DIAMONDROCK HOSPITALITY COMPANY REPORTS THIRD QUARTER 2025 RESULTS

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]