Thu, Jul. 14, 9:14 AM
- The company reduces its exposure to NYC by about 150 basis points with the sale of the 169-room Hilton Garden inn Chelsea for $65M to a Chinese investor. The sale price represents a 6.6% cap rate.
- Also sold is the 821-room Hilton Minneapolis for $143M, or a 7.6% cap rate. This hotel along with the recently-sold Orlando Airport Marriott ranked at the bottom of DiamondRock's (NYSE:DRH) portfolio as measured by average RevPAR.
- The company now expects to end the year with cash in excess of $200M, and no outstanding borrowings on its $300M credit facility. Adjusted FFO will be lower by $9.6M for the year.
Mon, Jun. 27, 3:20 PM
- There's plenty of green in the REIT space today, with the IYR off just 0.25% (vs. the S&P 500's 2% decline). Helping is the continuing plunge in interest rates, with the 10-year yield at 1.46% within seven basis points of an all-time low.
- Among the gainers are Realty Income (O +1.7%), National Retail Properties (NNN +1%), Senior Housing (SNH +2.2%), Omega Healthcare (OHI +0.9%), AvalonBay (AVB +1.1%), Kimco (KIM +1.3%), Tanger Factory (SKT +1.9%), and Public Storage (PSA +3.8%).
- Lodging REITs, however, are dependent on a steady stream of overseas tourist money, and the dollar's continued surge vs. everything not named the yen promises to crimp foreign visits. Ashford (AHT -6.6%), Sunstone (SHO -4.8%), LaSalle (LHO -4.1%), Pebblebrook (PEB -4.2%), Chesapeake (CHSP -3.3%), Host (HT -6.7%), DiamondRock (DRH -4.8%), Apple (APLE -2.9%), FelCor (FCH -5.4%).
Wed, Jun. 22, 4:11 PM
- The 485-room Orlando Airport Marriott Lakeside sold for about $67M, representing a 7.2% cap rate, and an 11.5x multiple on adjusted 2015 EBITDA.
- The sale is part of the company's plan to exit non-core assets, and this particular hotel had the lowest RevPAR ($92) in DiamondRock's (NYSE:DRH) portfolio, and requires a sizable near-term capital investment. The company figures the cap rate was closer to 4.9% once capex is figured in.
Wed, Jun. 15, 10:01 AM
- The San Francisco Board of Supervisors last week passed a bill requiring home-sharing services like Airbnb (Private:AIRB) to remove listings of units that have not been registered with the San Francisco Office of Short-Term Rentals.
- The team at Canaccord expects a near-term reduction of Airbnb listings of 80%, and nearly 50% on a stabilized basis. This should be a "marginal tailwind," and help San Francisco relative to other major hotel markets in coming months. Other cities are likely to follow suit.
- Buy rated stocks remain: Apple Hospitality (APLE +0.6%), DiamondRock (DRH +2%), Summit Hotel (INN +0.6%), Marriott (MAR +0.9%), and RLJ Lodging (RLJ +1.6%).
- Meanwhile, the lodging sector as a whole has its tail in the air as not only this news, but Airbnb's agreement to begin collecting occupancy tax in Pennsylvania filters through.
- Ashford (AHP +1.6%), (AHT +1.2%), Starwood (HOT +0.8%), Hospitality Properties (HPT +0.8%), Host Hotels (HST +1.5%), LaSalle (LHO +2.2%), Sunstone Hotel (SHO +1.1%), Pebblebrook (PEB +2.2%), Chesapeake (CHSP +1.3%), Chatham (CLDT +1.2%), Hersha (HT +1.4%)
Wed, Jun. 1, 4:37 PM
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
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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