DiamondRock Hospitality Company (NYSE:DRH) Q2 2023 Earnings Conference Call August 3, 2023 5:00 PM ET

Company Participants

Briony Quinn - SVP & Treasurer

Mark Brugger - Co-Founder, President, CEO & Director

Jeff Donnelly - EVP & CFO

Troy Furbay - EVP & CIO

Justin Leonard - EVP, Asset Management & COO

Conference Call Participants

Duane Pfennigwerth - Evercore ISI

Anthony Powell - Barclays Bank

Floris Van Dijkum - Compass Point

Michael Bellisario - Robert W. Baird & Co.

Chris Darling - Green Street Advisors

Gregory Miller - Truist Securities

Smedes Rose - Citigroup

Operator

Thank you for standing by, and welcome to the DiamondRock Hospitality Company Second Quarter 2023 Earnings Conference Call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions].

I would now like to turn the conference over to your host, Ms. Briony Quinn, Senior Vice President and Treasurer of DiamondRock Hospitality. Please go ahead.

Briony Quinn

Thank you, Valerie. Good evening, everyone. Welcome to DiamondRock's Second Quarter 2023 Earnings Call and Webcast. Before we get started, let me remind everyone that many of our comments today are not historical facts and are considered to be forward-looking statements under federal securities laws.

As described in our filings with the SEC, these statements are subject to numerous risks and uncertainties that could cause future results to differ materially from those expressed in our comments today. In addition, on today's call, we will discuss certain non-GAAP financial information. A reconciliation of this information to the most directly comparable GAAP financial measure can be found in our earnings press release.

With that, I'd like to turn the call over to Mark Brugger, our President and Chief Executive Officer.

Mark Brugger

Thank you for joining us today for DiamondRock's second quarter earnings call. Global travel demand remained strong. TSA throughput in the quarter reached 99% of 2019 levels and hotel stays in the United States this year are expected to surpass annual pandemic record of RMB 1.3 billion rooms. DiamondRock has been a leader in the recovery and later, we'll discuss why we are well positioned to hold and expand our leasing sector in years to come.

Against the favorable industry backdrop, however, the slowing macroeconomic environment is weighing on the pace of recovery of business travel and the redistribution of leisure travel from the unfettered competition from cruise lines and international destination is impacting domestic, leisure-oriented properties. In our view, some of these adjustments are just momentary events, but they were a headwind in the second quarter and will remain a headwind until later this year.