DiamondRock Hospitality Co. Files 2023 Annual Report on Form 10-K

TL;DR

<b>DiamondRock Hospitality Co. has filed its 2023 10-K report detailing financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

DiamondRock Hospitality Co (DRH) filed a Annual Report (10-K) with the SEC on February 28, 2024. DiamondRock Hospitality Co. filed its 10-K report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal business is real estate investment trusts (REITs). The filing includes financial data for the fiscal years 2023, 2022, and 2021. Key financial statement components such as common stock, preferred stock, and retained earnings are detailed for multiple fiscal years.

Why It Matters

For investors and stakeholders tracking DiamondRock Hospitality Co, this filing contains several important signals. This 10-K filing provides a comprehensive overview of DiamondRock Hospitality's financial health and strategic positioning for the past fiscal year, crucial for investors assessing its performance. The detailed financial data, including segment revenues and balance sheet items, allows stakeholders to analyze trends, profitability, and asset management over the last three fiscal years.

Risk Assessment

Risk Level: medium — DiamondRock Hospitality Co shows moderate risk based on this filing. The filing is a standard 10-K, which is a routine annual report. However, the real estate investment trust sector can be sensitive to economic downturns and interest rate changes, which are not detailed in this specific filing but are inherent risks to the industry.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-K to understand DiamondRock Hospitality's performance and outlook in the current economic environment.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period end date)
• 2024-02-28 — Filing Date (Date the 10-K was filed)
• 2023 — Fiscal Year (Primary year covered by the report)
• 2022 — Prior Fiscal Year (Comparative year)
• 2021 — Prior Fiscal Year (Comparative year)

Key Players & Entities

• DiamondRock Hospitality Co. (company) — Filer of the 10-K report
• 2023-12-31 (date) — Fiscal year end
• 2024-02-28 (date) — Filing date
• 6798 (industry_code) — Standard Industrial Classification for Real Estate Investment Trusts

FAQ

Industry Context

DiamondRock Hospitality Co. operates within the Real Estate Investment Trusts (REITs) sector, focusing on owning and managing hotel properties.

Regulatory Implications

As a publicly traded company in the US, DiamondRock Hospitality is subject to SEC regulations, including the requirement to file annual reports like the 10-K.

What Investors Should Do

1. Review the full 10-K filing for detailed financial statements and management discussion.
2. Analyze segment revenues and occupancy data for trends in hotel performance.
3. Assess the company's balance sheet and debt levels for financial stability.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-02-28: Filing Date — Date the 10-K was officially submitted to the SEC.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This is the primary document type filed, containing essential financial and operational details.)

REIT

Real Estate Investment Trust. A company that owns, operates, or finances income-generating real estate. (DiamondRock Hospitality operates as a REIT, making this classification central to understanding its business model.)

Year-Over-Year Comparison

This is the initial filing data provided, so a comparison to a previous filing is not possible with the given information.

Key Financial Figures

• $0.01 — ange on Which Registered Common Stock, $0.01 par value DRH New York Stock Exchange

Filing Documents

• drh-20231231.htm (10-K) — 2616KB
• drh_exhibit43x12312023.htm (EX-4.3) — 76KB
• drh_exhibit211x12312023.htm (EX-21.1) — 51KB
• drh_exhibit231x12312023.htm (EX-23.1) — 3KB
• drh_exhibit311x12312023.htm (EX-31.1) — 11KB
• drh_exhibit312x12312023.htm (EX-31.2) — 10KB
• drh_exhibit321x12312023.htm (EX-32.1) — 7KB
• drh_exhibit97x12312023.htm (EX-97) — 31KB
• drh-20231231_g1.jpg (GRAPHIC) — 42KB
• drh-20231231_g2.jpg (GRAPHIC) — 287KB
• drh-20231231_g3.gif (GRAPHIC) — 10KB
• 0001298946-24-000011.txt (&nbsp;) — 12386KB
• drh-20231231.xsd (EX-101.SCH) — 89KB
• drh-20231231_cal.xml (EX-101.CAL) — 90KB
• drh-20231231_def.xml (EX-101.DEF) — 473KB
• drh-20231231_lab.xml (EX-101.LAB) — 932KB
• drh-20231231_pre.xml (EX-101.PRE) — 613KB
• drh-20231231_htm.xml (XML) — 1669KB

Risk Factors

Item 1A. Risk Factors 14

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 35

Cybersecurity

Item 1C. Cybersecurity 35

Properties

Item 2. Properties 37

Legal Proceedings

Item 3. Legal Proceedings 43

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 43 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 44

Reserved

Item 6. Reserved 46

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 46

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 59

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 60

Changes in and Disagreements with Accountants on Accounting and Financial Disclosures

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosures 60

Controls and Procedures

Item 9A. Controls and Procedures 60

Other Information

Item 9B. Other Information 60

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 60 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 62

Executive Compensation

Item 11. Executive Compensation 62

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 62

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 62

Principal Account ant Fees and Services

Item 14. Principal Account ant Fees and Services 62 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 63

Form 10-K Summary

Item 16. Form 10-K Summary 65 -3- Table of Contents SPECIAL NOTE ABOUT FORWARD-LOOKING STATEMENTS Certain statements in this Annual Report on Form 10-K, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally are identified by the words "believes," "project," "expects," "anticipates," "estimates," "intends," "strategy," "plan," "may," "will," "would," "will be," "will continue," "will likely result," "strive," "endeavor," "mission," "goal," and similar expressions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Some of the risks and uncertainties that may cause our actual results, performance or achievements to differ materially from those expressed or implied by forward-looking statements include, among others, the following: negative developments in the economy, including, but not limited to elevated inflation and interest rates, job loss or growth trends, an increase in unemployment or a decrease in corporate earnings and investment; increased competition in the lodging industry and from alternative lodging channels or third party internet intermediaries in the markets in which we own properties; failure to effectively execute our long-term business strategy and successfully identify and complete acquisitions and dispositions; risks and uncertainties affecting hotel management, operations and renovations (including, without limitation, elevated inflation, construction delays, incr

Business

Item 1. Business Overview DiamondRock Hospitality Company is a lodging-focused Maryland corporation operating as a REIT for U.S. federal income tax purposes. As of December 31, 2023, we owned a portfolio of 36 premium hotels and resorts that contain 9,746 guest rooms located in 25 different markets in the United States. The markets that we target are those that we believe align with our strategic objectives, which include investing in assets in destination markets with constrained supply trends, those that provide geographic diversity relative to our existing portfolio, and those markets that are considered to have high growth potential. As an owner, rather than an operator, of lodging properties, we receive all of the operating profits or losses generated by our hotels after the payment of fees due to hotel managers and hotel brands, which are calculated based on the revenues and profitability of each hotel. Our strategy is to apply aggressive asset management, prudent financial strategy, and disciplined capital allocation to high quality lodging properties in North American urban and resort markets with superior growth prospects and high barriers-to-entry. Our goal is to deliver long-term stockholder returns that exceed those generated by our peers through a combination of dividends and enduring capital appreciation. Our primary business is to acquire, own, renovate and asset manage premium hotel properties in the United States. Our portfolio is concentrated in major urban markets and destination resort locations. All of our hotels are managed by a third party—either an independent operator or a brand operator, such as Marriott. We critically evaluate each of our hotels to ensure that we own a portfolio of hotels that conforms to our vision, supports our mission and corresponds with our strategy. On a regular basis, we analyze our portfolio to identify opportunities to invest capital in certain projects or market non-core assets for sale in order to in

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View this 10-K filing on SEC EDGAR