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DiamondRock Hospitality Company (DRH) investor relations material

DiamondRock Hospitality Company Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary7 Nov, 2025

Executive summary

  • Q3 2025 results exceeded expectations, with Adjusted EBITDA of $79.1 million and Adjusted FFO per share of $0.29, driven by strong group and business transient demand, robust banquet and catering spend, and out-of-room revenue growth.

  • Portfolio consists of 36 premium hotels and resorts with 9,595 guest rooms, focused on major urban and resort markets in the U.S., and remains geographically diversified.

  • Operates as a REIT, owning but not operating hotels, with third-party management and brand agreements.

  • Strategy emphasizes aggressive asset management, prudent financial strategy, and disciplined capital allocation to maximize shareholder returns.

  • Portfolio is now fully unencumbered by secured debt, with earliest maturity in 2029.

Financial highlights

  • Total revenues for Q3 2025 were $285.4 million, flat year-over-year; net income attributable to common stockholders was $20.1 million ($0.10 per diluted share), down 16.3% year-over-year.

  • Adjusted EBITDA for Q3 2025 was $79.1 million, up 2.7% year-over-year; Adjusted FFO per share was $0.29, up 7.4%.

  • Comparable RevPAR was $214.21, down 0.3% year-over-year; Comparable Total RevPAR increased 1.5% to $323.29, driven by a 5.1% rise in out-of-room revenues.

  • Hotel operating expenses rose 1.6%, with only a 3 basis point EBITDA margin contraction.

  • Year-to-date capital expenditures totaled $60.9 million, with full-year 2025 capex expected at $85–90 million.

Outlook and guidance

  • Raised midpoint of 2025 Adjusted EBITDA guidance to $291 million and Adjusted FFO to $217 million; full-year 2025 guidance: Comparable RevPAR growth of (0.5)% to 0.5%, Adjusted EBITDA of $287–295 million, Adjusted FFO of $213–221 million, and Adjusted FFO per share of $1.02–1.06.

  • 2026 outlook includes tailwinds from completed renovations, FIFA World Cup exposure, and strong group pace.

  • Estimated capital expenditures for 2025 are expected to be $85–90 million, with significant projects completed or underway.

  • Management continues to monitor macroeconomic, political, and regulatory factors, including inflation and interest rates, which may impact leisure and international travel demand.

  • Corporate expenses expected at $24–25 million; cash interest expense at $62–63 million.

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Frequently asked questions

DiamondRock Hospitality Company is a real estate investment trust that owns a portfolio of hotels and resorts located in major metropolitan and destination markets. The company operates properties under leading hotel brands and aims to maximize value through active asset management. DiamondRock serves business and leisure travelers through full-service and lifestyle hotel offerings. The company is headquartered in Bethesda, Maryland, and its shares are listed on the NYSE.

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