EX-99.2 3 c07021exv99w2.htm EXHIBIT 99.2 Exhibit 99.2

Exhibit 99.2

Frenchman's Reef & Morning Star Marriott Beach ResortOctober 2010


 

Investment Highlights 2 Introducing a comprehensive $45 million plan to reinvent the guest experience at Frenchman's Reef & Morning Star Marriott Resort Key Attributes of DiamondRock's Plan:Projected IRR > 20%Marriott ContributionNew Resort Pool Destination Spa Upgraded GuestroomsSelf Generation of EnergyIncreased Energy EfficiencyOverall Enhancement of Guest Experience


 

Overview of the Resort 3


 

New Resort Pool With Elements For All Ages 4 Creation of Spa Pool featuring outdoor massage tables, Bali Beds, and in-pool water massage bubble beds New Adult Pool area featuring swim up bar, sun shelves and Bali Beds New Kids Pool and Play area Enhanced Sun Deck featuring Bali Beds, a new Wading Pool, and Waterfall Installation of Grand Staircase to deliver guests directly from Lobby to Pool Area


 

New Resort Pool Features 5 Bali Beds Fiber Optic Pool Lights Sun Shelves Infinity Edge Pool


 

Destination Spa Experience 6 The new destination spa experience will provide guests a serene environment to relax both mind and body and feature 12 treatment rooms, a new relaxation area and access to the private spa pool area


 

Guestroom Renovation 7 The Company has hired renowned interior design firm Leo A Daly to create a refreshed modern guestroom designGuestrooms will feature a calming natural color scheme, contemporary soft goods, improved air conditioning, new patio furniture, new floor tile and area carpeting, thematic art work, and modern window treatments and light fixturesGuest bathrooms will receive stylish barn doors, enhanced lighting, and new tile


 

The Company expects to achieve an IRR greater than 20%, driven by:Greater Revenue PotentialIncreased capture of higher-rated corporate and group businessResort enhancements provide ability to increase rateIncreased Operating MarginsHigher rated business has better flow-thruThe $15M energy investment reduces ongoing expenses Return on Investment 8 (CHART)


 

Safe Harbor Certain statements made during this presentation are forward- looking and are subject to risks and uncertainties. Many of these risks and uncertainties are discussed in the Company's filings with the Securities and Exchange Commission, all of which you should carefully review, as well as risks associated with the renovation and repositioning of the Resort, including the risks that the Company will not achieve its forecasted return on investment. The forward- looking statements made are based on our beliefs, assumptions and expectations of future performance, taking into account all information currently available to us. Actual results could differ materially from the forward-looking statements made during this presentation. When we use the words "believe," "expect," "forecast," "anticipate," "plan," "will," "intend" or other similar expressions, we are identifying forward-looking statements. The forward-looking statements made during this presentation are subject to the safe harbor of the Private Securities Litigation Reform Act of 1995. 9