Financial Data and Key Metrics Changes - Comparable RevPAR increased by 2% over 2024, while total RevPAR increased by 1.6% [4] - Hotel adjusted EBITDA margins increased by 54 basis points, with hotel adjusted EBITDA in Q1 at $61.3 million, reflecting a 2.2% growth over 2024 [9] - Adjusted FFO was $0.19 per share, an increase of $0.01 or 5.6% over 2024 [10] - Free cash flow per share increased by 10% to $0.63 per share over the prior four-quarter period [10] Business Line Data and Key Metrics Changes - Urban portfolio RevPAR grew by 5%, driven by group and business transient segments, with room revenues up 3.1% in January, 2.6% in February, and 5.4% in March [4] - Food and beverage revenue at urban hotels declined by 3.3% year over year, but excluding the Chicago Marriott, it increased by 5.5% [5] - Resort portfolio comparable RevPAR declined by 2.1% over 2024, with total revenues slightly up in January and February but down 4.3% in March [6][7] - Group room revenues increased by 10.4% over last year on a 5.2% increase in room nights [8] Market Data and Key Metrics Changes - Florida assets saw mid-single-digit revenue declines, with RevPAR down 5.9% and total RevPAR down 4% [7] - Outside of Florida, RevPAR increased by 1.7% and total RevPAR increased by 2.9% [7] - Preliminary April RevPAR showed better than 2% growth [30] Company Strategy and Development Direction - The company is focused on adding groups to resorts to preserve pricing and improve profitability [8] - Plans to refinance maturing loans through a combination of corporate debt issuance and recasting the corporate credit facility [12] - The company is pursuing opportunities to dispose of non-strategic assets while recycling proceeds into attractive investment alternatives [17] Management's Comments on Operating Environment and Future Outlook - Management noted that the unsettled macroeconomic environment has led to softer closure rates for group bookings [9] - The long-term secular drivers for US resorts remain strong, but near-term performance could be soft [20] - The company expects economic anxiety to settle as 2025 progresses, with a focus on increasing earnings per share [27] - Revised full-year 2025 RevPAR outlook to a range of -1% to +1% growth, reflecting a cautious stance on group bookings [23] Other Important Information - The company intends to continue paying a quarterly dividend of $0.08 per share in 2025 [10] - Share repurchases totaled approximately $16 million or 2.1 million shares at an average price of $7.85 [11] Q&A Session Summary Question: Preliminary portfolio-wide RevPAR for April - Preliminary April is showing a little better than 2% growth [30] Question: Renovation project costs and tariffs - Costs depend on the type of renovations; efforts are being made to secure materials before tariffs are reinstated [31][32] Question: Group conversion profile and average group size - The average hotel is about 200 to 250 rooms, with groups running the gamut from associations to corporate [36][37] Question: Group pacing in specific markets - Denver and Salt Lake are showing significant strength in group bookings [41] Question: Holes in group bookings for the rest of the year - The biggest holes are due to difficult comps in Chicago and Boston [48] Question: Average booking window for groups - Smaller groups tend to book 4 to 6 months out, while larger groups book 8 to 12 months out [53] Question: Competitive supply growth and developer behavior - Approximately 40% to 50% of markets have little to no supply growth due to anti-development stances [82]

Core Insights - DiamondRock Hospitality (DRH) reported revenue of $254.85 million for the quarter ended March 2025, reflecting a decrease of 0.6% year-over-year and a revenue surprise of -2.01% compared to the Zacks Consensus Estimate of $260.08 million [1] - The company's EPS was $0.19, significantly higher than the $0.03 reported in the same quarter last year, resulting in an EPS surprise of +11.76% against the consensus estimate of $0.17 [1] Revenue Breakdown - Other Revenues amounted to $24.89 million, slightly exceeding the average estimate of $24.80 million, marking a year-over-year increase of +1.5% [4] - Food and Beverage Revenues were reported at $66.84 million, below the average estimate of $69.01 million, indicating a year-over-year decline of -2.3% [4] - Room Revenues totaled $163.12 million, also falling short of the average estimate of $165.03 million, with a minimal year-over-year decrease of -0.2% [4] Stock Performance - Over the past month, shares of DiamondRock Hospitality have declined by -6.9%, contrasting with the Zacks S&P 500 composite's decrease of -0.7% [3] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - DiamondRock Hospitality (DRH) reported quarterly funds from operations (FFO) of $0.19 per share, exceeding the Zacks Consensus Estimate of $0.17 per share, and up from $0.17 per share a year ago [1][2]. Financial Performance - The quarterly FFO surprise was 11.76%, and the company had a previous quarter surprise of 14.29% with an actual FFO of $0.24 per share against an expected $0.21 [2]. - Revenues for the quarter ended March 2025 were $254.85 million, missing the Zacks Consensus Estimate by 2.01%, and down from $256.42 million year-over-year [3]. - Over the last four quarters, the company has surpassed consensus FFO estimates three times and revenue estimates two times [2][3]. Stock Performance and Outlook - DiamondRock Hospitality shares have declined approximately 18.7% since the beginning of the year, compared to a 5.3% decline in the S&P 500 [4]. - The future stock price movement will largely depend on management's commentary during the earnings call and the company's FFO outlook [4][5]. Estimate Revisions and Industry Context - The estimate revisions trend for DiamondRock Hospitality is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [7]. - The current consensus FFO estimate for the upcoming quarter is $0.33 on revenues of $309.56 million, and for the current fiscal year, it is $0.98 on revenues of $1.14 billion [8]. - The REIT and Equity Trust - Other industry is ranked in the bottom 35% of over 250 Zacks industries, suggesting potential challenges for stock performance [9].

COMPANY CONTACT Briony Quinn Chief Financial Officer (240) 744-1196 DIAMONDROCK HOSPITALITY COMPANY REPORTS FIRST QUARTER 2025 RESULTS Q1 Comparable RevPAR Increases 2.0% Declares Second Quarter 2025 Dividends BETHESDA, Maryland, Thursday, May 1, 2025 – DiamondRock Hospitality Company (the "Company") (NYSE: DRH), 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 March 31, 2025. Highl ...

DiamondRock Hospitality (DRH) shares soared 13.8% in the last trading session to close at $7.28. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 19.1% loss over the past four weeks.The increased investor optimism in the stock can be attributed to President Donald Trump’s recent announcement to put a 90-day pause on the reciprocal tariff for most countries.This hotel and resort real estate investment trust is expected to post quar ...

Core Viewpoint - DiamondRock Hospitality Company will report its financial results for the first quarter of 2025 on May 1, 2025, and will hold a conference call to discuss these results on May 2, 2025 [1]. Company Overview - DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that owns a diversified portfolio of hotels, primarily located in leisure destinations and major gateway markets [4]. - The company currently owns 36 premium quality hotels and resorts, totaling 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].

Investors interested in stocks from the REIT and Equity Trust - Other sector have probably already heard of DiamondRock Hospitality (DRH) and Omega Healthcare Investors (OHI) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision tr ...

Core Viewpoint - The article compares DiamondRock Hospitality (DRH) and Sunstone Hotel Investors (SHO) to determine which stock is more attractive to value investors [1] Group 1: Zacks Rank and Earnings Outlook - DiamondRock Hospitality has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Sunstone Hotel Investors has a Zacks Rank of 3 (Hold) [3] - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, suggesting that DRH is likely experiencing a more favorable earnings outlook [3][7] Group 2: Valuation Metrics - DRH has a forward P/E ratio of 7.88, significantly lower than SHO's forward P/E of 10.95, indicating that DRH may be undervalued [5] - The PEG ratio for DRH is 1.95, while SHO's PEG ratio is 2.15, suggesting that DRH has a better valuation relative to its expected earnings growth [5] - DRH's P/B ratio is 1.07 compared to SHO's P/B of 1.15, further supporting the notion that DRH is more attractively valued [6] - Based on these metrics, DRH earns a Value grade of A, while SHO receives a Value grade of C, highlighting DRH's superior valuation profile [6]

Core Viewpoint - Value investing remains a preferred strategy for identifying strong stocks across various market conditions, utilizing established valuation metrics to uncover potential opportunities [2]. Company Summary: DiamondRock Hospitality (DRH) - DRH currently holds a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential for value investors [4]. - The stock has a P/E ratio of 7.96, significantly lower than the industry average of 15.52, suggesting it may be undervalued [4]. - DRH's Forward P/E has fluctuated between 7.69 and 10.15 over the past 12 months, with a median of 8.65 [4]. - The PEG ratio for DRH is 1.96, compared to the industry average of 2.33, indicating favorable growth expectations relative to its valuation [5]. - The P/B ratio stands at 1.07, which is lower than the industry average of 1.67, further supporting the notion of undervaluation [6]. - DRH's P/S ratio is 1.52, significantly below the industry average of 4.02, reinforcing its attractiveness as a value stock [7]. - The P/CF ratio is 10.57, compared to the industry average of 15.58, highlighting DRH's strong cash flow outlook [8]. - Overall, these metrics suggest that DRH is likely undervalued and presents an impressive value opportunity at this time [9].

DiamondRock Hospitality Company (NYSE:DRH) Q4 2024 Earnings Conference Call February 28, 2025 10:00 AM ET Company Participants Briony Quinn - Chief Financial Officer Jeff Donnelly - Chief Executive Officer Justin Leonard - President and COO Conference Call Participants Dori Kesten - Wells Fargo Securities Austin Wurschmidt - KeyBanc Capital Markets Smedes Rose - Citi Michael Bellisario - Baird Floris van Dijkum - Compass Point LLC Operator Please be advised that today's conference is being recorded. I would ...