This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Diamondrock Hospitality's CEO Discusses Q4 2011 Results - Earnings Call Transcript

Stocks in this article: DRH

Turning to operating results. Today, we are pleased to report strong results for the fourth quarter and full year 2011, a continued evidence of substantial recovery in lodging fundamentals. For the full year, pro forma RevPAR increased 6.3%, and adjusted EBITDA was $162.1 million, which resulted in adjusted FFO per share of $0.62. Results would have been even higher except for the impact of 2 one-time items, the $10 million in total renovation disruption at our Caribbean resort, and we recorded an unexpected write-off of approximately $1 million in receivables related to the American Airlines bankruptcy. We saw exceptional performance from a number of our hotels in 2011. Particularly noteworthy, we experienced double-digit RevPAR growth at the Chicago Conrad, the Sonoma Renaissance, the Alpharetta Marriott and the Chicago Oak Brook Hills Marriott.

Additionally, the Hilton Minneapolis, a 2010 acquisition, turned in a RevPAR gain of almost 9%. Results were more challenged at the Griffin Gate Marriott due to a difficult comp and the Austin Renaissance. Both of these hotels are included in the 3-pact sales transaction, which is expected to close in short order. We wanted to quickly touch on the much publicized snowfall out west and its impact in our Vail Resort. We're happy to report that the snowfall has been considerable better over the last 7 weeks. In addition, one of our asset management initiatives last year was to implement a 45-day cancellation policy at the hotel. This policy allowed us to preserve our December reservations and report a 6% RevPAR increase for December at our Vail resort. We'd also like to take this opportunity to update on some particular events in the company. First, the Lexington Hotel in New York City. As John will discuss in more detail, we are planning to rebrand the Lexington Hotel and invest capital to allow this asset to reach its full potential. While the hotel already runs over 90% occupancy, we're convinced that implementing a strategy of rebranding the hotel will result in significant rate upside. We are also close to finalizing a $170 million loan on this hotel at an attractive rate. This loan allows us to completely pay off our corporate revolver and further positions us to be opportunistic on acquisitions.

Read the rest of this transcript for free on

3 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs