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]

Core Insights - DiamondRock Hospitality Company reported third quarter results that exceeded expectations, driven by a rebound in group and business transient demand, leading to stronger room revenues and increased out-of-room spending [3][4] - The company has successfully navigated the political and economic environment, outperforming industry RevPAR trends due to a strategically curated portfolio of hotels [4] - The company has repurchased 4.8 million common shares year-to-date, reflecting confidence in its share value and financial position [5][7] Operating Results - For the three months ended September 30, 2025, the company reported: - Comparable ADR of $281.05, a decrease of 0.4% from the previous year - Occupancy rate remained stable at 76.2% - Comparable RevPAR of $214.21, a decrease of 0.3% - Comparable Total RevPAR increased by 1.5% to $323.29, driven by a 5.1% increase in out-of-room revenues [6][7] - Hotel Adjusted EBITDA was $83.2 million, an increase of 1.5% compared to the same quarter in 2024, with a margin of 29.14% [7][6] Financial Position - The company refinanced and expanded its senior unsecured credit facility to $1.5 billion, extending maturities to 2028 and eliminating all secured debt [5][11] - As of September 30, 2025, total debt outstanding was $1.1 billion, with a weighted average interest rate of 5.3% [12] - The company declared a quarterly cash dividend of $0.08 per share, paid on October 14, 2025 [14] Capital Expenditures - The company invested approximately $60.9 million in capital improvements during the nine months ended September 30, 2025, and expects to invest $85.0 to $90.0 million in total capital improvements for the year [10] Guidance - The company raised its midpoint guidance for 2025 Adjusted EBITDA to a range of $287 million to $295 million, and Adjusted FFO to $213 million to $221 million [15]

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

Financial Data and Key Metrics Changes - Comparable RevPAR growth in Q2 2025 was 0.1%, driven by a 1.1% increase in rate and an 80 basis point decline in occupancy [4] - Total RevPAR growth was 1.1%, attributed to a 4.2% increase in out of room revenues per occupied room, reaching a new quarterly high of $160 per occupied room [4] - Corporate adjusted EBITDA was $90.5 million, and adjusted FFO per share was $0.35, with free cash flow per share increasing approximately 4.5% to $0.63 [7] Business Line Data and Key Metrics Changes - Group room revenue increased by 0.8%, business transient revenue rose by 4.2%, while leisure transient revenue declined by 1.6% [5] - Food and beverage revenues increased by 3.1%, with F&B profit rising over 6%, leading to a margin increase of 105 basis points [5][6] - Urban portfolio achieved 3% RevPAR growth, with April being the strongest month at 4.6% growth [7][8] - Resort portfolio saw comparable RevPAR decline of 6.3%, impacted by the delayed opening of The Cliffs at La Verge [9] Market Data and Key Metrics Changes - Urban hotels experienced total RevPAR growth that was 100 basis points stronger than RevPAR growth, with food and beverage revenues up over 5% [8] - Resort RevPAR performance varied, with Florida resorts experiencing a 4.1% decline, but out of room spend per occupied room increased by 6.7% [11] - Group room revenues across the portfolio increased by 0.8%, with rates up 3.3% and room nights down 2.5% [12] Company Strategy and Development Direction - The company aims to drive outsized free cash flow per share growth and is focused on recycling low free cash flow yield hotels into higher yielding investments [18][19] - The company plans to continue share repurchases as a key use of capital, especially when trading at a favorable cap rate [15][23] - Future value creation opportunities include potential developments at Chico Hot Springs and residential opportunities in Destin and Fort Lauderdale [26] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment is expected to stabilize, with improving group lead volumes and out of room spending trends [30] - The company maintains a full-year outlook for RevPAR growth of negative 1% to positive 1%, with total RevPAR growth expected to outperform RevPAR growth by 50 basis points in 2025 [31] - Management expressed optimism about the potential for RevPAR acceleration in the coming year, contingent on reduced political turmoil and increased domestic investment [70] Other Important Information - The company successfully refinanced its senior unsecured credit facility, increasing its size to $1.5 billion, providing operational and transactional flexibility [14][71] - The company has declared or paid a quarterly common dividend of $0.08 per share and may declare an additional sub-dividend for Q4 based on taxable income [15] Q&A Session Summary Question: Can you elaborate on the stabilization at the higher end of the portfolio? - Management clarified that the comment referred to overall portfolio demand improving from a previously softer point [34] Question: What is driving the low single-digit RevPAR declines in Q3? - Management indicated that the decline is primarily due to difficult comparisons from last year's exceptional performance, particularly related to the DNC in Chicago [36][38] Question: How do you view share buybacks in relation to addressing preferred shares? - Management stated that share buybacks remain an attractive use of capital, but they will weigh options regarding preferred shares as the year progresses [41][42] Question: What segments are driving the improvement in group booking pace? - Management noted that the urban side is seeing significant improvement, with short-term group bookings contributing positively [48] Question: How does the company plan to pursue asset sales? - Management acknowledged that recent market volatility and property tax increases have impacted their disposition plans, but they remain focused on accretive recycling opportunities [80][100]

Financial Performance - For the quarter ended June 2025, DiamondRock Hospitality (DRH) reported revenue of $305.72 million, down 1.2% year-over-year [1] - EPS for the quarter was $0.35, compared to $0.10 in the same quarter last year, indicating significant improvement [1] - The reported revenue was below the Zacks Consensus Estimate of $308.63 million, resulting in a surprise of -0.94% [1] - The company delivered an EPS surprise of +6.06%, with the consensus EPS estimate being $0.33 [1] Key Metrics - Revenues from Other sources were $28.66 million, exceeding the estimated $27.87 million, representing a +3.5% change year-over-year [4] - Food and beverage revenues were reported at $78.83 million, slightly above the estimated $78.58 million, with a +0.9% change compared to the previous year [4] - Room revenues were $198.24 million, below the estimated $205.01 million, reflecting a year-over-year decline of -2.6% [4] - Net Earnings Per Share (Diluted) was $0.18, slightly below the estimated $0.19 [4] Stock Performance - Shares of DiamondRock Hospitality have returned -4.9% over the past month, contrasting with the Zacks S&P 500 composite's +1.2% change [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [3]