Q2 2024 Diamondrock Hospitality Co Earnings Call Transcript
Key Points
- Diamondrock Hospitality Co (DRH) exceeded expectations for Q2 2024, with comparable RevPAR growing 2.2% over last year.
- Total RevPAR increased by 4.5%, driven by a strategic mix shift towards Group business, which boosted out-of-room spend.
- Group revenue increased by 7.2% over last year, with banquet catering and AV revenue rising over 20%.
- The company successfully renewed its insurance program, reducing premium costs by 16% and lowering insurance expenses by 14.5% from 2023.
- Diamondrock Hospitality Co (DRH) repurchased 2.8 million shares at an average price of $8.36 per share, totaling approximately $23.5 million.
- Comparable hotel operating expenses increased by 4.5% from last year, driven by a 7% rise in total wages and benefits.
- The company expects a slight reduction in room RevPAR growth due to the focus on group and occupancy strategies.
- Out-of-room spending in the second half of the year is not expected to contribute as significantly to total RevPAR growth as it did in the first half.
- The transaction market remains challenging, with a significant drop-off in hospitality transactions and a large bid-ask spread between buyers and sellers.
- The company is cautious about its leverage, which may limit the extent of share repurchases and other capital allocation strategies.
Good day and thank you for standing by. Welcome to DiamondRock Hospitality Company second quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. After the speakers presentation, there will be a question-and-answer session. (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, Chief Financial Officer. Please go ahead.
Thank you, Justin. Good morning, everyone, and thank you for joining us. With me on the call today is 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
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
