DiamondRock Hospitality Computes 2005 Results and Raises Dividend
BETHESDA, MD, March 2, 2006. DiamondRock Hospitality Company (the "Company") today announced results of operations for the fiscal year ended December 31, 2005. DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner and acquirer of premium hotels in North America.
Fourth Quarter 2005 Highlights * Same-store revenue per available room ("RevPAR") increased 13.1 percent over the comparable period in 2004 for the twelve hotels addressed in prior guidance. * Hotel profit margins increased 269 basis points, as measured by hotel- level adjusted earnings before interest expense, income taxes, depreciation and amortization ("Hotel Adjusted EBITDA Margins") for the twelve hotels. * Adjusted EBITDA of $21.8 million. * Adjusted Funds from Operations ("Adjusted FFO") of $15.3 million, or $0.30 per diluted share. * Acquired the Orlando Airport Marriott for $70 million. Full Year 2005 Highlights * RevPAR increased 11.2 percent over the comparable period in 2004 for the twelve hotels. * Hotel Adjusted EBITDA Margins increased 233 basis points for the twelve hotels. * Adjusted EBITDA of $47.1 million. * Adjusted FFO of $31.1 million, or $0.79 per diluted share. * Completed over $600 million of hotel acquisitions during 2005.
William W. McCarten, chairman and chief executive officer, stated, "2005 was a remarkable year for DiamondRock. We successfully completed our initial public offering and acquired nine additional high quality hotels in a very competitive acquisition environment. Our exclusive acquisition sourcing relationship with Marriott has been a real advantage. In addition to our success at raising and successfully investing our capital, we are very proud of our financial results. Our hotel portfolio is performing well, exceeding our initial underwriting, and we are excited by our prospects in 2006. We believe that our portfolio will continue to benefit from the current strong demand for lodging and the preliminary impact of our value added asset management strategies -- for example, in 2006, we intend to invest $84 million in our hotels, which should deliver value for many years to come."
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