Jeffrey Donnelly, CEO of DiamondRock Hospitality Company (NYSE: DRH), sat down for a video interview at Nareit's REITweek: 2024 Investor Conference, held in New York June 3-6.
Donnelly emphasized two primary factors influencing the sector in the coming months: labor costs and demographic shifts. He noted that while labor costs have started stabilizing as staffing levels return to normal, demographic changes present a promising long-term opportunity for the lodging industry.
Looking ahead to the second half of 2024 and into 2025, Donnelly highlighted robust growth prospects for DiamondRock, in particular citing a 20% year-over-year increase in group bookings for the latter half of this year. He said he anticipates significant returns from capital investments made across the portfolio through 2025, underscoring their commitment to enhancing shareholder value.
Donnelly also spotlighted a strategic initiative in Sedona, Arizona, where DiamondRock is renovating two adjacent properties with a significant disparity in room rates. By bridging this gap through renovations, he expects these enhancements to be a major driver of shareholder value in the years ahead.