
operations.

                                Guidance
                                Pre Renovation          Full Year 2013
                                Low End     High End    Low End     High End
Net income (1)                  $ 33,558    $ 40,558    $ 25,558    $ 33,558
Real estate related             107,000     106,000     107,000     106,000
depreciation and amortization
FFO                             140,558     146,558     132,558     139,558
Non-cash ground rent            6,400       6,400       6,400       6,400
Non-cash amortization of
favorable and unfavorable       (1,400)     (1,400)     (1,400)     (1,400)
 contracts, net
Key money write-off             (860)       (860)       (860)       (860)
Allerton interest income        (1,163)     (1,163)     (1,163)     (1,163)
Severence costs                 2,865       2,865       2,865       2,865
Debt premium amortization       (400)       (400)       (400)       (400)
Adjusted FFO                    $ 146,000   $ 152,000   $ 138,000   $ 145,000
Adjusted FFO per share          $ 0.75      $ 0.78      $ 0.70      $ 0.74
(1) Net income includes approximately $6.1 million of interest income related
to the Allerton loan.

Use and Limitations of Non-GAAP Financial Measures

Our management and Board of Directors use EBITDA, Adjusted EBITDA, FFO and
Adjusted FFO to evaluate the performance of our hotels and to facilitate
comparisons between us and other lodging REITs, hotel owners who are not REITs
and other capital intensive companies. The use of these non-GAAP financial
measures has certain limitations. These non-GAAP financial measures as
presented by us, may not be comparable to non-GAAP financial measures as
calculated by other real estate companies. These measures do not reflect
certain expenses or expenditures that we incurred and will incur, such as
depreciation, interest and capital expenditures. We compensate for these
limitations by separately considering the impact of these excluded items to
the extent they are material to operating decisions or assessments of our
operating performance. Our reconciliations to the most comparable GAAP
financial measures, and our consolidated statements of operations and cash
flows, include interest expense, capital expenditures, and other excluded
items, all of which should be considered when evaluating our performance, as
well as the usefulness of our non-GAAP financial measures.

These non-GAAP financial measures are used in addition to and in conjunction
with results presented in accordance with GAAP. They should not be considered
as alternatives to operating profit, cash flow from operations, or any other
operating performance measure prescribed by GAAP. These non-GAAP financial
measures reflect additional ways of viewing our operations that we believe,
when viewed with our GAAP results and the reconciliations to the corresponding
GAAP financial measures, provide a more complete understanding of factors and
trends affecting our business than could be obtained absent this disclosure.
We strongly encourage investors to review our financial information in its
entirety and not to rely on a single financial measure.

Certain Definitions

In this release, when we discuss "Hotel Adjusted EBITDA," we exclude from
Hotel EBITDA the non-cash expense incurred by the hotels due to the straight
lining of the rent from our ground lease obligations, the non-cash
amortization of our favorable lease assets, the non-cash amortization of the
unfavorable contract liabilities recorded in conjunction with the acquisitions
of the Bethesda Marriott Suites, the Chicago Marriott Downtown, the
Renaissance Charleston and the Lexington Hotel New York. Hotel EBITDA
represents hotel net income excluding: (1) interest expense; (2) income taxes;
and (3) depreciation and amortization. Hotel Adjusted EBITDA margins are
calculated as Hotel Adjusted EBITDA divided by total hotel revenues. Net debt
is calculated as total debt outstanding less unrestricted cash.

DIAMONDROCK HOSPITALITY COMPANY
PRO FORMA HOTEL OPERATING DATA
Schedule of Property Level Results
(in thousands)
(unaudited)
                   Fiscal Quarter
                   Ended                       Year Ended December 31,
                   December 31,
                   2012       2011      %           2012        2011    %
                                        Change                          Change
Revenues:
Rooms             $        $       6.2%     $          $        7.0%
                   189,245    178,210            568,778     531,641
Food and beverage  63,045     60,459    4.3%     187,315     178,421    5.0%
Other              15,546     12,686    22.5%    46,290      38,492     20.3%
Total revenues     267,836    251,355   6.6%     802,383     748,554    7.2%
Operating
Expenses:
Rooms departmental 47,912     45,774    4.7%     148,703     137,654    8.0%
expenses
Food and beverage
departmental       43,276     41,433    4.4%     133,409     126,178    5.7%
expenses
Other direct       6,858      6,521     5.2%     21,893      20,651     6.0%
departmental
General and        21,192     21,001    0.9%     65,168      62,719     3.9%
administrative
Utilities          9,132      9,055     0.9%     28,461      28,375     0.3%
Repairs and        11,518     11,632    (1.0%)   35,749      35,125     1.8%
maintenance
Sales and          21,840     20,668    5.7%     67,050      62,820     6.7%
marketing
Base management    6,914      6,326     9.3%     20,352      18,858     7.9%
fees
Incentive          2,663      2,340     13.8%    5,556       5,205      6.7%
management fees
Property taxes     12,073     10,071    19.9%    37,211      34,658     7.4%
Ground rent        4,600      4,503     2.2%     14,603      14,199     2.8%
Other fixed        3,963      3,681     7.7%     11,180      10,656     4.9%
expenses
Total hotel        191,941    183,005   4.9%     589,335     557,098    5.8%
operating expenses
Hotel EBITDA       75,895     68,350    11.0%    213,048     191,456    11.3%
Non-cash ground    1,941      2,067     (6.1%)   6,445       6,908      (6.7%)
rent
Non-cash
amortization of
unfavorable        (426)      (426)     0.0%     (1,383)     (1,383)    0.0%
contract
liabilities
Hotel Adjusted     $       $      10.6%    $          $        10.7%
EBITDA             77,410    69,991             218,110     196,981
NOTE:

The pro forma operating data above includes the operating results for
the Company's portfolio of 27 hotels owned as of December 31, 2012
assuming they were owned since January 1, 2011 and excludes the
operating results of the four hotels sold during 2012.

Market Capitalization as of December 31, 2012

(in thousands, except per share data)


Enterprise Value
Common equity capitalization (at December 31, 2012 closing    $   1,762,877
price of $9.00/share)
Consolidated debt                                             988,731
Cash and cash equivalents                                     (9,623)
Total enterprise value                                        $   2,741,985
Share Reconciliation
Common shares outstanding                                     195,146
Unvested restricted stock held by management and employees    676
Share grants under deferred compensation plan held by         53
directors
Combined shares outstanding                                   195,875





Debt Summary as of December 31, 2012
(dollars in thousands)
Property                      Interest    Term        Outstanding   Maturity
                              Rate                    Principal
Courtyard Manhattan /         8.810%      Fixed       $        October
Midtown East                                          41,933       2014
Salt Lake City Marriott       5.500%      Fixed       28,640        January
Downtown                                                            2015
Courtyard Manhattan /         6.480%      Fixed       50,173        June 2016
Fifth Avenue
Los Angeles Airport           5.300%      Fixed       82,600        July 2015
Marriott
Frenchman's Reef Marriott     5.440%      Fixed       58,690        August
                                                                    2015
Renaissance Worthington       5.400%      Fixed       54,700        July 2015
Orlando Airport Marriott      5.680%      Fixed       57,583        January
                                                                    2016
Chicago Marriott Downtown     5.975%      Fixed       211,477       April 2016
Hilton Minneapolis            5.464%      Fixed       96,901        April 2021
JW Marriott Denver Cherry     6.470%      Fixed       40,761        July 2015
Creek
Lexington Hotel New York      LIBOR +     Variable    170,368       March 2015
                              3.00
Westin Washington D.C. City   3.990%      Fixed       74,000        January
Center                                                              2023
Debt premium (1)                                      905
 Total mortgage debt                               968,731
Senior unsecured credit       LIBOR +     Variable    20,000        January
facility                      1.90                                  2017
Total debt                                            $   
                                                      988,731


(1) Non-cash GAAP adjustment recorded upon the assumption of the JW
Marriott Denver at Cherry Creek mortgage debt in 2011.



Pro Forma Operating Statistics – Fourth Quarter (1)
                ADR                    Occupancy           RevPAR                  Hotel Adjusted EBITDA
                                                                                   Margin
                4Q 2012 4Q     B/(W)   4Q    4Q    B/(W)   4Q 2012 4Q     B/(W)    4Q     4Q 2011  B/(W)
                        2011           2012  2011                  2011            2012
Atlanta         $      $                                $    $                             -4
Alpharetta      140.21       9.0%    63.6% 67.4% (3.8%)  89.15       2.7%     27.29% 27.33%   bps
                        128.67                                     86.78
Bethesda        $      $                                $     $                             -63
Marriott        171.49       (2.0%)  63.2% 63.3% (0.1%)  108.32       (2.2%)   26.05% 26.68%   bps
Suites                  174.97                                     110.72
Boston Westin   $      $                                $     $                             212
(2)             223.12       5.4%    67.4% 65.7% 1.7%    150.49       8.2%     26.88% 24.76%   bps
                        211.66                                     139.05
Hilton Boston   $      $                                $     $                             -722
Downtown (2)    231.45       4.9%    68.5% 75.0% (6.5%)  158.56       (4.2%)   30.17% 37.39%   bps
                        220.66                                     165.55
Hilton          $      $                                $     $                             -1366
Burlington (2)  156.25       7.3%    74.2% 74.5% (0.3%)  115.94       6.8%     36.51% 50.17%   bps
                        145.61                                     108.51
Renaissance     $      $                                $     $                             360
Charleston     173.50       5.6%    85.4% 84.2% 1.2%    148.12       7.1%     33.36% 29.76%   bps
                        164.23                                     138.28
Hilton Garden   $      $                                $     $                             -71
Inn Chelsea     261.27       5.1%    98.5% 93.6% 4.9%    257.33       10.6%    50.73% 51.44%   bps
(2)                     248.59                                     232.61
Chicago         $      $                                $     $                             -145
Marriott        214.94       5.0%    78.2% 78.1% 0.1%    168.01       5.1%     28.65% 30.10%   bps
                        204.72                                     159.83
Chicago Conrad  $      $                                $     $                             -177
(2)             236.47       7.7%    82.4% 82.8% (0.4%)  194.75       7.1%     34.47% 36.24%   bps
                        219.55                                     181.86
Courtyard       $      $                                $     $                             136
Denver          161.28       8.9%    83.3% 84.1% (0.8%)  134.28       7.8%     44.28% 42.92%   bps
Downtown (2)            148.15                                     124.60
Courtyard       $      $                                $     $                             606
Fifth Avenue    315.53       7.0%    96.8% 89.4% 7.4%    305.55       15.9%    39.70% 33.64%   bps
                        295.00                                     263.70
Courtyard       $      $                                $     $                             -36
Midtown East    312.37       2.4%    88.8% 84.2% 4.6%    277.54       8.1%     41.08% 41.44%   bps
                        305.03                                     256.85
Frenchman's     $      $                                $     $                             3286
Reef (2)        200.04       (4.1%)  68.8% 78.1% (9.3%)  137.68       (15.5%)  8.39%  (24.47%) bps
                        208.56                                     162.94
JW Marriott     $      $                                $     $                             -10
Denver Cherry   229.58       1.5%    79.3% 75.3% 4.0%    182.04       6.9%     30.70% 30.80%   bps
Creek (2)               226.27                                     170.35
Los Angeles     $      $                                $    $                             465
Airport         107.22       4.1%    83.9% 80.9% 3.0%    90.00       8.1%     15.83% 11.18%   bps
                        102.98                                     83.27
Hilton          $      $                                $     $                             146
Minneapolis     149.81       1.0%    70.0% 68.6% 1.4%    104.83       3.0%     28.46% 27.00%   bps
(2)                     148.32                                     101.79
Oak Brook       $      $                                $    $                             262
Hills           132.72       11.5%   52.9% 54.0% (1.1%)  70.19       9.1%     12.58% 9.96%    bps
                        119.05                                     64.34
Orlando         $     $                                $    $                             212
Airport         99.35       2.5%    68.0% 69.8% (1.8%)  67.52       (0.2%)   20.06% 17.94%   bps
Marriott                96.94                                      67.66
                $      $                                $     $                             491
Hotel Rex (2)   189.15       12.4%   81.4% 79.4% 2.0%    153.89       15.3%    37.52% 32.61%   bps
                        168.21                                     133.47
Salt Lake City  $      $                                $    $                             685
Marriott        129.47       1.3%    67.5% 58.1% 9.4%    87.40       17.7%    31.22% 24.37%   bps
                        127.82                                     74.23
The Lodge at    $      $                                $     $                             56
Sonoma          242.15       4.5%    75.0% 69.3% 5.7%    181.68       13.1%    26.45% 25.89%   bps
                        231.82                                     160.61
Torrance        $      $                                $    $                             190
Marriott South  110.41       5.5%    78.5% 81.3% (2.8%)  86.69       1.9%     25.72% 23.82%   bps
Bay                     104.63                                     85.05
Vail Marriott   $      $                                $     $                             611
(2)             211.51       6.9%    55.8% 51.7% 4.1%    118.06       15.5%    18.07% 11.96%   bps
                        197.87                                     102.23
Lexington       $      $                                $     $                             56
Hotel New York  237.45       (1.6%)  95.2% 95.8% (0.6%)  225.97       (2.3%)   45.28% 44.72%   bps
(2)                     241.34                                     231.32
Westin San      $      $                                $     $                             -448
Diego (2)       144.03       (1.5%)  76.4% 72.0% 4.4%    110.08       4.5%     27.45% 31.93%   bps
                        146.21                                     105.29
Westin                  $                                        $  
Washington      $            (2.4%)  70.3% 74.7% (4.4%)  $           (8.1%)   31.51% 41.04%   -953
D.C. City       193.93 198.61                             136.27 148.33                          bps
Center (2)
Renaissance     $      $                                $     $                             289
Worthington     173.21       14.0%   64.4% 72.7% (8.3%)  111.56       1.0%     31.12% 28.23%   bps
                        151.96                                     110.48
Total/Weighted  $      $                                $     $                             105
Average         185.02       3.6%    74.7% 74.5% 0.2%    138.24       3.9%     28.90% 27.85%   bps
                        178.55                                     133.03
(1) The pro forma operating data includes the operating results for the Company's 27 hotels assuming
they were owned since January 1, 2011.
(2) The hotel reports results on a monthly basis. The data presented is based upon the Company's
reporting calendar for the fourth quarter and includes the months of September through December.



Pro Forma Operating Statistics – Full Year (1)
                ADR                    Occupancy           RevPAR                 Hotel Adjusted
                                                                                  EBITDA Margin
                YTD     YTD    B/(W)   YTD   YTD   B/(W)   YTD     YTD    B/(W)   YTD    YTD     B/(W)
                2012    2011           2012  2011          2012    2011           2012   2011
Atlanta         $      $                                $    $                           69
Alpharetta      139.59       5.6%    66.0% 67.8% (1.8%)  92.11       2.7%    29.90% 29.21%  bps
                        132.24                                     89.70
Bethesda        $      $                                $     $                           20
Marriott        166.08       (2.0%)  64.8% 64.4% 0.4%    107.69       (1.4%)  26.08% 25.88%  bps
Suites                  169.54                                     109.20
                $      $                                $     $                           -35
Boston Westin   203.85       3.1%    73.3% 69.7% 3.6%    149.46       8.5%    23.39% 23.74%  bps
                        197.64                                     137.69
Hilton Boston   $      $                                $     $                           -134
Downtown        220.59       7.2%    76.0% 77.6% (1.6%)  167.68       5.0%    35.67% 37.01%  bps
                        205.82                                     159.63
Hilton          $      $                                $     $                           134
Burlington      156.57       8.6%    73.8% 69.7% 4.1%    115.55       15.0%   37.13% 35.79%  bps
                        144.23                                     100.51
Renaissance     $      $                                $     $                           208
Charleston     180.50       7.8%    85.1% 84.6% 0.5%    153.58       8.4%    34.36% 32.28%  bps
                        167.50                                     141.74
Hilton Garden   $      $                                $     $                           -208
Inn Chelsea     217.77       2.1%    96.1% 92.6% 3.5%    209.30       6.0%    44.02% 46.10%  bps
                        213.29                                     197.42
Chicago         $      $                                $     $                           -39
Marriott        200.80       4.9%    74.1% 72.8% 1.3%    148.78       6.7%    23.50% 23.89%  bps
                        191.48                                     139.43
                $      $                                $     $                           -130
Chicago Conrad  213.51       7.8%    80.2% 83.9% (3.7%)  171.18       2.9%    29.52% 30.82%  bps
                        198.14                                     166.33
Courtyard       $      $                                $     $                           235
Denver          159.29       4.4%    84.6% 80.5% 4.1%    134.83       9.8%    45.46% 43.11%  bps
Downtown                152.56                                     122.84
Courtyard       $      $                                $     $                           299
Fifth Avenue    274.04       5.4%    91.7% 86.9% 4.8%    251.29       11.2%   30.96% 27.97%  bps
                        260.09                                     226.07
Courtyard       $      $                                $     $                           25
Midtown East    269.79       2.6%    86.7% 83.5% 3.2%    233.91       6.5%    34.59% 34.34%  bps
                        262.99                                     219.68
Frenchman's     $      $                                $     $                           2071
Reef            228.17       (0.5%)  78.7% 81.8% (3.1%)  179.48       (4.3%)  19.51% (1.20%) bps
                        229.24                                     187.53
JW Marriott     $      $                                $     $                           39
Denver Cherry   227.24       (1.3%)  76.4% 72.8% 3.6%    173.69       3.6%    29.72% 29.33%  bps
Creek                   230.21                                     167.59
Los Angeles     $      $                                $    $                           277
Airport         109.11       4.8%    86.7% 84.6% 2.1%    94.64       7.4%    18.49% 15.72%  bps
                        104.15                                     88.12
Hilton          $      $                                $     $                           -212
Minneapolis     143.19       0.7%    72.6% 73.7% (1.1%)  103.99       (0.8%)  27.12% 29.24%  bps
                        142.22                                     104.87
Oak Brook       $      $                                $    $                           65
Hills           120.39       4.4%    56.6% 54.3% 2.3%    68.12       8.7%    9.69%  9.04%   bps
                        115.30                                     62.64
Orlando         $      $                                $    $                           270
Airport         103.82      4.8%    72.2% 74.9% (2.7%)  74.97       1.1%    23.53% 20.83%  bps
Marriott                99.05                                      74.19
                $      $                                $     $                           613
Hotel Rex       178.93       15.3%   84.8% 81.3% 3.5%    151.72       20.2%   36.58% 30.45%  bps
                        155.20                                     126.24
Salt Lake City  $      $                                $    $                           454
Marriott        134.07       5.2%    66.4% 59.4% 7.0%    89.07       17.8%   29.64% 25.10%  bps
                        127.40                                     75.64
The Lodge at    $      $                                $     $                           306
Sonoma          235.86       8.3%    72.1% 70.4% 1.7%    170.05       10.9%   21.81% 18.75%  bps
                        217.76                                     153.32
Torrance        $      $                                $    $                           106
Marriott South  110.15       4.6%    82.6% 81.2% 1.4%    90.95       6.4%    25.62% 24.56%  bps
Bay                     105.31                                     85.46
                $      $                                $     $                           241
Vail Marriott   225.47       3.3%    63.7% 61.1% 2.6%    143.72       7.8%    27.82% 25.41%  bps
                        218.23                                     133.33
Lexington       $      $                                $     $                           -91
Hotel New York  205.70       2.5%    94.8% 95.5% (0.7%)  195.01       1.7%    35.99% 36.90%  bps
                        200.70                                     191.72
Westin San      $      $                                $     $                           -259
Diego           149.32       3.3%    79.3% 77.6% 1.7%    118.40       5.5%    30.04% 32.63%  bps
                        144.54                                     112.19
Westin                  $                                        $  
Washington      $            (1.4%)  73.2% 76.3% (3.1%)  $           (5.4%)  34.43% 38.13%  -370
D.C. City       193.77 196.49                             141.93 149.99                        bps
Center
Renaissance     $      $                                $     $                           -53
Worthington     161.04       2.6%    68.3% 71.9% (3.6%)  109.93       (2.6%)  29.26% 29.79%  bps
                        157.00                                     112.83
Total/Weighted  $      $                                $     $                           87
Average         175.43       4.0%    76.6% 75.7% 0.9%    134.36       5.3%    27.18% 26.31%  bps
                        168.61                                     127.61
(1) The pro forma operating data includes the operating results for the Company's 27 hotels assuming
they were owned since January 1, 2011.

Pro Forma Hotel Adjusted EBITDA Reconciliation
                 Fourth Quarter 2012 (1)
                                    Plus:        Plus:    Plus:       Equals:
                            Net                           Non-Cash    Hotel
                 Total      Income  Depreciation Interest Adjustments Adjusted
                 Revenues   /                    Expense  (2)         EBITDA
                            (Loss)
                 $      $    $       $     $      $   
Atlanta                                           
Alpharetta       4,680          471                -         1,277
                            806                  -
                 $      $    $       $     $      $   
Bethesda                                             
Marriott Suites  4,753            637               1,944       1,238
                            (1,343)              -
                 $      $                 $     $      $   
Boston Westin                $                     
(3)              24,786              2,618       2          6,663
                            4,043               -
                 $      $                 $     $      $   
Hilton Boston               $                     
Downtown (3)     7,696             1,745       -         2,322
                            577                  -
                 $      $                 $     $      $   
Hilton                      $                     
Burlington (3)   4,779             1,031      28           1,745
                            686                  -
                 $      $    $       $     $      $   
Renaissance                                        
Charleston       3,504          473               (39)         1,169
                            735                  -
                 $      $    $       $     $      $   
Hilton Garden                                     
Inn Chelsea (3)  5,468            583                -          2,774
                            2,191               -
                 $      $                 $     $      $   
Chicago                      $                       
Marriott         34,882              4,087  4,033 (487)        9,994
                            2,361
                 $      $                 $     $      $   
Chicago Conrad              $                     
(3)              9,599               1,148       -          3,309
                            2,161               -
Courtyard        $      $    $       $     $      $   
Denver Downtown                                   
(3)              3,112            320                -          1,378
                            1,058               -
                 $      $    $       $     $      $   
Courtyard Fifth                                   
Avenue           6,559            405           1,068 64           2,604
                            1,067
                 $      $    $       $     $      $   
Courtyard                                          
Midtown East     10,302           724           1,245  -          4,232
                            2,263
                 $      $                 $     $      $   
Frenchman's                  $                     
Reef (3)         15,591              2,027  1,039  -          1,308
                            (1,758)
JW Marriott      $      $    $       $     $      $   
Denver Cherry                                     
Creek (3)        7,062          602                 -          2,168
                            812                  754
                 $      $                 $     $      $   
Los Angeles                  $                     
Airport          16,942             1,765  1,406  -          2,682
                            (489)
                 $      $                 $     $      $   
Minneapolis                  $                       
Hilton (3)       16,537            2,363  1,724 (226)        4,706
                            845
                 $      $    $       $     $      $   
Oak Brook Hills                                     
                 7,051          310               111          
                            466                  -                   887
                 $      $    $       $     $      $   
Orlando Airport                                   
Marriott         5,913           945           1,042 -           1,186
                            (801)
                 $      $    $       $     $      $   
Hotel Rex                                         
                 2,036          274               -            
                            490                  -                   764
                 $      $    $       $     $      $   
Salt Lake City                                    
Marriott         7,783          929                -           2,430
                            992                  509
                 $      $    $       $     $      $   
The Lodge at                                      
Sonoma           6,392            462               -           1,691
                            1,229               -
Torrance         $      $    $       $     $      $   
Marriott South                                    
Bay              7,169          941               -           1,844
                            903                  -
                 $      $    $       $     $      $   
Vail Marriott                                     
(3)              7,060          738               -           1,276
                            538                  -
Lexington       $      $                 $     $      $   
Hotel New York               $                      
(3)              20,757            6,682  2,351 44           9,398
                            321
                 $      $                 $     $      $   
Westin San                  $                      
Diego (3)        8,336             1,298      56           2,288
                            934                  -
Westin           $      $                 $     $      $   
Washington D.C.             $                      
City Center (3)  8,474               1,523      58           2,670
                            1,089               -
                 $      $    $       $     $      $   
Renaissance                                        
Worthington      10,613           888                3            3,303
                            1,463               949
                 $      $    $       $     $      $   
Total                           35,989         1,558     
                 267,836   23,639              16,120              77,410
(1) The pro forma operating data includes the operating results for the
Company's 27 hotels assuming they were owned since January 1, 2011.
(2) The non-cash adjustments include expenses incurred by the hotels due to
the straight lining of the rent from ground lease obligations, the non-cash
amortization of favorable lease assets, and the non-cash amortization of
unfavorable contract liabilities.
(3) The hotel reports results on a monthly basis. The amounts presented are
based on the Company's reporting calendar for the fourth quarter and include
the months of September through December.



Pro Forma Hotel Adjusted EBITDA Reconciliation
                Fourth Quarter 2011 (1)
                                    Plus:        Plus:    Plus:       Equals:
                Total      Net                   Interest Non-Cash    Hotel
                Revenues   Income / Depreciation Expense  Adjustments Adjusted
                           (Loss)                         (2)         EBITDA
                $      $     $       $     $      $   
Atlanta                                           
Alpharetta      4,632           390               -           1,266
                           876                   -
Bethesda        $      $     $       $                 $   
Marriott                                 $         
Suites          4,760             643                 1,928   1,270
                           (1,301)               -
                $      $                  $                 $   
Boston Westin                $            $         
(3)             22,803     1,640    3,849          156  5,645
                                                 -
                $      $                  $     $      $   
Hilton Boston               $                     
Downtown (3)    9,003      1,950    1,416      -           3,366
                                                 -
                $      $     $       $     $      $   
Hilton                                             
Burlington (3)  4,618      1,726 563               28           2,317
                                                 -
                $      $     $       $     $      $   
Renaissance                                         
Charleston      3,233           464               (39)         
                           537                   -                   962
Hilton Garden   $      $     $       $     $      $   
Inn Chelsea                                       
(3)             4,930      1,953 583               -           2,536
                                                 -
Chicago         $      $     $       $     $      $   
Marriott                        3,982                  
                32,508     2,304              3,984   (486)       9,784
                $      $                  $     $      $   
Chicago Conrad              $                     
(3)             8,952      1,964    1,280      -           3,244
                                                 -
Courtyard       $      $     $       $     $      $   
Denver                                            
Downtown (3)    2,922           311            443  -           1,254
                           500
                $      $     $       $     $      $   
Courtyard                                          
Fifth Avenue    5,589           593          1,051   64           1,880
                           172
Courtyard       $      $     $       $     $      $   
Midtown East                                      
                9,391      1,949 709          1,234   -           3,892
                $      $                  $     $      $   
Frenchman's                  $                     
Reef (3)        10,268               1,803   887  -          
                           (5,203)                                    (2,513)
JW Marriott     $      $     $       $     $      $   
Denver Cherry                                     
Creek (3)       6,902           559            766  -           2,126
                           801
                $      $                  $     $      $   
Los Angeles                  $                     
Airport         15,727               1,796 1,369   -           1,759
                           (1,406)
                $      $                  $     $      $   
Minneapolis                  $                        
Hilton (3)      16,788             2,274 1,725   (294)       4,533
                           828
                $      $     $       $                 $   
Oak Brook                                $         
Hills           6,516            982                   167   
                           (500)                -                   649
Orlando         $      $     $       $     $      $   
Airport                                           
Marriott        5,842            997          1,028   -           1,048
                           (977)
                $      $     $       $     $      $   
Hotel Rex                                         
                1,748           274               -            
                           296                   -                   570
                $      $     $       $     $      $   
Salt Lake City                                    
Marriott        6,418           833            522  -           1,564
                           209
                $      $     $       $     $      $   
The Lodge at                                      
Sonoma          5,512           450               -           1,427
                           977                   -
Torrance        $      $     $       $     $      $   
Marriott South                                    
Bay             7,036           984               -           1,676
                           692                   -
                $      $     $       $     $      $   
Vail Marriott                                     
(3)             6,110          726               -            
                            5                   -                   731
Lexington       $      $                  $     $      $   
Hotel New York               $                      
(3)             21,275     6,326    3,140      44           9,514
                                                 4
                $      $                  $     $      $   
Westin San                  $                      
Diego (3)       8,437      1,529    1,109      56           2,694
                                                 -
Westin          $      $                  $     $      $   
Washington                  $                      
D.C. City       9,409      2,477    1,326      58           3,861
Center (3)                                       -
Renaissance     $      $     $       $     $      $   
Worthington                                        
                10,026     1,034 855            937  4            2,830
                $      $     $       $     $      $   
Total                           32,891          1,686     
                251,355   21,358               13,950              69,991
(1) The pro forma operating data includes the operating results for the
Company's 27 hotels assuming they were owned as of January 1, 2011.
(2) The non-cash adjustments include expenses incurred by the hotels due to
the straight lining of the rent from ground lease obligations, the non-cash
amortization of our favorable lease assets and the non-cash amortization of
our unfavorable contract liabilities.
(3) The hotel reports results on a monthly basis. The amounts presented are
based on the Company's reporting calendar for the fourth quarter and include
the months of September through December.

Pro Forma Hotel Adjusted EBITDA Reconciliation
                 Full Year 2012 (1)
                                    Plus:        Plus:    Plus:       Equals:
                            Net                           Non-Cash    Hotel
                 Total      Income  Depreciation Interest Adjustments Adjusted
                 Revenues   /                    Expense  (2)         EBITDA
                            (Loss)
                 $      $                 $     $      $   
Atlanta                      $                     
Alpharetta       15,340              1,350       -         4,587
                            3,237               -
                 $      $                 $     $      $   
Bethesda                     $                        
Marriott Suites  14,928              2,073      6,267       3,893
                            (4,447)              -
                 $      $                 $     $      $   
Boston Westin                $                     
                 72,755              8,700       7         17,019
                            8,312               -
                 $      $                 $     $      $   
Hilton Boston                $                     
Downtown         24,393              5,671       -         8,702
                            3,031               -
                 $      $                 $     $      $   
Hilton                       $                     
Burlington       14,000              3,349      91           5,198
                            1,758               -
                 $      $                 $     $      $   
Renaissance                  $                       
Charleston       11,379              1,524      (126)       3,910
                            2,512               -
                 $      $                 $     $      $   
Hilton Garden                $                     
Inn Chelsea      13,387              1,894       -         5,893
                            3,999               -
                 $      $                 $     $      $   
Chicago                      $                         
Marriott         96,735             12,978  13,003  (1,581)     22,737
                            (1,663)
                 $      $                 $     $      $   
Chicago Conrad               $                     
                 25,580              3,469       -         7,552
                            4,083               -
                 $      $                 $     $      $   
Courtyard                   $                     
Denver Downtown  9,393               1,028   175   -         4,270
                            3,067
                 $      $                 $     $      $   
Courtyard Fifth              $                      
Avenue           17,202            1,693 3,443   207          5,326
                            (17)
                 $      $                 $     $      $   
Courtyard                    $                     
Midtown East     27,787              2,372 3,949    -         9,612
                            3,291
                 $      $                 $     $      $   
Frenchman's                  $                     
Reef             55,752              6,421 3,372    -        10,879
                            1,086
JW Marriott      $      $                 $     $      $   
Denver Cherry                $                     
Creek            20,076              1,867 2,414    -         5,967
                            1,686
                 $      $                 $     $      $   
Los Angeles                  $                     
Airport          56,728            5,800 4,514    -        10,487
                            173
                 $      $                 $     $      $   
Minneapolis                  $                       
Hilton           49,075            7,622 5,524   (671)      13,310
                            835
                 $      $                 $     $      $   
Oak Brook Hills              $                      
                 21,946             2,504      486         2,127
                            (863)               -
                 $      $                 $     $      $   
Orlando Airport              $                     
Marriott         20,047              3,024 3,359    -         4,718
                            (1,665)
                 $      $    $       $     $      $   
Hotel Rex                                         
                 5,960            892                -         2,180
                            1,288               -
                 $      $                 $     $      $   
Salt Lake City               $                     
Marriott         24,136              2,876 1,664    -         7,153
                            2,613
                 $      $                 $     $      $   
The Lodge at                 $                     
Sonoma           18,994              1,506       -         4,143
                            2,637               -
Torrance         $      $                 $     $      $   
Marriott South               $                     
Bay              22,759              3,148       -         5,830
                            2,682               -
                 $      $                 $     $      $   
Vail Marriott                $                     
                 25,503              2,363       -         7,094
                            4,731               -
                 $      $                 $     $      $   
Lexington                   $                      
Hotel New York   53,904             13,798  6,695   145         19,400
                            (1,238)
                 $      $                 $     $      $   
Westin San                   $                      
Diego            26,288              4,217      182          7,898
                            3,499               -
Westin           $      $                 $     $      $   
Washington D.C.              $                      
City Center      26,196              4,950      189          9,018
                            3,879               -
                 $      $                 $     $      $   
Renaissance                  $                     
Worthington      32,140              2,871 3,061   11           9,403
                            3,460
                 $      $    $       $     $      $   
Total                          109,960                   
                 802,383   51,966              51,173  5,207      218,110
(1) The pro forma operating data includes the operating results for the
Company's 27 hotels assuming they were owned since January 1, 2011.
(2) The non-cash adjustments include expenses incurred by the hotels due to
the straight lining of the rent from ground lease obligations, the non-cash
amortization of favorable lease assets, and the non-cash amortization of
unfavorable contract liabilities.





Pro Forma Hotel Adjusted EBITDA Reconciliation
                 Full Year 2011 (1)
                                    Plus:        Plus:    Plus:       Equals:
                            Net                           Non-Cash    Hotel
                 Total      Income  Depreciation Interest Adjustments Adjusted
                 Revenues   /                    Expense  (2)         EBITDA
                            (Loss)
                 $      $                 $     $      $   
Atlanta                      $                     
Alpharetta       15,219              1,251      -           4,446
                            3,195               -
                 $      $                 $     $      $   
Bethesda                     $                        
Marriott Suites  15,092              2,094      6,271       3,906
                            (4,459)              -
                 $      $                 $     $      $   
Boston Westin                $                      
                 66,564             12,486       507         15,801
                            2,808               -
                 $      $                 $     $      $   
Hilton Boston                $                     
Downtown         25,826              4,603      -           9,558
                            4,955               -
                 $      $                 $     $      $   
Hilton                       $                     
Burlington       12,505              1,829      91           4,475
                            2,555               -
                 $      $                 $     $      $   
Renaissance                  $                        
Charleston       10,540              1,468      (126)       3,402
                            2,060               -
                 $      $                 $     $      $   
Hilton Garden                $                     
Inn Chelsea      12,544              1,865      -           5,783
                            3,918               -
                 $      $                 $     $      $   
Chicago                      $                          
Marriott         90,912             13,200  13,182  (1,581)    21,720
                            (3,081)
                 $      $                 $     $      $   
Chicago Conrad               $                     
                 24,904              4,697      -           7,676
                            2,979               -
                 $      $                 $     $      $   
Courtyard                   $                     
Denver Downtown  8,595               1,135  1,448  -           3,705
                            1,122
                 $      $                 $     $      $   
Courtyard Fifth              $                       
Avenue           15,547              1,909 3,465   207         4,348
                            (1,233)
                 $      $                 $     $      $   
Courtyard                    $                     
Midtown East     26,068              2,302  3,991  -           8,951
                            2,658
                 $      $                 $     $      $   
Frenchman's                  $                     
Reef             34,367              4,705  2,976  -           
                            (8,092)                                   (411)
JW Marriott      $      $                 $     $      $   
Denver Cherry                $                     
Creek            19,628              1,817  2,476 -           5,757
                            1,464
                 $      $                 $     $      $   
Los Angeles                  $                     
Airport          52,726              5,816  4,500  -           8,290
                            (2,026)
                 $      $                 $     $      $   
Minneapolis                  $                        
Hilton           50,769              7,348  3,998  (768)      14,844
                            4,266
                 $      $                 $     $      $   
Oak Brook Hills              $                       
                 20,471              3,191      542         1,851
                            (1,882)              -
                 $      $                 $     $      $   
Orlando Airport              $                     
Marriott         19,699              3,257  3,395 -           4,103
                            (2,549)
                 $      $    $       $     $      $   
Hotel Rex                                         
                 4,963          892               -           1,511
                            619                  -
                 $      $                 $     $      $   
Salt Lake City               $                     
Marriott         20,990            2,718  1,744 -           5,268
                            806
                 $      $                 $     $      $   
The Lodge at                 $                     
Sonoma           16,924              1,423      -           3,173
                            1,750               -
Torrance         $      $                 $     $      $   
Marriott South               $                     
Bay              22,093              3,188      -           5,427
                            2,239               -
                 $      $                 $     $      $   
Vail Marriott                $                     
                 23,225              2,254      -           5,901
                            3,647               -
                 $      $                 $     $      $   
Lexington Hotel              $                      
New York         52,767             10,189       148         19,469
                            9,119               13
                 $      $                 $     $      $   
Westin San                   $                      
Diego            25,356              3,604      182          8,273
                            4,487               -
Westin           $      $                 $     $      $   
Washington D.C.              $                      
City Center      28,316              4,311      189         10,798
                            6,298               -
                 $      $                 $     $      $   
Renaissance                  $                     
Worthington      31,944              2,732  3,098 11           9,515
                            3,674
                 $      $    $       $     $      $   
Total                          106,284                   
                 748,554   41,297              44,286  5,673      196,981
(1) The pro forma operating data includes the operating results for the
Company's 27 hotels assuming they were owned since January 1, 2011.
(2) The non-cash adjustments include expenses incurred by the hotels due to
the straight lining of the rent from ground lease obligations, the non-cash
amortization of favorable lease assets, and the non-cash amortization of
unfavorable contract liabilities.

SOURCE DiamondRock Hospitality Company

Website: http://www.diamondrockhospitality.com
Contact: Sean Mahoney, +1-240-744-1150
 
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