Thu, May 19, 9:58 AM
- RLJ Lodging Trust (RLJ -5.1%) is the recipient of a two-notch downgrade to Underperform from Buy at BAML.
- The sector as a whole is under a great deal of pressure again today, still reacting to the FOMC's surprising hawkishness yesterday. Not only do higher rates compete with these dividend payers, but operationally there's pain as the resultant stronger dollar slows foreign demand for rooms.
- Ashford Trust (AHT -3.6%), Sunstone Hotel (SHO -3.5%), LaSalle Hotel (LHO -3.7%), Chesapeake Lodging (CHSP -1.9%), Chatham Lodging (CLDT -1.8%), Host Hotels (HST -4.1%), Hersha Hospitality (HT -5.2%), DiamondRock (DRH -4.9%).
Mon, May 16, 4:18 PM
- Paid off is the note secured by the Courtyard Manhattan Fifth Avenue. It had an outstanding balance of $48.1M and a fixed rate of 6.48%. Funds came from a previously announced term loan.
- The company expects to lower its weighted interest rate to 3.8%, and save about $2M in annual interest expense.
- It's part of a larger multi-year financing plan expected to save about $14M in annual interest expense compared to 2014. Also, 19 of DRH's 29 hotels are now unencumbered by property-specific mortgage debt.
- Source: Press Release
Fri, May 6, 8:20 AM
- Q1 adjusted FFO of $42.8M or $0.21 per share vs. $37.7M and $0.19 one year ago.
- ADR of $205.08 up 1.8% Y/Y; Occupancy of 73.4% down 300 basis points; RevPAR of $150.61 down 2.1%.
- Adjusted EBITDA of $50.3M vs. $48.5M a year ago; margin of 26.42% improves 14 basis points.
- CEO Mark Brugger notes company responded to headwinds in Q1 by cutting operating expenses 2%, allowing an increase in adjusted EBITDA margin.
- Full-year AFFO guidance of $1.04-$1.09 per share roughly inline with consensus of $1.07.
- Previously: DiamondRock Hospitality beats by $0.03, misses on revenue (May 6)
- Earnings call at 10 ET
- DRH flat premarket
Fri, May 6, 8:05 AM
Thu, May 5, 5:30 PM
Tue, Mar. 29, 8:49 AM
- There's not a stock in the green Y/Y for the whole group, with many of the names down 25% or more.
- Two of the better performers have been Hospitality Properties Trust (NYSE:HPT) and Host Hotels and Resorts (NYSE:HST) - both down "just" about 20% - and they rate Buys as Stifel initiates coverage.
- Chatham Lodging (NYSE:CLDT), DiamondRock Hospitality (NYSE:DRH), Hersha Hospitality (NYSE:HT), LaSalle Hotel (NYSE:LHO), and Pebblebrook Hotel (NYSE:PEB) are all started at Hold.
Mon, Mar. 14, 4:50 PM
Fri, Mar. 11, 5:38 PM
Tue, Feb. 23, 8:27 AM
- Q4 adjusted FFO of $51.9M or $0.26 per share vs. $41.8M and $0.21 one year ago. Full-year AFFO of $1.01 per share vs. $0.87 in 2014.
- Q4 pro forma ADR of $217.23 up 1% Y/Y. Occupancy of 77.5% up 160 basis points. RevPAR of $168.32 up 3.1%. Adjusted EBITDA of $67M vs. $60.8M. Adjusted EBITDA margin of 31.26% up 114 basis points.
- Company takes note of Q4 results being held back by NYC hotels and the rebranding disruption at The Gwen Chicago.
- Full-year 2016 AFFO guidance of $1.04-$1.09 per share vs. $1.01 earned in 2015.
- Earnings call at 10 ET
- Previously: DiamondRock Hospitality beats by $0.01, revenue in-line (Feb. 23)
- DRH flat premarket
Tue, Feb. 23, 8:05 AM
Mon, Feb. 22, 5:30 PM
Wed, Feb. 17, 12:50 PM
- Relative to private-market valuations, hotel REIT prices look cheap (an average 27% discount to NAV), but during commercial real-estate downturns, you can through NAV out the window, says the team, with prices driven more by cash flow multiples than the intrinsic value of the real estate.
- Under such a scenario. trough multiples of 8.5-9.5x EBITDA would imply another 30-40% downside in the already roughed-up names.
- Credit Suisse cuts price targets across the sector by 20%, and FFO estimates this year by 5% (3% below consensus) and 12% in 2017 (12% below consensus).
- Top picks: Sunstone Hotel (SHO +2.6%), RLJ Lodging (RLJ +2.3%), Diamondrock Hospitality (DRH +3.1%). They have just a Neutral rating on Host Hotels (HST +2%), but says the stock could surprise to the upside this year.
- Previously: Host Hotels guides for about 8% FFO growth this year (Feb. 17)
Mon, Jan. 25, 3:16 PM
- Modest declines in the major averages are masking the continued liquidation in a number of financial sectors.
- Hotel REITs: Pebblebrook Hotel (PEB -2.4%), LaSalle Hotel (LHO -2.2%), FelCor Lodging (FCH -2.9%), DiamondRock Hospitality (DRH -3.3%)
- Nonbank servicing: Ocwen Financial (OCN -6.9%), Walter Investment (WAC -10.5%), Nationstar Mortgage (NSM -6.7%), Altisource Portfolio (ASPS -4.6%), New Residential (NRZ -3.2%)
- Mortgage REITs: Two Harbors (TWO -3.8%), Invesco (IVR -4.3%), American Capital Mortgage (MTGE -3.4%), Western Asset (WMC -3.7%), Apollo Residential (AMTG -3.8%), AG Mortgage (MITT -3.9%)
- BDCs: Prospect Capital (PSEC -4%), Apollo Investment (AINV -2.2%), Medley Capital (MCC -4.1%), Gladstone Capital (GLAD -4.4%). A few in this sector are managing gains though: Main Street (MAIN +1%), TICC Capital (TICC +1.9%), Harris & Harris (TINY +1.8%)
Wed, Jan. 13, 3:30 PM
- LaSalle Hotel Properties (LHO -7.3%) earlier cut its Q4 guidance, saying the weak RevPAR trends for it and the industry continued into the end of the year. At the moment, 2016 isn't looking so promising either, says the company.
- The broad markets are selling off sharply today, but the REITs not so much, and there are even a couple of pockets of green. Not in the lodging sector though:
- Hospitality Properties (HPT -3.1%), Ashford Hospitality (AHT -6.1%), Sunstone Hotel (SHO -6.3%), Pebblebrook Hotel (PEB -4%), Chesapeake Lodging (CHSP -4.9%), Summit Hotel (INN -5.6%), RLJ Lodging (RLJ -6.3%), Chatham Lodging (CLDT -3.2%), FelCor Lodging (FCH -10.2%), Host Hotels (HST -5.5%), Hersha Hospitality (HT -5.1%), DiamondRock (DRH -7.4%), Apple (APLE -1.6%)
Tue, Jan. 12, 11:13 AM
- The company prepaid the $201.7M mortgage secured by the Chicago Marriott Downtown Magnificent Mile. The move was funded with proceeds from a 4.36%, 10-year loan on the Boston Westin Waterfront Hotel taken out late last year (and a draw on the company $60M credit facility).
- The old mortgage was set to mature in April, and its prepayment saves DRH $2.7M in net interest expense.
- At this point, 18 of the company's 29 hotels are unencumbered by property-specific mortgage debt, and there's just one remaining maturity to take care of this year.
- Source: Press Release
Mon, Jan. 11, 10:07 AM
- It's been a brutal run for the lodging REITs, and JMP Securities has seen enough, downgrading DiamondRock Hospitality (DRH +0.7%), Host Hotels (HST +0.3%), and Ashford Trust and Ashford Prime (earlier) to Market Perform from Outperform.
- The group is down about 40% on a year-over-year basis, including 14% declines for the Ashford names just in 2016, and 5% drops for the other two.
DiamondRock Hospitality Co. is a lodging-focused Maryland corporation operating as a real estate investment trust. It owns a portfolio of premium hotels and resorts that contains guest rooms; a senior note on a mortgage loan secured by an additional hotel; and have the right to acquire, upon... More
Industry: REIT - Hotel/Motel
Country: United States
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