DIAMONDROCK HOSPITALITY COMPANY REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS

Core Insights - DiamondRock Hospitality Company reported strong financial results for Q4 and full year 2025, exceeding guidance in key metrics such as comparable total RevPAR growth, adjusted EBITDA, and adjusted FFO per share [1][2] Fourth Quarter 2025 Highlights - Common share repurchases totaled 0.2 million shares at an average price of $7.93, amounting to $1.6 million [1] - Preferred stock redemption of 4.76 million shares for $121.5 million occurred on December 31, 2025 [1] - The company transferred its Class A Common Stock listing to Nasdaq on December 1, 2025 [1] - Comparable hotel adjusted EBITDA margin increased to 27.92%, up 83 basis points from Q4 2024 [1] - Comparable total RevPAR reached $311.00, a 0.6% increase from Q4 2024, driven by a 2.3% rise in out-of-room revenues [1] - Adjusted FFO per diluted share rose to $0.27, a 12.5% increase compared to Q4 2024 [1] - Net income attributable to common stockholders was $23.8 million, or $0.12 per diluted share, marking a 273.7% increase from Q4 2024 [1] Full Year 2025 Highlights - The company repurchased 4.8 million shares at an average price of $7.72 for a total of $37.1 million [1] - A $1.5 billion refinancing of the senior unsecured credit facility was completed, enhancing financial flexibility [2] - Comparable hotel adjusted EBITDA margin for the year was 28.32%, a slight increase from 2024 [1] - Comparable total RevPAR increased by 1.2% to $319.06, supported by a 2.6% rise in out-of-room revenues [1] - Adjusted FFO per diluted share for the year was $1.08, a 3.8% increase from 2024 [1] - Net income attributable to common stockholders was $91.6 million, or $0.44 per diluted share, reflecting a 139.8% increase from 2024 [1] Capital Expenditures - Approximately $81.6 million was invested in capital improvements during 2025, with significant projects including renovations at Kimpton Hotel Palomar Phoenix and the repositioning of Orchards Inn to The Cliffs at L'Auberge [2] - The company plans to invest $80 to $90 million in capital improvements in 2026, with notable projects including renovations at Kimpton Shorebreak Huntington Beach Resort and Atlanta Marriott Alpharetta [2] Debt Refinancing - The company successfully refinanced and upsized its senior unsecured credit facility, increasing it from $1.2 billion to $1.5 billion [2] - The refinancing included a $400 million revolving credit facility and multiple term loans with varying maturities [2] - Following the refinancing, the company has no debt maturities until January 2028 and its portfolio is fully unencumbered of secured debt [2] Share Repurchase and Preferred Stock Redemption - The company has $137.0 million remaining under its $200.0 million share repurchase program [2] - All outstanding shares of the 8.25% Series A Cumulative Redeemable Preferred Stock were redeemed on December 31, 2025 [2] Guidance for 2026 - The company anticipates comparable RevPAR growth of 1.0% to 3.0% and total RevPAR growth of 1.25% to 3.25% for 2026 [2] - Adjusted EBITDA is expected to range from $287 million to $302 million, with adjusted FFO projected between $227 million and $242 million [2]