DiamondRock Reports Strong Q4 and Full Year Results

Raises Dividend

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. October 14, 2008

FEBRUARY 22, 2007. DiamondRock Hospitality Company (the "Company") (NYSE:DRH) today announced results of operations for its fourth fiscal quarter and full year 2006. 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 2006 Highlights

o RevPAR: Same-store revenue per available room ("RevPAR") increased 10.9 percent over the comparable period in 2005.

o Hotel Adjusted EBITDA Margins: Same-store hotel adjusted earnings before interest expense, taxes, depreciation and amortization ("Adjusted EBITDA") margins increased 282 basis points.

o Adjusted EBITDA: The Company's Adjusted EBITDA was $44.8

o Adjusted FFO: The Company reported adjusted funds from operations ("Adjusted FFO") of $30.7 million and Adjusted FFO per share of $0.40.

o Dividend: The Company declared a quarterly dividend of $0.18 per share during the fourth quarter.

o High Quality Hotel Acquisitions: The Company closed on three hotel acquisitions for combined contractual purchase prices of $355 million.

o Completed Successful Equity Raise: The Company raised net proceeds of $97 million in connection with a follow-on equity offering in the fourth quarter.

Full Year 2006 Highlights

o RevPAR: Same-store RevPAR increased 11.7 percent over the comparable period in 2005.

o Hotel Adjusted EBITDA Margins: Same-store hotel Adjusted EBITDA margins increased 300 basis points.

o Adjusted EBITDA: The Company's Adjusted EBITDA was $133.9 million.

o Adjusted FFO: The Company reported Adjusted FFO of $93.6 million and Adjusted FFO per diluted share of $1.38.

o High Quality Hotel Acquisitions: The Company closed on five hotel acquisitions for combined contractual purchase prices in excess of $700 million.

o Completed Two Successful Equity Raises: The Company raised net proceeds of $335 million in connection with two follow-on equity offerings.

o Subsequent Events: Shortly after the end of the year, the Company completed an equity raise for $318 million of net proceeds. The proceeds were used for the $330 million acquisition of the Westin Boston Waterfront hotel.

William W. McCarten, chairman and chief executive officer, stated, "2006 was a terrific year for DiamondRock with our portfolio of hotels and resorts generating double digit RevPAR increases and robust profit margin growth. We are very proud of the fact that DiamondRock ranked as the number one performing REIT in the Bloomberg lodging REIT index in 2006 based on total shareholder return. 2006 was a transformational year for the Company as we continued to improve our portfolio quality and geographic diversity with the acquisition of over $700 million of very high quality hotels. With the acquisition of the $330 million Westin Boston Waterfront hotel, more than seventy-five percent of DiamondRock's earnings are projected to come from 3 destination resorts and hotels in the 5 gateway cities of New York, Chicago, Atlanta, Boston and Los Angeles. The outlook for 2007 and 2008 remains bright. Having completed a number of major renovations at our hotels in the last two years, we are well positioned to leverage the continuing strength in the lodging market and restrained supply growth."