The following is a summary of the DiamondRock Hospitality Company (DRH) Q1 2024 Earnings Call Transcript:

Financial Performance:

• DiamondRock's Q1 results depicted a slight decline in RevPAR by 0.4% compared to the previous year, but an overall revenue increase by 3.8%, largely driven by a robust performance in food and beverage.

• Expenses increased by over 6% largely due to a significant 24% surge in group banquet volumes.

• The company achieved its target of $0.17 of FFO per share.

• A conservative leverage strategy with a net debt to EBITDA ratio of 3.9 times is in place.

• Investment is focused on ROI projects such as the transformation of the Dagny Boston to boost earnings within the next 1-2 years.

Business Progress:

• Major leadership and organizational changes have taken place to streamline decision-making and improve performance.

• Steady group sales production in Q1, with group revenue for full-year 2024 already at 85% by end of first quarter.

• While no acquisitions or dispositions occurred in Q1, such opportunities are continuously being explored.

• Strategic plans involve being more deliberate in dispositions with a focus on non-core assets and urban property diversification.

• Efforts to improve management of loyalty redemption programs across different assets or properties are underway.

• A shift from contract labor towards full-time in-house staff has been implemented for improved productivity and loyalty.

• The company is receptive towards both, branded and unbranded hotels, with a preference for being unencumbered or not brand-managed.

More details: Diamondrock Hospitality Co IR

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