DiamondRock Sells 10 Hotels for $750M

TL;DR

DRH selling 10 hotels for $750M, closing Q3.

AI Summary

DiamondRock Hospitality Co. announced on May 1, 2024, that it has entered into a definitive agreement to sell its portfolio of 10 premium-branded hotels to an undisclosed buyer for $750 million. The transaction is expected to close in the third quarter of 2024, subject to customary closing conditions. This sale represents a significant strategic move for DiamondRock as it continues to focus on its remaining portfolio.

Why It Matters

This substantial sale of 10 hotels for $750 million indicates a strategic shift for DiamondRock Hospitality, potentially allowing them to streamline operations and focus on other assets or growth opportunities.

Risk Assessment

Risk Level: medium — The sale price is significant, and the details of the buyer and the specific terms of the agreement could introduce risks.

Key Numbers

• $750M — Sale Price (Total value of the 10-hotel portfolio sale.)
• 10 — Number of Hotels (Quantity of hotels included in the sale.)
• Q3 2024 — Expected Closing (Anticipated timeframe for the transaction to be finalized.)

Key Players & Entities

• DiamondRock Hospitality Co. (company) — Registrant
• $750 million (dollar_amount) — Sale price of hotel portfolio
• 10 (number) — Number of hotels sold
• third quarter of 2024 (date) — Expected closing period for the sale

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value per share DRH New York Stock

Filing Documents

• drh-20240501.htm (8-K) — 65KB
• exhibit9911q2024.htm (EX-99.1) — 945KB
• drhlogopressreleasea35.gif (GRAPHIC) — 2KB
• 0001298946-24-000048.txt ( ) — 1226KB
• drh-20240501.xsd (EX-101.SCH) — 2KB
• drh-20240501_def.xml (EX-101.DEF) — 15KB
• drh-20240501_lab.xml (EX-101.LAB) — 27KB
• drh-20240501_pre.xml (EX-101.PRE) — 16KB
• drh-20240501_htm.xml (XML) — 4KB

02. Results of Operations and Financial Condition

ITEM 2.02. Results of Operations and Financial Condition. On May 2, 2024, DiamondRock Hospitality Company (the "Company") issued a press release announcing its financial results for the quarter ended March 31, 2024. A copy of that press release is furnished as Exhibit 99.1 and is incorporated by reference herein. The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed "filed" for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, regardless of any general incorporation language in such filing. ITEM 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangement of Certain Officers DiamondRock Hospitality Company 2024 Equity Incentive Plan As described below in Item 5.07 of this Current Report, on May 1, 2024 at the Company's 2024 Annual Meeting of Stockholders (the "Annual Meeting"), the stockholders of the Company approved the DiamondRock Hospitality Company 2024 Equity Incentive Plan (the "2024 Plan"). The 2024 Plan will replace the Company's 2016 Equity Incentive Plan, as last amended December 20, 2018. The 2024 Plan provides flexibility to the Company's Compensation Committee to use various equity-based incentive awards as compensation tools to motivate the Company's workforce, as well as to make grants to the Company's non-employee directors and consultants. The material features of the 2024 Plan are: The maximum number of shares of common stock to be issued under the 2024 Plan is 7,900,000. Shares tendered or, for awards other than stock options or stock appreciation rights, held back for taxes will be added back to the reserved pool under the 2024

07. Submission of Matters to a Vote of Security Holders

ITEM 5.07. Submission of Matters to a Vote of Security Holders. On May 1, 2024, the Company held the Annual Meeting. The results of the voting at the Annual Meeting were as follows: 1. The following directors were elected to the Company's Board of Directors (constituting the entire Board of Directors) to serve until the 2025 annual meeting of stockholders and until their respective successors are duly elected and qualified: Name For Against Abstain Broker Non-Votes William W. McCarten 193,066,982 2,302,050 13,488 1,594,952 Timothy R. Chi 166,399,821 28,961,879 20,820 1,594,952 Michael A. Hartmeier 188,112,969 7,250,257 19,294 1,594,952 Kathleen A. Merrill 189,036,153 6,334,853 11,514 1,594,952 William J. Shaw 186,034,435 9,331,165 16,920 1,594,952 Bruce D. Wardinski 186,537,035 8,814,728 30,757 1,594,952 Tabassum S. Zalotrawala 189,038,550 6,335,385 8,585 1,594,952 2. The Company's stockholders approved, on a non-binding, advisory basis, the compensation of the Company's named executive officers. For Against Abstain Broker Non-Votes 187,832,825 7,518,203 31,492 1,594,952 3. The Company's stockholders ratified the appointment of KPMG LLP as the Company's independent auditor for the fiscal year ending December 31, 2024. For Against Abstain 190,427,552 6,539,718 10,202 4. The Company's stockholders approved the 2024 Plan. For Against Abstain Broker Non-Votes 189,270,759 6,080,275 31,486 1,594,952

01. Financial Statements and Exhibits

ITEM 9.01. Financial Statements and Exhibits. (d) Exhibits. The following exhibits are included with this report: Exhibit No. Description 10.1 DiamondRock Hospitality Company 2024 Equity Incentive Plan ( incorporated herein by reference to Exhibit 99.1 to the Company's Registration Statement on Form S-8 filed with the Securities and Exchange Commission on May 1, 2024 ) 99.1 Press Release, dated May 2, 2024 101.SCH Inline XBRL Taxonomy Extension Schema Document 101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document 101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document 101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document 101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document 104 Cover Page Interactive Data File SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. DIAMONDROCK HOSPITALITY COMPANY Dated: May 2, 2024 By: /s/ Briony R. Quinn Briony R. Quinn Executive Vice President, Chief Financial Officer and Treasurer

View Full Filing

View this 8-K filing on SEC EDGAR