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].

DiamondRock Hospitality Company (NYSE:DRH) Q3 2025 Earnings Call November 07, 2025 09:00 AM ET Speaker0Thank you for standing by. Welcome to the DiamondRock Hospitality Company Third Quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there'll be a question-and-answer session. To ask a question during the session, you'll need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. ...

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]

DiamondRock Hospitality (DRH) came out with quarterly funds from operations (FFO) of $0.29 per share, beating the Zacks Consensus Estimate of $0.25 per share. This compares to FFO of $0.26 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of +16.00%. A quarter ago, it was expected that this hotel and resort real estate investment trust would post FFO of $0.33 per share when it actually produced FFO of $0.35, delivering a surprise of +6. ...

COMPANY CONTACTS Dori Kesten Capital Markets (617) 835-8366 DIAMONDROCK HOSPITALITY COMPANY REPORTS THIRD QUARTER 2025 RESULTS Raises Midpoint of 2025 Adjusted EBITDA and Adjusted FFO Guidance Repurchased 4.8 Million Common Shares Year To Date BETHESDA, Maryland, Thursday, November 6, 2025 – DiamondRock Hospitality Company (NYSE: DRH) (the "Company"), a lodging real estate investment trust that owns a portfolio of 36 premium hotels and resorts in the United States, today announced results of operations for ...

Accessibility StatementSkip Navigation Raises Midpoint of 2025 Adjusted EBITDA and Adjusted FFO Guidance Repurchased 4.8 Million Common Shares Year To Date BETHESDA, Md., Nov. 6, 2025 /PRNewswire/ -- DiamondRock Hospitality Company (NYSE: DRH) (the "Company"), a lodging real estate investment trust that owns a portfolio of 36 premium hotels and resorts in the United States, today announced results of operations for the quarter ended September 30, 2025. HIGHLIGHTS "We are pleased to report that third quarter ...

Company Overview - DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that owns a portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets [4] - The Company currently owns 36 premium quality hotels and resorts with approximately 9,600 rooms [4] - The portfolio includes properties operated under leading global brand families as well as independent boutique hotels in the lifestyle segment [4] Upcoming Financial Results - The Company will report financial results for the third quarter of 2025 after the market closes on Thursday, November 6, 2025 [1] - A conference call to discuss the third quarter financial results and business outlook is scheduled for Friday, November 7, 2025, at 9:00 a.m. Eastern Time (ET) [1] Conference Call Details - The conference call will be accessible by telephone and through the internet, with registration required for participation [2] - A replay of the call will be available two hours after the live call for a limited time on the Company's website [3]

Group 1 - The article discusses the preferred shares of DiamondRock Hospitality (NYSE: DRH.PR.A) and highlights a significant drawdown during market turmoil earlier in the year [1] - Binary Tree Analytics (BTA) aims to provide transparency and analytics in capital markets, focusing on closed-end funds (CEFs), exchange-traded funds (ETFs), and special situations to achieve high annualized returns with low volatility [1] Group 2 - The article does not provide any specific financial metrics or performance data related to DiamondRock Hospitality or its preferred shares [2][3]

Core Viewpoint - DiamondRock Hospitality (DRH) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Company Performance and Outlook - The upgrade reflects an improvement in DiamondRock Hospitality's underlying business, suggesting that investors may respond positively by driving the stock price higher [5]. - For the fiscal year ending December 2025, the company is expected to earn $1.00 per share, with a 0.2% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7]. - The upgrade to Zacks Rank 2 places DiamondRock Hospitality in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for DiamondRock Hospitality Company as of June 30, 2025, including balance sheets, statements of operations, equity, and cash flows, with detailed notes on accounting policies and activities [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets decreased to **$3.06 billion** from **$3.17 billion**, primarily due to a hotel sale, while total liabilities decreased to **$1.48 billion** from **$1.57 billion**, mainly from debt repayments, with total equity remaining stable at **$1.58 billion** Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$3,061,315** | **$3,172,251** | | Cash and cash equivalents | $52,402 | $81,381 | | Property and equipment, net | $2,615,010 | $2,631,221 | | Assets held for sale | $0 | $93,400 | | **Total Liabilities** | **$1,476,817** | **$1,573,319** | | Debt, net | $1,020,320 | $1,095,294 | | **Total Equity** | **$1,584,498** | **$1,598,932** | [Consolidated Statements of Operations and Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) For Q2 2025, total revenues slightly decreased to **$305.7 million**, but net income attributable to common stockholders significantly increased to **$38.4 million** (**$0.18** per diluted share) from **$22.1 million** (**$0.10** per diluted share) in Q2 2024, driven by reduced corporate expenses Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $305,720 | $309,280 | $560,573 | $565,703 | | Total Operating Expenses | $249,586 | $268,274 | $479,672 | $502,252 | | Net Income | $41,039 | $24,631 | $52,954 | $32,989 | | Net Income Attributable to Common Stockholders | $38,381 | $22,076 | $47,784 | $27,950 | | Diluted EPS | $0.18 | $0.10 | $0.23 | $0.13 | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, operating activities provided **$101.2 million**, investing activities provided **$47.8 million** from a hotel sale, and financing activities used **$174.2 million** for debt repayments and dividends, resulting in a total cash decrease to **$103.6 million** Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $101,174 | $86,953 | | Net cash provided by (used in) investing activities | $47,753 | $(35,778) | | Net cash used in financing activities | $(174,159) | $(47,922) | | **Net (decrease) increase in cash** | **$(25,232)** | **$3,253** | [Notes to the Consolidated Financial Statements](index=14&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes detail the sale of the Westin Washington, D.C. City Center for **$92.0 million**, a reduction in total debt to **$1.02 billion**, significant share repurchase activity, and the company's operation as a single 'hotel ownership' segment - As of June 30, 2025, the company owned a portfolio of **36 premium hotels** with **9,595 guest rooms**[24](index=24&type=chunk) - On February 19, 2025, the company sold the Westin Washington, D.C. City Center for **$92.0 million**, receiving net proceeds of approximately **$89.0 million**[32](index=32&type=chunk) - Subsequent to the quarter end, on July 22, 2025, the company amended its credit facility, increasing its size from **$1.2 billion to $1.5 billion** and extending its maturity schedule[39](index=39&type=chunk) - During the first six months of 2025, the company repurchased **3.1 million shares** of common stock for **$23.7 million** under its share repurchase program[55](index=55&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, strategic direction, and liquidity, highlighting a slight revenue decrease, flat RevPAR, improved net income due to lower corporate expenses, a conservative capital structure, and recent credit facility amendment and share repurchase activities [Results of Operations](index=30&type=section&id=Results%20of%20Operations) For Q2 2025, total revenues decreased by **1.2%** to **$305.7 million** due to a **2.6%** decline in rooms revenue, while RevPAR was nearly flat with a **0.1%** increase, primarily driven by a significant **$19.1 million** reduction in corporate expenses compared to Q2 2024 Q2 2025 vs Q2 2024 Revenue Breakdown (in thousands) | Revenue Type | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Rooms | $198,237 | $203,487 | $(5,250) | (2.6)% | | Food and beverage | $78,828 | $78,111 | $717 | 0.9% | | Other | $28,655 | $27,682 | $973 | 3.5% | | **Total revenues** | **$305,720** | **$309,280** | **$(3,560)** | **(1.2)%** | Key Hotel Operating Statistics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Occupancy % | 76.7% | 77.5% | (0.8)% | | ADR | $295.78 | $292.59 | 1.1% | | RevPAR | $226.95 | $226.83 | 0.1% | - Corporate expenses decreased by **$19.1 million** in Q2 2025 compared to Q2 2024, primarily due to severance expenses recognized in the 2024 period related to leadership changes[110](index=110&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a conservative capital structure with **$400.0 million** borrowing capacity as of June 30, 2025, and subsequently upsized its credit facility to **$1.5 billion** to extend maturities and repay remaining 2025 mortgage debt, aiming for a fully unencumbered portfolio while actively repurchasing shares - The company amended its credit facility on July 22, 2025, increasing its size to **$1.5 billion** and extending maturities, with proceeds used to repay remaining 2025 mortgage loans, resulting in a fully unencumbered portfolio[130](index=130&type=chunk)[137](index=137&type=chunk) - Under its **$200 million** share repurchase program, the company bought back **3.1 million shares** for **$23.7 million** in the first six months of 2025, with **$146.8 million** of capacity remaining as of August 7, 2025[133](index=133&type=chunk) [Non-GAAP Financial Measures](index=38&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP measures like EBITDA and FFO, reporting Adjusted EBITDA of **$90.5 million** for Q2 2025 (down from $95.0 million) and Adjusted FFO of **$72.3 million** (down from $75.0 million), noting a restatement of prior periods for comparability after excluding share-based compensation from January 1, 2025 Reconciliation to Adjusted EBITDA (in thousands) | Metric | Q2 2025 | Q2 2024 (As Adjusted) | | :--- | :--- | :--- | | Net income | $41,039 | $24,631 | | EBITDA/EBITDAre | $85,054 | $70,074 | | **Adjusted EBITDA** | **$90,457** | **$95,038** | Reconciliation to Adjusted FFO (in thousands) | Metric | Q2 2025 | Q2 2024 (As Adjusted) | | :--- | :--- | :--- | | Net income | $41,039 | $24,631 | | FFO | $69,195 | $52,504 | | **Adjusted FFO available to common stock and unit holders** | **$72,330** | **$75,014** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate fluctuations, with **$0.8 billion** of its **$1.0 billion** total debt being variable-rate, mitigated by interest rate swaps on **$325 million**, where a **100 basis point** change on unhedged debt would impact annual interest expense by **$4.8 million** - The company's primary market risk is interest rate risk, with **$0.8 billion** of its **$1.0 billion** total debt being variable-rate as of June 30, 2025[175](index=175&type=chunk) - The company uses interest rate swaps to effectively fix the rate on **$325 million** of its variable-rate debt[175](index=175&type=chunk) - A **100 basis point** fluctuation in interest rates on unhedged variable rate debt would impact annual interest expense by **$4.8 million**[175](index=175&type=chunk) [Item 4. Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting identified during the quarter - Management concluded that disclosure controls and procedures were effective as of the end of the period covered by the report[176](index=176&type=chunk) - No changes in internal control over financial reporting that materially affected, or are reasonably likely to materially affect, the company's internal controls were identified during the most recent fiscal quarter[177](index=177&type=chunk) [PART II. OTHER INFORMATION](index=47&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal proceedings but does not anticipate any material adverse impact on its financial condition or results of operations - The company is subject to routine litigation but does not expect any material adverse impact on its financial condition[179](index=179&type=chunk) [Item 1A. Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024, or the Q1 2025 Form 10-Q were reported - No material changes to risk factors were reported for the period[180](index=180&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's repurchase of **1,684,299 shares** of common stock during Q2 2025 as part of its **$200 million** share repurchase program Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 639,949 | $7.26 | | May 2025 | 86,960 | $7.48 | | June 2025 | 957,390 | $7.60 | - The share repurchase program was approved on May 1, 2024, for up to **$200.0 million** and expires on May 1, 2026[181](index=181&type=chunk) [Item 5. Other Information](index=47&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, terminated, or modified Rule 10b5-1 trading arrangements during Q2 2025, and the company changed its transfer agent to Broadridge Financial Solutions, Inc. on July 25, 2025 - On July 25, 2025, the company changed its transfer agent to Broadridge Financial Solutions, Inc.[184](index=184&type=chunk) [Item 6. Exhibits](index=48&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including the Seventh Amended and Restated Credit Agreement, CEO and CFO certifications, and XBRL data files