Q1 2024 Diamondrock Hospitality Co Earnings Call Transcript
Key Points
- Leadership and organizational changes are expected to enhance decision-making and value creation.
- Strong group demand with first-quarter group sales production steady versus last year.
- Total revenues increased by 3.8% due to strong food and beverage performance.
- Significant increase in group pace year over year, with 85% of budgeted full-year group revenue already on the books.
- Successful recognition of three hotels by the Michelin Guide, highlighting the company's quality of service and offerings.
- RevPAR declined by 0.4% in the quarter compared to the prior year, indicating some softness in the leisure segment.
- Total expenses increased by over 6%, driven by higher group banquet volumes and associated costs.
- Luxury resorts experienced a 7.6% RevPAR decline, underperforming compared to lifestyle resorts.
- High interest rates and inflation are putting pressure on consumer spending, potentially affecting leisure travel.
- Loyalty redemptions at resorts were down significantly, impacting the ability to fill rooms through less profitable channels.
Good day, and thank you for standing by. Welcome to the DiamondRock Hospitality Company's first-quarter 2024 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Briony Quinn, Executive Vice President and Chief Financial Officer. Please go ahead.
Thank you, Michelle. Good morning, everyone. Welcome to DiamondRock's first-quarter 2024 earnings call and webcast. Joining me today are Jeff Donnelly, our Chief Executive Officer; and Justin Leonard, our President and Chief Operating Officer.
Before we begin, let me remind everyone that many of our comments today are not historical facts and are considered to be forward-looking statements under federal securities laws. As described in our filings with the SEC, these statements are subject to numerous risks and uncertainties that could cause future results to differ materially from what we discuss today.
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