BETHESDA, Md., Aug. 1, 2023
/PRNewswire/ -- DiamondRock Hospitality Company (the "Company")
(NYSE: DRH) today announced the rebranding and debut of The Dagny,
an independent lifestyle hotel inspired by the glamour of the Art
Deco era. The 403-room boutique hotel is ideally located at the
very corner of work and play, Boston's Financial District and historic
Faneuil Hall, two of the largest demand generators in the city. The
Dagny highlights the duality of the hotel's unique location in the
design and programming of the guest experience.
"This strong return-on-investment opportunity advances
DiamondRock's strategy to curate unique and differentiated
experiences coveted by today's traveler. The Dagny is the Company's
thirteenth independent hotel, marking the first time more than
one-third of DiamondRock's portfolio is fully independent," said
Mark W. Brugger, President and Chief
Executive Officer of DiamondRock Hospitality Company.
The Dagny rebranding included a $32
million comprehensive investment to create an all-new,
immersive lobby experience, luxury guest rooms and bathrooms,
enhanced meeting facilities and a state-of-the-art fitness center.
The Company expects the hotel's net operating income to grow from
nearly $8 million in 2023 to
$11 million in 2024 and $15 million by 2027.
For more information or to place a reservation, please visit
https://www.thedagnyboston.com/.
About The Dagny
The Dagny, initially known as the Public Services Building and
later as the Batterymarch Building, was Boston's largest office building and first Art
Deco skyscraper when it was constructed in 1928. The building was
designed by notable artist and architect Harold Field Kellogg, and it housed many
prominent businesses during the 20th century. In 1995,
the Boston Landmarks Commission designated the exterior of the
Batterymarch Building be preserved because of stunning design and
contribution to Boston's
architectural history. The structural steel and reinforced concrete
frame are clad in over thirty shades of progressively lighter
polychrome brick to emphasize the verticality of the structure
while cast stone and decorative terra cotta elements adorn the
entrances with symbols of America, the industrial age and local
commerce. The building was converted to a hotel in 1998 as part of
the preservation effort. The lobby ceiling still has the original
goldleaf Art Deco mural of Atlas carrying the world on his
shoulders with the skyline of the City of
Boston appearing on the horizon.
About the Company
DiamondRock Hospitality Company is a self-advised real estate
investment trust (REIT) that is an owner of a leading portfolio of
geographically diversified hotels concentrated in leisure
destinations and top gateway markets. The Company currently
owns 35 premium quality hotels with over 9,600 rooms. The Company
has strategically positioned its hotels to be operated both under
leading global brand families as well as unique boutique hotels in
the lifestyle segment. For further information on the Company
and its portfolio, please visit DiamondRock Hospitality Company's
website at www.drhc.com.
This press release contains forward-looking statements within
the meaning of federal securities laws and regulations. These
forward-looking statements are identified by their use of terms and
phrases such as "believe," "expect," "intend," "project,"
"forecast," "plan" and other similar terms and phrases, including
references to assumptions and forecasts of future results.
Forward-looking statements are not guarantees of future performance
and involve known and unknown risks, uncertainties and other
factors which may cause the actual results to differ materially
from those anticipated at the time the forward-looking statements
are made. These risks and uncertainties include, but are not
limited to, the state of the U.S. economy and the supply of hotel
properties, and other factors as are described in greater detail in
the Company's filings with the SEC, including, without limitation,
the Company's Annual Report on Form 10-K for the year ended
December 31, 2022. Although the
Company believes the expectations reflected in such
forward-looking statements are based upon reasonable
assumptions, it can give no assurance that the expectations will be
attained or that any deviation will not be material. All
information in this release is as of the date of this release, and
the Company undertakes no obligation to update any forward-looking
statement to conform the statement to actual results or changes in
the Company's expectations.
The Dagny
Reconciliation of Hotel
Net Income to Hotel EBITDA and Hotel Net Operating
Income
(unaudited, in millions)
|
Year Ended
|
|
2023
|
|
2024
|
|
2027
|
Hotel Net Income
|
$ 3.5
|
|
$ 6.5
|
|
$
10.9
|
Depreciation and
amortization
|
5.7
|
|
6.0
|
|
5.9
|
Hotel EBITDA
|
9.2
|
|
12.5
|
|
16.8
|
Less: Capital
reserve
|
(1.4)
|
|
(1.5)
|
|
(1.8)
|
Hotel Net Operating Income
|
$ 7.8
|
|
$
11.0
|
|
$
15.0
|
This press release includes certain non-GAAP financial
measures as defined under Securities and Exchange Commission (SEC)
rules. These measures are not in accordance with, or an alternative
to, measures prepared in accordance with U.S. generally accepted
accounting principles, or GAAP, and may be different from non-GAAP
measures used by other companies. In addition, these non-GAAP
measures are not based on any comprehensive set of accounting rules
or principles. Non-GAAP measures have limitations in that they do
not reflect all of the amounts associated with the hotel's results
of operations determined in accordance with GAAP.
The Company has presented estimated hotel EBITDA and hotel
net operating income because it believes these measures provide
investors and analysts with an understanding of the hotel-level
operating performance. These non-GAAP measures do not represent
amounts available for management's discretionary use, because of
needed capital replacement or expansion, debt service obligations
or other commitments and uncertainties, nor are they indicative of
funds available to fund the Company's cash needs, including its
ability to make distributions. The Company's presentation of the
hotel's estimated EBITDA and net operating income should not be
considered as an alternative to net income (computed in accordance
with GAAP) as an indicator of the hotel's financial performance.
The table above is a reconciliation of the hotel's estimated EBITDA
and net operating income calculations to net income in accordance
with GAAP. Any differences are a result of rounding.
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SOURCE DiamondRock Hospitality Company