BETHESDA, Md., Dec. 17, 2025 /PRNewswire/ -- DiamondRock Hospitality Company (the "Company") will report financial results for the fourth quarter 2025 after the market closes on Thursday, February 26, 2026. The Company will hold a conference call to discuss its fourth quarter financial results and business outlook on Friday, February 27, 2026, at 9:00 a.m. Eastern Time (ET). The conference call will be accessible by telephone and through the internet. Interested individuals are requested to register for th ...

Group 1 - The world economy remains volatile, yet most hotel REITs, including DiamondRock Hospitality REIT (DRH), are performing well [1] - DiamondRock Hospitality REIT has increased the midpoint of its adjusted EBITDA, indicating positive financial performance [1] Group 2 - The Investment Doctor emphasizes a portfolio should include a mix of dividend and growth stocks, focusing on high-quality small-cap ideas [1] - The investment group European Small Cap Ideas provides exclusive access to actionable research on European investment opportunities [1] - Features of the investment group include two model portfolios, weekly updates, educational content, and an active chat room for discussions [1]

***Common Dividends for 2025 Total $0.36 Per Share, a 12.5% Increase over 2024***BETHESDA, Md.,Dec. 3, 2025/PRNewswire/ --DiamondRock Hospitality Company (the "Company" or "DiamondRock") (Nasdaq:[DRH](#financial-modal)) announced that its Board of Directors has declared a fourth quarter dividend of $0.12 per common share, which includes the Company's regular quarterly dividend of $0.08 per common share, along with a stub dividend of $0.04 per common share. The dividend will be paid on January 14, 2026, to s ...

Core Viewpoint - DiamondRock Hospitality Company announced the redemption of all outstanding shares of its 8.250% Series A Cumulative Redeemable Preferred Stock on December 31, 2025, utilizing approximately $121.5 million in cash to fund the redemption price and accrued dividends [1][2]. Group 1: Redemption Details - The Company will redeem 4,760,000 shares at a price of $25.00 per share, plus accrued and unpaid dividends [1]. - The quarterly dividend of $0.515625 per share on the Series A Preferred Stock is declared and payable on December 31, 2025, to shareholders of record as of December 19, 2025 [2]. - After the redemption date, the Series A Preferred Stock will no longer be outstanding, and dividends will cease to accrue [3]. Group 2: Company Overview - DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that owns a portfolio of 36 premium quality hotels and resorts, totaling approximately 9,600 rooms [4]. - The Company's portfolio is strategically positioned in leisure destinations and top gateway markets, operating under leading global brand families and independent boutique hotels [4].

Core Points - DiamondRock Hospitality Company will voluntarily transfer its Class A Common Stock listing from NYSE to Nasdaq, with trading expected to begin on December 1, 2025, under the existing symbol "DRH" [1] - The partnership with Nasdaq is anticipated to provide cost-effective exchange listing, trading advisory services, and enhanced marketing opportunities, supporting the company's strategic objectives [2] - DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that owns a diversified portfolio of 36 premium hotels and resorts, totaling approximately 9,600 rooms [4] Company Overview - DiamondRock Hospitality Company focuses on premium accommodations across the United States, strategically positioning its portfolio to include both global brand hotels and independent boutique hotels [4] - The company has been operational for over 20 years and has expressed appreciation for its partnership with NYSE during this period [2][3]

Company Overview - As of September 30, 2025, DiamondRock Hospitality Company owned a portfolio of 36 premium hotels and resorts with a total of 9,595 guest rooms located in 26 different markets in the United States[81]. Revenue Performance - Room revenue accounted for approximately 65% of total revenues for the nine months ended September 30, 2025[90]. - Total revenues for the three months ended September 30, 2025, were $285.4 million, a slight increase of 0.1% compared to $285.1 million in the same period of 2024[100]. - Total revenues for the nine months ended September 30, 2025, were $846.0 million, a decrease of $4.9 million or 0.6% from $850.8 million in 2024[110]. - Rooms revenue decreased by $3.4 million, primarily due to a $5.9 million decrease from the 2025 Disposition, partially offset by a $2.9 million increase from the 2024 Acquisition[101]. - Food and beverage revenues increased by $1.6 million for the three months ended September 30, 2025, primarily due to higher banquet and catering revenues[104]. - Food and beverage revenues increased by $0.8 million, while other revenues rose by $3.3 million, primarily due to new resort fees and increased spa and parking revenue[114]. Financial Metrics - The company employs key performance indicators such as Occupancy percentage, Average Daily Rate (ADR), and Rooms Revenue per Available Room (RevPAR) to evaluate financial performance[89]. - The company’s financial performance is also measured using metrics such as EBITDA, Adjusted EBITDA, Funds From Operations (FFO), and Adjusted FFO[92]. - RevPAR is calculated as the product of ADR and occupancy percentage, serving as a critical statistic for monitoring hotel performance[90]. - EBITDA for the three months ended September 30, 2025, was $68.558 million, while Adjusted EBITDA was $79.084 million[154]. - Hotel Adjusted EBITDA for the nine months ended September 30, 2025, was $240.192 million, reflecting a slight decrease from $243.161 million in the same period of 2024[154]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $225.651 million, compared to $228.229 million in the same period of 2024[154]. - FFO for the nine months ended September 30, 2025, is calculated by excluding gains or losses from sales of properties and impairment losses, plus real estate-related depreciation and amortization[150]. Operating Performance - Occupancy rate for the three months ended September 30, 2025, was 76.2%, unchanged from the same period in 2024[103]. - Occupancy rate for the nine months ended September 30, 2025, was 73.2%, a decrease of 0.5% compared to 73.7% in 2024[113]. - Average Daily Rate (ADR) increased by 1.2% to $284.93 in 2025 from $281.47 in 2024[113]. - Revenue per Available Room (RevPAR) rose by 0.6% to $208.54 in 2025, compared to $207.36 in 2024[113]. - The weighted average RevPAR for the properties was $208.54, reflecting a 0.6% increase from the previous year[100]. Expenses and Debt - Total hotel operating expenses decreased by $0.9 million to $203.6 million for the three months ended September 30, 2025[105]. - The company reported a 2.9% decrease in rooms operating expenses for the three months ended September 30, 2025, totaling $46.5 million[105]. - Interest expense increased by $0.1 million to $17.1 million for the three months ended September 30, 2025, primarily due to an increase in unsecured term loans[108]. - Interest expense decreased by $2.3 million to $47.1 million in 2025, primarily due to mortgage debt repayments[119]. - As of September 30, 2025, the company had $1.1 billion of outstanding debt with a weighted average interest rate of 5.31%[125]. - The outstanding debt as of September 30, 2025, was $1.1 billion, all of which had a variable interest rate, with sensitivity to changes in one-month Secured Overnight Financing Rate (SOFR)[164]. Capital Management - The company aims to deliver long-term stockholder returns that exceed those generated by peers through dividends and capital appreciation[84]. - The company is focused on aggressive asset management and disciplined capital allocation in high-quality lodging properties[84]. - The company regularly assesses the availability and affordability of capital to maximize stockholder value and minimize enterprise risk[86]. - The company repurchased 4,597,942 shares of common stock at an average price of $7.71 per share for a total of $35.5 million during the nine months ended September 30, 2025[130]. - The company had $145.3 million of unrestricted cash and $50.1 million of restricted cash as of September 30, 2025[135]. - As of September 30, 2025, the company has set aside $50.0 million for capital projects in property improvement reserves[142]. - The company invested approximately $60.9 million on capital improvements at its hotels during the nine months ended September 30, 2025, and expects to spend between $85.0 to $90.0 million on capital improvements in 2025[143]. Risks and Challenges - The company faces risks including elevated inflation, interest rates, and increased competition in the lodging industry[82]. - The company continues to monitor macroeconomic factors that may impact leisure and international travel to the United States[93]. - Inflation has moderated but remains above the Federal Reserve's long-term target, impacting the company's ability to adjust room rates and affecting expenses[161]. - Management believes that actual results could differ materially from estimates due to uncertainties in accounting policies, particularly regarding impairment of long-lived assets[159]. - The company expects some seasonality in its business, with higher revenues varying by property location and customer base[163]. Renovations and Improvements - The company completed significant renovations at multiple hotels, including the Hilton Garden Inn New York and Kimpton Hotel Palomar Phoenix, enhancing guest experiences[149]. - The company’s capital expenditures include costs for replacing and repairing furniture, fixtures, and equipment at its hotels, calculated as a percentage of hotel revenues[142]. Impairment and Losses - The company reported impairment losses of $1.076 million for the three months ended September 30, 2024, and $1.596 million in 2025, with the same figures for the nine months[157]. - The company reported a loss on debt extinguishment of $5.850 million for the three months ended September 30, 2024, with no such loss reported in 2025[157]. Interest Rate Management - The company executed an interest rate swap for a notional amount of $75 million in August 2025, effective January 2, 2026, and an additional swap for $50 million in October 2025, effective January 4, 2027[164].

Financial Data and Key Metrics Changes - Corporate adjusted EBITDA for Q3 2025 was $79.1 million, and adjusted FFO per share was $0.29, both exceeding expectations [2] - Free cash flow per share for the trailing 12 months increased approximately 4% to $0.66 per share [3] - Comparable RevPAR declined 0.3%, which was better than the expected low single-digit decline [3] - Total hotel operating expenses increased by 1.6%, resulting in only a 3 basis point EBITDA margin contraction [5] Business Line Data and Key Metrics Changes - Business transient revenue grew almost 2%, while leisure transient revenue declined 1.5% and group room revenue declined 3.5% [3] - Out-of-room revenues increased by 5.1%, leading to total RevPAR growth of 1.5% [4] - Food and beverage revenues increased by 4%, with banquets and catering up almost 8% [4] - EBITDA margins for resorts expanded by over 150 basis points despite a 2.5% decline in RevPAR [7] Market Data and Key Metrics Changes - Urban portfolio achieved RevPAR growth of 0.6%, while total RevPAR growth was 2.1% [5] - Resort RevPAR declined 2.5%, but total RevPAR increased 0.4% due to a 4% growth in out-of-room revenues [6] - Group room revenues across the portfolio declined 3.5%, but the group revenue pace is up in the mid to high single digits for 2026 [8] Company Strategy and Development Direction - The company focuses on driving outsized free cash flow per share, which historically results in outsized total shareholder returns [12][13] - The CapEx strategy has been to spend 7-9% of revenues, compared to peers' 10.5%, resulting in significant capital preservation [15][16] - The company is actively underwriting acquisition opportunities, primarily targeting group-oriented hotels and urban select service hotels [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the lodging industry's trajectory, citing upcoming events like the FIFA World Cup as potential demand drivers [26] - The federal government shutdown has created uncertainty regarding short-term group pickup and transient guest arrivals [24] - The company raised the midpoint of its adjusted EBITDA guidance by $6 million to $287-$295 million for 2025 [11] Other Important Information - The company has successfully refinanced its senior unsecured credit facility, eliminating secured debt and improving financial flexibility [9] - The company repurchased 1.5 million common shares at an implied cap rate of approximately 9.7% during the year [10] - The company expects to end the year with over $150 million in cash on hand [10] Q&A Session Summary Question: How much of the expense control is driven by headcount reduction? - Management clarified that the focus is on productivity improvements rather than headcount reduction, with efforts to increase efficiency across the portfolio [29] Question: What are the options for recent or upcoming franchise expirations? - Management discussed various options, including potential upbranding or remaining with current brands, depending on what drives the best return [30] Question: What projects are on the docket for next year? - Management indicated that there are ongoing projects, but no significant disruptions are expected in 2026 [37] Question: How will the company approach potential asset dispositions? - Management stated that they are considering a mix of opportunistic asset sales and older properties that may not fit future strategies [40] Question: What is the outlook for labor costs in 2026? - Management anticipates that labor costs may not see the same efficiency gains as in 2025, projecting a growth rate of around 2.5-3% [43] Question: How is the company positioning for the FIFA World Cup? - Management is cautiously optimistic and is monitoring team matchups to gauge potential demand [45] Question: What is the expected impact of capital recycling on earnings? - Management aims to ensure that capital recycling is accretive to earnings, focusing on maximizing shareholder value [49]

Core Insights - DiamondRock Hospitality (DRH) reported revenue of $285.38 million for Q3 2025, reflecting a year-over-year increase of 0.1% and a surprise of +0.72% over the Zacks Consensus Estimate of $283.34 million [1] - The company achieved an EPS of $0.29, compared to $0.11 a year ago, with a surprise of +16% over the consensus estimate of $0.25 [1] Revenue Breakdown - Other Revenues: $28.88 million, exceeding the average estimate of $27.01 million by three analysts, representing a year-over-year increase of +7.5% [4] - Food and Beverage Revenues: $67.42 million, slightly below the average estimate of $67.69 million, with a year-over-year change of +2.5% [4] - Room Revenues: $189.09 million, compared to the average estimate of $190.01 million, showing a year-over-year decline of -1.8% [4] Stock Performance - DiamondRock Hospitality shares have returned +6.2% over the past month, outperforming the Zacks S&P 500 composite's +1.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - DiamondRock Hospitality (DRH) reported quarterly funds from operations (FFO) of $0.29 per share, exceeding the Zacks Consensus Estimate of $0.25 per share, and up from $0.26 per share a year ago [1][2] Financial Performance - The quarterly FFO surprise was +16.00%, and the company has surpassed consensus FFO estimates in all four of the last quarters [2] - Revenues for the quarter ended September 2025 were $285.38 million, surpassing the Zacks Consensus Estimate by 0.72%, and slightly up from $285.13 million year-over-year [3] Market Performance - DiamondRock Hospitality shares have declined approximately 9.4% since the beginning of the year, while the S&P 500 has gained 15.6% [4] - The current consensus FFO estimate for the upcoming quarter is $0.24 on revenues of $278.8 million, and for the current fiscal year, it is $1.03 on revenues of $1.12 billion [8] Industry Outlook - The REIT and Equity Trust - Other industry is currently in the top 30% of over 250 Zacks industries, indicating a favorable outlook [9]

Financial Performance - Net income attributable to common stockholders was $20.1 million, or $0.10 per diluted share, a decrease of 16.3% compared to Q3 2024[5] - Total revenues for Q3 2025 were $285.4 million, an increase of 1.5% compared to Q3 2024[9] - Net income for the three months ended September 30, 2025, was $22,638,000, compared to $26,557,000 for the same period in 2024, reflecting a decrease of approximately 14.4%[43] - Total revenues for the three months ended September 30, 2025, were $285.384 million, slightly up from $285.129 million in the same period of 2024[27] - Total revenues for the year to date 2025 is $842.88 million, with an adjusted EBITDA of $239.86 million[60] - The total revenues for the year to date 2025 show a significant increase compared to the previous year, indicating positive market trends[60] Adjusted EBITDA - Adjusted EBITDA for Q3 2025 was $79.1 million, an increase of 2.7% compared to Q3 2024[5] - Adjusted EBITDA for the nine months ended September 30, 2025, was $225,651,000, slightly down from $228,229,000 in 2024, indicating a decrease of about 1.1%[43] - Hotel Adjusted EBITDA for the three months ended September 30, 2025, was $83,168,000, compared to $82,259,000 in 2024, showing an increase of approximately 1.1%[43] - Total adjusted EBITDA for the comparable total in 2025 is $240.19 million, reflecting a strong performance across the portfolio[60] Shareholder Returns - The company declared a quarterly cash dividend of $0.08 per share, paid on October 14, 2025[14] - The company repurchased 4.8 million shares of common stock year-to-date at an average price of $7.72 per share, totaling approximately $37.1 million[5] Debt and Financial Flexibility - The company successfully refinanced its senior unsecured credit facility to $1.5 billion, enhancing its balance sheet flexibility[10] - The company has no secured debt remaining after repaying mortgage loans for Hotel Clio and Westin Boston Seaport District[11] - The company reported a total debt of $1,100,000 as of September 30, 2025, with a net debt to EBITDA ratio of 3.3x[52] - The weighted-average interest rate on total debt was 5.3% as of September 30, 2025[52] Guidance and Projections - Full year 2025 guidance for Adjusted EBITDA is set at $287 million to $295 million, with an increase of $6.0 million at the midpoint compared to previous guidance[17] - Full year 2025 guidance for net income is projected between $88,433,000 and $97,433,000[44] - The company expects to invest $85.0 to $90.0 million in capital improvements in 2025, a reduction of $5.0 million from prior expectations[10] Operational Metrics - Comparable RevPAR was $214.21, a decrease of 0.3% compared to Q3 2024, while Comparable Total RevPAR increased by 1.5% to $323.29[5] - Comparable total occupancy rate for Q3 2025 was 76.2%, unchanged from Q3 2024[53] - Total RevPAR for comparable hotels decreased by 0.4% to $281.05 in Q3 2025 compared to Q3 2024[53] - The total number of comparable rooms across the portfolio was 9,595[53] Asset and Equity Position - Total assets as of September 30, 2025, were $3.146 billion, a decrease from $3.172 billion as of December 31, 2024[25] - The company’s total stockholders' equity decreased to $1.568 billion as of September 30, 2025, from $1.590 billion as of December 31, 2024[25] - The company’s cash and cash equivalents increased to $145.336 million as of September 30, 2025, up from $81.381 million as of December 31, 2024[25] Hotel Performance - The Chicago Marriott Downtown reported a RevPAR increase of 5.8% to $330.22 in Q3 2025[53] - The Atlanta Marriott in Alpharetta saw a RevPAR increase of 10.0% to $153.08, with occupancy rising to 68.3%[53] - The Bourbon Orleans Hotel experienced a significant RevPAR decline of 14.0% to $177.09, with occupancy dropping to 61.4%[53] - The Embassy Suites by Hilton Bethesda reported a RevPAR decrease of 8.9% to $132.20, with occupancy at 69.6%[53] - The Salt Lake City Marriott Downtown at City Creek achieved a RevPAR increase of 17.8% to $197.87, with occupancy at 70.7%[53]