Core Viewpoint - DiamondRock Hospitality (DRH) reported quarterly funds from operations (FFO) of $0.35 per share, exceeding the Zacks Consensus Estimate of $0.33 per share, and showing a slight increase from $0.34 per share a year ago [1] Group 1: Financial Performance - The quarterly FFO surprise was +6.06%, and the company had a previous quarter surprise of +11.76% with an actual FFO of $0.19 compared to an expected $0.17 [2] - Revenues for the quarter ended June 2025 were $305.72 million, which missed the Zacks Consensus Estimate by 0.94%, and decreased from $309.28 million year-over-year [3] - Over the last four quarters, the company has surpassed consensus FFO estimates three times but has only topped revenue estimates once [3] Group 2: Stock Performance and Outlook - DiamondRock Hospitality shares have declined approximately 16.1% since the beginning of the year, contrasting with the S&P 500's gain of 7.9% [4] - The company's FFO outlook is crucial for investors, with current consensus FFO estimates at $0.26 for the coming quarter and $1.00 for the current fiscal year [5][8] - The Zacks Rank for DiamondRock Hospitality is currently 2 (Buy), indicating expectations for the stock to outperform the market in the near future [7] Group 3: Industry Context - The REIT and Equity Trust - Other industry is currently in the top 40% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [9]

[Financial Highlights & Operating Results](index=1&type=section&id=Financial%20Highlights%20%26%20Operating%20Results) DiamondRock reported a **73.8%** net income increase to **$38.4 million** in Q2 2025, with flat Adjusted FFO per share and a **1.1%** rise in Comparable Total RevPAR Q2 2025 Key Performance Indicators (vs. Q2 2024) | Metric | Q2 2025 | Change vs. Q2 2024 | | :--- | :--- | :--- | | Net Income | $38.4 million | +73.8% | | Comparable RevPAR | $226.95 | +0.1% | | Comparable Total RevPAR | $350.00 | +1.1% | | Comparable Hotel Adjusted EBITDA | $95.4 million | -1.9% | | Adjusted EBITDA | $90.5 million | -4.7% | | Adjusted FFO per Share | $0.35 | Flat | - Out-of-room spend accelerated from Q1 levels and is expected to remain a strong point in the second half of the year[3](index=3&type=chunk)[5](index=5&type=chunk) - Expense growth was limited to **0.7%**, excluding a larger-than-anticipated property tax increase in Chicago; excluding this tax impact, Comparable Hotel Adjusted EBITDA margins would have expanded by **30 basis points** instead of contracting by **97 basis points**[3](index=3&type=chunk) Comparable Operating Results Summary | Metric | Three Months Ended June 30, 2025 | Change (YoY) | Six Months Ended June 30, 2025 | Change (YoY) | | :--- | :--- | :--- | :--- | :--- | | RevPAR | $226.95 | 0.1% | $206.69 | 1.0% | | Total RevPAR | $350.00 | 1.1% | $320.95 | 1.3% | | Total Revenues | $305.7M | 1.2% | $557.5M | 0.9% | | Hotel Adjusted EBITDA | $95.4M | (1.9)% | $156.7M | (0.4)% | | Hotel Adjusted EBITDA Margin | 31.19% | (97) bps | 28.11% | (34) bps | [Capital Management & Shareholder Returns](index=3&type=section&id=Capital%20Management%20%26%20Shareholder%20Returns) The company completed a **$1.5 billion** refinancing, extending debt maturities to 2028, and continued share repurchases - Completed a **$1.5 billion** refinancing of its senior unsecured credit facility, increasing its size from **$1.2 billion**, addressing all near-term maturities and leaving no debt maturities until **2028**[1](index=1&type=chunk)[9](index=9&type=chunk) - Following the planned prepayment of the Westin Boston Seaport District mortgage in September 2025, the company's entire portfolio will be unencumbered by secured debt[10](index=10&type=chunk) - The company invested **$41.3 million** in capital improvements in the first half of 2025 and expects to invest a total of **$85.0 to $95.0 million** for the full year[11](index=11&type=chunk) - Year-to-date, the company repurchased **3.6 million** common shares for approximately **$27.3 million**, with **$146.8 million** remaining under its repurchase program[1](index=1&type=chunk)[12](index=12&type=chunk) - Declared a quarterly cash dividend of **$0.08** per common share and **$0.515625** per Series A Preferred Stock share[14](index=14&type=chunk) [Full Year 2025 Guidance](index=4&type=section&id=GUIDANCE) DiamondRock raised its full-year 2025 guidance midpoint for Adjusted EBITDA and FFO per share, anticipating improved Total RevPAR growth Full Year 2025 Guidance Update | Metric | Current Guidance | Previous Guidance | Change at Midpoint | | :--- | :--- | :--- | :--- | | Comparable RevPAR Growth | (1.0)% to 1.0% | (1.0)% to 1.0% | —% | | Comparable Total RevPAR Growth | (0.5%) to 1.5% | (1.0)% to 1.0% | +0.5% | | Adjusted EBITDA | $275M to $295M | $270M to $295M | +$2.5M | | Adjusted FFO per share | $0.96 to $1.06 | $0.94 to $1.06 | +$0.01 | - Key guidance assumptions include: - Corporate expenses of **$24M to $25M** (unchanged) - Cash interest expense of **$63M to $64M** (increased by **$2.5M** due to credit facility upsizing) - Fully diluted weighted average shares of **209.0 million**[20](index=20&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) Unaudited financial statements show total assets decreased to **$3.06 billion**, with net income attributable to common stockholders surging to **$38.4 million** [Consolidated Balance Sheets](index=7&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, total assets were **$3.06 billion**, down from **$3.17 billion** at year-end 2024, while total liabilities decreased Consolidated Balance Sheet Summary (in thousands) | Account | June 30, 2025 (unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$3,061,315** | **$3,172,251** | | Debt, net | $1,020,320 | $1,095,294 | | **Total Liabilities** | **$1,476,817** | **$1,573,319** | | **Total Equity** | **$1,584,498** | **$1,598,932** | [Consolidated Statements of Operations](index=8&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For Q2 2025, total revenues were **$305.7 million**, with net income attributable to common stockholders surging to **$38.4 million** Consolidated Statements of Operations Summary (in thousands) | Account | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total Revenues | $305,720 | $309,280 | | Total Operating Expenses | $249,586 | $268,274 | | Net Income | $41,039 | $24,631 | | Net Income Attributable to Common Stockholders | $38,381 | $22,076 | | Earnings per Diluted Share | $0.18 | $0.10 | [Non-GAAP Financial Measures & Reconciliations](index=9&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) This section details the company's use of non-GAAP measures like EBITDA and FFO, providing comprehensive reconciliations from GAAP net income [Explanation of Non-GAAP Financial Measures](index=9&type=section&id=Explanation%20of%20Non-GAAP%20Financial%20Measures) The company defines and justifies its use of EBITDA, FFO, and their adjusted variants as key performance indicators - Management uses non-GAAP measures like EBITDA and FFO to evaluate hotel performance and facilitate comparisons with other lodging REITs[29](index=29&type=chunk) - Effective **January 1, 2025**, the company excludes share-based compensation from its calculations of Adjusted EBITDA and Adjusted FFO to align with financial covenant calculations and enhance peer comparability[8](index=8&type=chunk)[36](index=36&type=chunk) [Reconciliations of Non-GAAP Measures](index=13&type=section&id=Reconciliations%20of%20Non-GAAP%20Measures) Detailed reconciliations from GAAP net income to non-GAAP metrics show Q2 2025 net income of **$41.0 million** reconciled to Adjusted EBITDA of **$90.5 million** Reconciliation of Net Income to Adjusted EBITDA (in thousands) | Line Item | Three Months Ended June 30, 2025 | | :--- | :--- | | Net income | $41,039 | | Interest expense | $14,868 | | Real estate related depreciation and amortization | $28,156 | | EBITDA/EBITDAre | $85,054 | | Adjustments (Share-based comp, etc.) | $5,403 | | **Adjusted EBITDA** | **$90,457** | Reconciliation of Net Income to Adjusted FFO (in thousands) | Line Item | Three Months Ended June 30, 2025 | | :--- | :--- | | Net income | $41,039 | | Real estate related depreciation and amortization | $28,156 | | FFO | $69,195 | | Adjustments (Share-based comp, etc.) | $5,589 | | Distribution to preferred stockholders | ($2,454) | | **Adjusted FFO available to common stock** | **$72,330** | - Comparable Hotel Adjusted EBITDA for Q2 2025 was **$95.4 million**, compared to **$97.2 million** in Q2 2024; the reconciliation adjusts for the sale of the Westin Washington D.C. City Center and the acquisition of the AC Hotel Minneapolis Downtown[40](index=40&type=chunk) [Supplemental Information](index=15&type=section&id=Supplemental%20Information) This section provides supplemental data, including market capitalization, debt structure, and extensive property-level operating statistics [Market Capitalization and Debt Summary](index=16&type=section&id=Market%20Capitalization%20and%20Debt%20Summary) As of June 30, 2025, total enterprise value was approximately **$2.68 billion**, with total debt outstanding of **$1.27 billion** Enterprise Value as of June 30, 2025 (in thousands) | Component | Value | | :--- | :--- | | Common equity capitalization | $1,592,487 | | Preferred equity capitalization | $119,000 | | Consolidated debt (face amount) | $1,020,876 | | Cash and cash equivalents | ($52,402) | | **Total enterprise value** | **$2,679,961** | - Post-refinancing (as of Aug 7, 2025), the average years to maturity for the company's debt increased from **1.4 years** to **2.8 years**[46](index=46&type=chunk) [Hotel Operating Statistics](index=17&type=section&id=Hotel%20Operating%20Statistics) Detailed operating statistics for 36 comparable hotels show Q2 2025 comparable ADR increased by **1.1%** to **$295.78** Comparable Portfolio Operating Statistics - Q2 2025 vs Q2 2024 | Metric | 2Q 2025 | 2Q 2024 | Change | | :--- | :--- | :--- | :--- | | ADR | $295.78 | $292.59 | 1.1% | | Occupancy | 76.7% | 77.5% | (0.8)% | | RevPAR | $226.95 | $226.83 | 0.1% | | Total RevPAR | $350.00 | $346.27 | 1.1% | [Hotel Adjusted EBITDA Reconciliation](index=22&type=section&id=Hotel%20Adjusted%20EBITDA%20Reconciliation) This section provides granular, hotel-by-hotel reconciliations of total revenues to Hotel Adjusted EBITDA for Q2 2025 and YTD periods - Provides a detailed reconciliation from Total Revenues to Hotel Adjusted EBITDA for each of the company's properties for Q2 2025, Q2 2024, YTD 2025, and YTD 2024[53](index=53&type=chunk)[54](index=54&type=chunk)[55](index=55&type=chunk)[56](index=56&type=chunk)

Group 1 - The article invites active investors to join a free trial and engage in discussions with sophisticated traders and investors [1] Group 2 - There are no stock, option, or similar derivative positions held by the analyst in any of the mentioned companies, nor plans to initiate such positions within the next 72 hours [2] - The article expresses the author's own opinions and is not receiving compensation from any company mentioned [2] Group 3 - Seeking Alpha clarifies that past performance does not guarantee future results and no investment recommendations are provided [3] - The views expressed may not reflect those of Seeking Alpha as a whole, and the analysts may not be licensed or certified [3]

Group 1 - The article compares two stocks, DiamondRock Hospitality (DRH) and CubeSmart (CUBE), to determine which offers better value for investors [1] - DRH has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to CUBE, which has a Zacks Rank of 3 (Hold) [3][7] - Value investors typically consider various traditional metrics to identify undervalued stocks, beyond just earnings outlook [3] Group 2 - The Value category of the Style Scores system evaluates companies based on key metrics such as P/E ratio, P/S ratio, earnings yield, and cash flow per share [4] - DRH has a forward P/E ratio of 8.03, significantly lower than CUBE's forward P/E of 15.85, suggesting DRH may be undervalued [5] - DRH's PEG ratio is 4.61, while CUBE's PEG ratio is 7.51, indicating DRH's expected earnings growth is more favorable [5] - DRH's P/B ratio is 1.07, compared to CUBE's P/B of 3.26, further supporting DRH's valuation as more attractive [6] - Based on these valuation metrics, DRH holds a Value grade of B, while CUBE has a Value grade of D [6]

Core Viewpoint - DiamondRock Hospitality Company has successfully refinanced, upsized, and extended the maturities of its senior unsecured credit facility, enhancing its balance sheet strength and flexibility [1][3]. Group 1: Credit Facility Details - The existing $1.2 billion credit facility has been increased to $1.5 billion, with a maturity schedule extended [1]. - The Credit Facility includes a $400 million revolving credit facility maturing in January 2031, a $500 million term loan maturing in January 2029, and two $300 million term loans maturing in January 2030, all with prepayment options [1][2]. - The Company plans to use the additional $300 million to repay three mortgage loans totaling approximately $125 million that matured in 2025 [2]. Group 2: Financial Strategy and Position - Following the repayment of the mortgage loans, the Company will have no debt maturities until January 2028, resulting in a fully unencumbered portfolio [2]. - The Company emphasizes maintaining low leverage and financial flexibility to capitalize on future capital allocation opportunities [3]. Group 3: Company Overview - DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) with a portfolio of 36 premium quality hotels and resorts, totaling approximately 9,600 rooms [5]. - The Company operates hotels under leading global brands and independent boutique hotels in leisure destinations and top gateway markets [5].

Group 1 - The article discusses the features of the investing group Trade With Beta, which includes frequent picks for mispriced preferred stocks and baby bonds, weekly reviews of over 1200 equities, IPO previews, hedging strategies, and an actively managed portfolio [1] - The service offers a chat room for discussion among sophisticated traders and investors, allowing for real-time engagement and idea sharing [1] - The analyst has a beneficial long position in the shares of DRH.PR.A, indicating a personal investment interest in the discussed securities [1]

Company Overview - DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that owns a diversified portfolio of 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 both leading global brand hotels and independent boutique hotels in the lifestyle segment [4] Financial Reporting - The Company will report financial results for the second quarter of 2025 after the market closes on Thursday, August 7, 2025 [1] - A conference call to discuss the financial results and business outlook will be held on Friday, August 8, 2025, at 9:00 a.m. Eastern Time [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 - Binary Tree Analytics (BTA) focuses on providing transparency and analytics in capital markets instruments and trades, particularly in Closed-End Funds (CEFs), Exchange-Traded Funds (ETFs), and Special Situations [1] - The company aims to deliver high annualized returns with a low volatility profile, leveraging over 20 years of investment experience [1]

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Unaudited Q1 2025 financial statements show net income attributable to common stockholders increased to **$9.4 million**, total assets decreased to **$3.10 billion**, and **$63.5 million** net cash provided by investing activities, including a **$92.0 million** hotel sale Consolidated Balance Sheet Summary (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$3,101,597** | **$3,172,251** | | Total Liabilities | $1,527,945 | $1,573,319 | | Total Equity | $1,573,652 | $1,598,932 | Consolidated Statement of Operations Summary (in thousands, except per share amounts) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total Revenues | $254,853 | $256,423 | | Total Operating Expenses | $230,086 | $233,978 | | Net Income | $11,915 | $8,358 | | Net Income Attributable to Common Stockholders | $9,403 | $5,874 | | EPS (Basic) | $0.05 | $0.03 | | EPS (Diluted) | $0.04 | $0.03 | Consolidated Statement of Cash Flows Summary (in thousands) | Cash Flow Category | Three Months Ended March 31, 2025 | | :--- | :--- | | Net cash provided by operating activities | $27,606 | | Net cash provided by (used in) investing activities | $63,457 | | Net cash used in financing activities | $(69,593) | - 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**[30](index=30&type=chunk) - During Q1 2025, the company repurchased **1,413,643 shares** of common stock at an average price of **$7.85 per share**, for a total of **$11.1 million**[50](index=50&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 performance, noting a **0.6%** revenue decrease to **$254.9 million** but a **2.0%** RevPAR increase, supported by **$100.6 million** cash and **$400 million** credit facility capacity, with **$85-95 million** projected 2025 capital expenditure - As of March 31, 2025, DiamondRock owned a portfolio of **36 premium hotels and resorts** with **9,595 guest rooms** in **26 U.S. markets**[81](index=81&type=chunk) Revenue Comparison (in thousands) | Revenue Category | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Rooms | $163,118 | $163,507 | (0.2)% | | Food and beverage | $66,841 | $68,381 | (2.3)% | | **Total revenues** | **$254,853** | **$256,423** | **(0.6)%** | Key Hotel Operating Statistics | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Occupancy % | 66.6% | 67.5% | (0.9)% | | ADR | $277.01 | $268.31 | 3.2% | | RevPAR | $184.60 | $180.98 | 2.0% | - The company maintains significant liquidity with **$100.6 million** of unrestricted cash and **$400 million** of borrowing capacity under its senior unsecured revolving credit facility as of March 31, 2025[113](index=113&type=chunk)[126](index=126&type=chunk) - For 2025, the company expects to spend between **$85 million and $95 million** on capital improvements, with significant projects at Orchards Inn Sedona, Kimpton Hotel Palomar Phoenix, and Courtyard New York Manhattan/Midtown East[134](index=134&type=chunk)[137](index=137&type=chunk) Non-GAAP Financial Measures Reconciliation Summary (in thousands) | Metric | Q1 2025 | Q1 2024 (As Adjusted) | | :--- | :--- | :--- | | Net Income | $11,915 | $8,358 | | EBITDA/EBITDAre | $54,123 | $51,827 | | Adjusted EBITDA | $56,110 | $56,214 | | Hotel Adjusted EBITDA | $61,664 | $61,414 | | FFO available to common stock and unit holders | $37,353 | $34,217 | | Adjusted FFO available to common stock and unit holders | $39,516 | $38,604 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk from its **$0.8 billion** variable-rate debt, mitigated by interest rate swaps fixing **$325 million** - The primary market risk is interest rate risk. As of March 31, 2025, **$0.8 billion** of the company's **$1.1 billion** total debt had a variable interest rate[157](index=157&type=chunk) - The company has effectively fixed the interest rate on **$325 million** of its variable-rate debt through the use of interest rate swaps[157](index=157&type=chunk) - A **100 basis point (1%)** fluctuation in market interest rates on the unhedged variable rate debt would change annual interest expense by approximately **$4.8 million**[157](index=157&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of the end of the period covered by the report[158](index=158&type=chunk) - There were no changes in the company's internal control over financial reporting during the most recent fiscal quarter that materially affected, or are reasonably likely to materially affect, internal controls[159](index=159&type=chunk) [PART II. OTHER INFORMATION](index=42&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal proceedings, with management expecting no material adverse effect on financial condition or results - The company is subject to various claims and lawsuits arising in the ordinary course of business but does not expect the aggregate liability to have a material adverse impact on its financial condition[161](index=161&type=chunk) [Item 1A. Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) Key risk factors include the lodging industry's cyclicality, adverse impacts of inflation on costs, higher interest rates on financing and valuations, and challenges in funding ongoing capital improvements - The performance of the lodging industry is highly cyclical and historically linked to key macroeconomic indicators, making the business sensitive to economic downturns[163](index=163&type=chunk) - Heightened inflation could continue to negatively impact operating expenses (e.g., labor, food, utilities) and the cost of renovations. Tariffs on imported goods could further increase costs[165](index=165&type=chunk)[171](index=171&type=chunk) - Higher interest rates could increase future financing costs and negatively affect real estate valuations due to rising capitalization rates[165](index=165&type=chunk)[167](index=167&type=chunk) - The company faces ongoing risks related to necessary hotel renovations, including construction cost overruns, operational disruptions, and the challenge of funding these projects due to REIT distribution requirements limiting retained earnings[168](index=168&type=chunk)[169](index=169&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased over **1.4 million** shares for approximately **$11.1 million** in Q1 2025 under its **$200.0 million** share repurchase program Issuer Purchases of Equity Securities (Q1 2025) | Period | Total Shares Purchased | Average Price Paid per Share | Total Shares Purchased as Part of Publicly Announced Program | | :--- | :--- | :--- | :--- | | Jan 1 - Jan 31, 2025 | — | $ — | — | | Feb 1 - Feb 28, 2025 | 218,418 | $8.17 | — | | Mar 1 - Mar 31, 2025 | 1,430,769 | $7.86 | 1,413,643 | - The share repurchases were made under a **$200.0 million** program approved on May 1, 2024, which expires on May 1, 2026. As of March 31, 2025, approximately **$161.2 million** remained available under the program[173](index=173&type=chunk) [Item 3. Defaults Upon Senior Securities](index=45&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon its senior securities during the period - None[175](index=175&type=chunk) [Item 4. Mine Safety Disclosures](index=45&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[176](index=176&type=chunk) [Item 5. Other Information](index=45&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, terminated, or modified Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during Q1 2025 - During the three months ended March 31, 2025, no directors or officers adopted, terminated, or modified a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement[177](index=177&type=chunk) [Item 6. Exhibits](index=46&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including credit agreement amendments, CEO/CFO certifications, and Inline XBRL financial data files - The exhibits filed with the report include amendments to the Sixth Amended and Restated Credit Agreement, CEO and CFO certifications (Rule 13a-14(a) and Section 906), and Inline XBRL documents[178](index=178&type=chunk)[179](index=179&type=chunk)

Financial Data and Key Metrics Changes - Comparable RevPAR increased by 2% year-over-year, 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 [10] - Adjusted FFO was $0.19 per share, an increase of 5.6% over 2024, and free cash flow per share increased by 10% to $0.63 [11] Business Line Data and Key Metrics Changes - Urban hotels saw RevPAR growth of 5%, driven by group and business transient segments, while food and beverage revenue declined by 3.3% year-over-year [4][5] - Resort portfolio experienced a decline in comparable RevPAR by 2.1%, with total revenues slightly up in January and February but down by 4.3% in March [6][8] - Group room revenues increased by 10.4% year-over-year, with urban hotels seeing a 14.4% increase [9] Market Data and Key Metrics Changes - Florida assets experienced mid-single-digit revenue declines, with RevPAR down 5.9% [8] - Outside of Florida, RevPAR increased by 1.7%, with notable increases in luxury resorts like The Heights and Vail, which saw RevPAR growth of 7% and total RevPAR growth of 9.5% [8] Company Strategy and Development Direction - The company is focused on adding groups to resorts to enhance pricing and profitability, while also managing costs effectively in the face of revenue softness [9] - The company plans to continue share repurchases and is exploring refinancing options for maturing debts [12][13] - The outlook for 2025 has been revised, with FFO per share guidance unchanged at $0.94 to $1.06, and RevPAR outlook adjusted to a range of -1% to +1% growth [25][26] Management's Comments on Operating Environment and Future Outlook - Management noted that the macroeconomic environment remains unsettled, impacting group lead conversion rates, but expressed cautious optimism for the second half of 2025 [22][24] - The company anticipates that demand for drive-to resorts may increase due to economic conditions, while foreign visitation is expected to be softer than initially anticipated [20][21] - Management highlighted the importance of maintaining liquidity and flexibility in the current environment while focusing on increasing earnings per share [80] Other Important Information - The company repurchased 1.4 million shares at an average price of $7.85, with a total of approximately $16 million in repurchases year-to-date [12] - The company has three mortgage loans maturing in 2025, totaling just under $300 million, and is considering a recast of its corporate credit facility [12][13] Q&A Session Summary Question: Preliminary portfolio-wide RevPAR for April - Management indicated that preliminary April RevPAR is showing better than 2% growth [31] Question: Impact of tariffs on renovation costs - Management stated that renovation costs are complex and depend on the timing of orders and tariffs [32][34] Question: Profile of average group bookings - Management noted that group bookings range from associations to corporate events, with average hotel sizes around 200 to 250 rooms [39] Question: Markets with strong group pacing - Management highlighted Denver and Salt Lake as markets showing significant strength in group bookings [42] Question: Average booking window for groups - Management mentioned that the booking window for smaller groups is typically 4 to 6 months, while larger groups book 8 to 12 months out [57] Question: Consumer behavior shifts in booking and spending - Management observed that booking windows are getting shorter, but on-property spending remains in line with or ahead of last year [70] Question: Expectations for wages and benefits growth - Management expects wages and benefits growth to be around 3% to 3.5% for the full year [76] Question: Incremental share repurchases versus cash position - Management emphasized the importance of driving value through share repurchases while maintaining liquidity [80]