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We own twenty premium hotels and resorts in
North America. These hotels and resorts are
primarily categorized as upper upscale as defined by
Smith Travel Research and are generally located in
high barrier to entry markets with multiple demand
generators.
Our properties are concentrated
in five key gateway cities (New York City, Los
Angeles, Chicago, Boston and Atlanta) and in
destination resort locations (such as the U.S.
Virgin Islands and Vail, Colorado). We believe that
gateway cities and destination resorts will achieve
higher long-term growth because they are attractive
business and leisure destinations. We also believe
that these locations are better insulated from new
supply due to relatively high barriers to entry and
expensive construction costs.
We believe that
the higher quality lodging assets create more
dynamic cash flow growth and superior long-term
capital appreciation.
In addition, a core
tenet of our strategy is to leverage national hotel
brands. We strongly believe in the value of powerful
national brands because we believe that they are
able to produce incremental revenue and profits
compared to similar unbranded hotels. In particular,
we believe that branded hotels outperform unbranded
hotels in an economic downturn. Dominant national
hotel brands typically have very strong reservation
and reward systems and sales organizations, and all
of our hotels are operated under a brand owned by
one of the top three national brand companies
(Marriott, Starwood or Hilton) and all but two of
the hotels are managed by the brand company
directly. Generally, we are interested in owning
only those hotels that are operated under a
nationally recognized brand or acquiring hotels that
can be converted into a nationally branded hotel.
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DiamondRock Hospitality Company
6903 Rockledge Drive, Suite 800, Bethesda, Maryland
20817 Tel: (240) 744-1150
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