DiamondRock Hospitality (DRH) - Hoya Hotseat

Hoya Capital

DiamondRock Hospitality (DRH) - Hoya Hotseat In the News All DRH Jan 30 Written By Alex Pettee, CFA Hoya Capital DiamondRock Hospitality (NYSE:DRH) is the sixth-largest Hotel REIT, owning 37 hotels and resorts comprising over 10,000 rooms across 26 U.S. markets. DRH focuses primarily on independently operated hotels apart from the major brand networks, with a focus on leisure-oriented urban destinations and luxury resorts. CEO Jeff Donnelly joins the Hotseat to discuss the backstory and evolution of DRH from its roots as a Marriott spinoff in the early 2000s, its unique strategy to focus on non-branded hotels, the benefits of the REIT structure, and secular demand tailwinds and headwinds across the hotel REIT industry.

Continue reading ▶︎ Interviews Press All Hoya Hotseat DRH Alex Pettee, CFA Transcript sure Diamond Rock Hospitality we're are a hotel Reit um currently we own 37 hotels in the United States comprising about 10,000 hotel rooms our strategy is to provide our shareholders with Superior long-term total returns in the hotel real estate sector uh we maximize our return on investment through a focus on driving the highest free cash flow yield um what does that mean well we achieve Superior cash flow growth through a combination of maintaining things like a conservative balance sheet um a judicious focus on Capital expenditures to ensure that we're maximizing the return on that precious Capital uh we have a portfolio of hotels that is UN cumbered by long-term management contracts uh and nearly half of our hotels are independent of a brand and and fourth is a unique focus on destination Resorts it's a segment where we believe that there are really strong long-term secular drivers that should allow us to outperform Sure uh D Rock was born out of Marriot International in fact and our chairman uh brought this company public in 2005 um this year is our 20th anniversary um early on the portfolio was ...