DiamondRock Hospitality Company Appoints Timothy Chi as Director and Member of Audit, Compensation and Nominating & Corporate Governance Committees, Effective June 1, 2015
May 22 15
On May 20, 2015, the Board of Directors of DiamondRock Hospitality Company appointed Mr. Timothy Chi to the Board, effective June 1, 2015, and increased the size of the Board from seven members to eight members. Mr. Chi was also appointed as a member of each of the Audit, Compensation and Nominating & Corporate Governance Committees. Mr. Chi is the co-founder and Chief Executive Officer of WeddingWire.
Diamondrock Hospitality Co. Reports Unaudited Consolidated Earnings Results for the First Quarter Ended March 31, 2015; Reports Impairment of Favorable Lease Asset for the First Quarter Ended March 31, 2015; Revises Earnings Guidance for the Year 2015
May 8 15
Diamondrock Hospitality Co. reported unaudited consolidated earnings results for the first quarter ended March 31, 2015. For the quarter, the company reported total revenues of USD 208,888,000 compared to USD 190,084,000 for the same period a year ago. Operating profit was USD 21,406,000 compared to USD 10,062,000 for the same period a year ago. Income before income taxes were USD 8,315,000 compared to loss before income taxes of USD 2,811,000 for the same period a year ago. Net income was USD 10,641,000 or USD 0.05 per basic and diluted share compared to net income of USD 4,037,000 or USD 0.02 per basic and diluted share for the same period a year ago. Adjusted EBITDA was USD 48,510,000 compared to USD 37,276,000 for the same period a year ago. Adjusted FFO was USD 37,697,000 or USD 0.19 per share compared to USD 29,514,000 or USD 0.15 per share for the same period a year ago. EBITDA was USD 45,871,000 compared to USD 36,837,000 for the same period a year ago. FFO was USD 35,764,000 compared to USD 29,160,000 for the same period a year ago. The company spent approximately USD 20.0 million on capital improvements during the quarter ended March 31, 2015, primarily related to the addition of 41 rooms at the Hilton Boston Downtown and the first phase of guest room renovation at the Chicago Marriott Downtown.
The company revised earnings guidance for the full year 2015. For the year, the company expects adjusted EBITDA in the range of USD 264 million to USD 274 million compared to previous guidance range of USD 262 million to USD 272 million, adjusted FFO in the range of USD 201 million to USD 206 million compared to previous guidance range of USD 201 million to USD 207 million, adjusted FFO per share in the range of USD 1.00 to USD 1.02 compared to previous guidance range of USD 1.00 to USD 1.03. The midpoint of the guidance range implies Pro-Forma Hotel adjusted EBITDA margin growth in the range of 100 basis points to 150 basis points. The company expects income tax expense of USD 10.4 million to USD 15.6 million, which has increased from previous guidance as a result of hotel outperformance. The company interest expense of USD 52.3 million to USD 52.5 million, which assumes the completion of the refinancing of the company's 2015 debt maturities; and depreciation expense of USD 97 million to USD 98 million. The company expects net income to be in the range of USD 96,714,000 to USD 102,714,000, FFO to be in the range of USD 195,500,000 to USD 200,500,000 and EBITDA to be in the range of USD 257,614,000 to USD 267,614,000. Pro Forma RevPAR growth is expected in the range of 6% - 7%. The company currently expects to spend approximately USD 85 million on capital improvements at its hotels in 2015.
For the quarter, the company reported impairment of favorable lease asset of USD 786,000.
DiamondRock Hospitality Company Refinances the Renaissance Worthington
Apr 15 15
DiamondRock Hospitality Company announced that it prepaid the mortgage loan secured by the Renaissance Worthington (hotel) and entered into a new $85 million mortgage loan secured by the hotel. The new loan bears interest at a fixed rate of 3.66%, will amortize on a 30-year amortization schedule after a two-year interest only period, and will mature in 2025. The new loan interest rate is over 170 basis points lower than the prepaid mortgage loan. The company used a portion of the proceeds from the new loan to prepay the outstanding balance on the previous mortgage loan, and expects to use the excess proceeds to partially fund the prepayment of the mortgage loan secured by the Frenchman's Reef & Morning Star Marriott Beach Resort, which may be repaid beginning in May 2015. The refinancing of the Renaissance Worthington and repayment of the Frenchman's Reef mortgage loans will lower the company's weighted average interest rate by approximately 15 basis points to 4.7%. After the completion of these two transactions, 16 of the company's 28 hotels will be unencumbered by property-specific mortgage debt. Moreover, the company expects to have no corporate debt and no outstanding preferred securities.