Business

DIAMONDROCK HOSPITALITY COMPANY REPORTS FIRST QUARTER 2025 RESULTS

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.

Diamondrock Hospitality CompanyMay 1, 202527
DIAMONDROCK HOSPITALITY COMPANY REPORTS FIRST QUARTER 2025 RESULTS

About this update from Diamondrock Hospitality Company

[{"type":"text","content":" Q1 Comparable RevPAR Increases 2.0% ","length":35,"tagName":"p","attribs":{}},{"type":"text","content":" Declares Second Quarter 2025 Dividends ","length":38,"tagName":"p","attribs":{}},{"type":"text","content":" BETHESDA, Md. , May 1, 2025 /PRNewswire/ -- 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 .","length":305,"tagName":"p"},{"type":"image","alt":"(PRNewsfoto/DiamondRock Hospitality Company)","displaySize":"","headline":null,"caption":"(PRNewsfoto/DiamondRock Hospitality Company)","className":"","disableSlideshowImg":false,"size":{"original":{"width":400,"height":215,"url":"https://media.zenfs.com/en/prnewswire.com/565a6735581b743e28172adc1e0ebba4"},"resized":{"url":"https://s.yimg.com/ny/api/res/1.2/6UEVB3H16CjgEnygW.bYqA--/YXBwaWQ9aGlnaGxhbmRlcjt3PTcwNTtoPTM3OTtjZj13ZWJw/https://media.zenfs.com/en/prnewswire.com/565a6735581b743e28172adc1e0ebba4","width":400,"height":215}},"href":"https://mma.prnewswire.com/media/779900/DiamondRock_Hospitality_Logo.html","hrefExternal":true,"rel":"nofollow"},{"type":"text","content":" Highlights ","length":10,"tagName":"p"},{"type":"list","items":[{"val":[{"type":"text","content":" Net Income: Net income attributable to common stockholders was $9.4 million , or $0.04 per diluted share, an increase of 59.3% compared to the first quarter of 2024.","length":164,"tagName":"p"}]},{"val":[{"type":"text","content":" Comparable Revenues: $251.8 million , an increase of 0.5% compared to the first quarter of 2024.","length":95,"tagName":"p"}]},{"val":[{"type":"text","content":" Comparable RevPAR: $186.20 , an increase of 2.0% compared to the first quarter of 2024.","length":86,"tagName":"p"}]},{"val":[{"type":"text","content":" Comparable Hotel Adjusted EBITDA: $61.3 million , an increase of 2.2% compared to the first quarter of 2024.","length":107,"tagName":"p"}]},{"val":[{"type":"text","content":" Comparable Hotel Adjusted EBITDA Margin: 24.36%, an increase of 39 basis points compared to the first quarter of 2024.","length":118,"tagName":"p"}]},{"val":[{"type":"text","content":" Adjusted EBITDA: $56.1 million , which is approximately flat to the first quarter of 2024.","length":89,"tagName":"p"}]},{"val":[{"type":"text","content":" Adjusted FFO per Share: $0.19 , an increase of 5.6% compared to the first quarter of 2024.","length":89,"tagName":"p"}]},{"val":[{"type":"text","content":" Hotel Disposition: The Company completed the sale of the Westin Washington D.C. City Center for $92.0 million on February 19, 2025 .","length":131,"tagName":"p"}]},{"val":[{"type":"text","content":" Share Repurchases : The Company has repurchased 2.1 million shares of its common stock at a weighted average price of $7.66 per share for a total consideration of approximately $15.9 million through the date of this release.","length":223,"tagName":"p"}]}],"tagName":"ul","bulletedList":true,"length":1102,"olType":false},{"type":"text","content":" "First quarter operating results were in line with our expectations, with group revenues increasing over 10% and business transient revenues increasing over 9% to compared to last year. This strong revenue growth coupled with cost savings initiatives offset the softness at our Florida resorts in the first quarter resulting in comparable first quarter RevPAR growth of 2.0% and comparable Hotel Adjusted EBITDA growth of 2.2%. ","length":432,"tagName":"p","attribs":{}},{"type":"text","content":" The rise in macroeconomic uncertainly has had only a mild effect on performance thus far. Encouragingly, near-term leisure booking pace remains in line with prior year trends, however group revenue pickup in the second half of 2025 has been tempered by an unsettled business environment. In light of this, we are lowering our top line outlook for 2025 by 200 basis points, but maintaining our previous outlook for Adjusted FFO per share.  We remain optimistic DiamondRock can drive earnings growth through continued operating performance and deliberate action on accretive capital recycling. We have repurchased $15.9 million of common shares utilizing a portion the proceeds from the sale of the Westin Washington, D.C. , which exemplifies our strategy to harvest capital from low free cash flow yield assets and redeploy proceeds into higher return opportunities." ","length":875,"tagName":"p","attribs":{}},{"type":"readMore"},{"type":"text","content":"- Jeffrey J. Donnelly , Chief Executive Officer of DiamondRock Hospitality Company ","length":81,"tagName":"p","attribs":{}},{"type":"text","content":" Operating Results ","length":17,"tagName":"p"},{"type":"text","content":" Please see "Non-GAAP Financial Measures" attached to this press release for an explanation of the terms "EBITDAre," "Adjusted EBITDA," "Hotel Adjusted EBITDA," "Hotel Adjusted EBITDA Margin," "FFO" and "Adjusted FFO" and a reconciliation of these measures to net income.  Comparable operating results include all hotels owned as of March 31, 2025 for all periods presented.  See "Reconciliation of Comparable Operating Results" attached to this press release for a reconciliation to historical amounts. 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The conference call will be accessible by telephone and through the internet. Interested individuals are requested to register for the call using this  link  to obtain dial-in and webcast details. Registration details are also available by visiting https://investor.drhc.com . A replay of the conference call webcast will be archived and available online.","length":491,"tagName":"p"},{"type":"text","content":" About the Company ","length":17,"tagName":"p"},{"type":"text","content":"DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets. The Company currently owns 36 premium quality hotels with approximately 9,600 rooms. The Company has strategically positioned its portfolio to be operated both under leading global brand families as well as independent boutique hotels in the lifestyle segment. For further information on the Company and its portfolio, please visit DiamondRock Hospitality Company's website at www.drhc.com .","length":619,"tagName":"p"},{"type":"text","content":" This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as "believe," "expect," "intend," "project," "forecast," "plan" and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: the adverse impact of any future pandemic, epidemic or outbreak of any highly infectious disease on the U.S., regional and global economies, travel, the hospitality industry, and the financial condition and results of operations of the Company and its hotels; national and local economic and business conditions, including the potential for additional terrorist attacks, that will affect occupancy rates at the Company's hotels and the demand for hotel products and services; operating risks associated with the hotel business; relationships with property managers; the ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes in travel patterns, taxes and government regulations which influence or determine wages, prices, construction procedures and costs; and other risk factors contained in the Company's filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of the date of this release, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations. 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