DiamondRock Hospitality Company (DRH) Q3 2026 earnings summary

Executive summary

• Comparable RevPAR rose 6.6%, Total RevPAR 6.5% and Hotel Adjusted EBITDA 12.5%; disciplined expense conversion expanded margin 166 bps, the third consecutive quarter above 100 bps.

• Stronger demand and rates supported raised 2026 guidance; multiple property-level earnings drivers are expected to support growth in 2027.

Financial highlights

• Q3 revenue was $297.6M, up 4.3% YoY; net income attributable to common stockholders was $33.3M and diluted EPS was $0.16, versus $22.6M and $0.10.

• Q3 room revenue increased 3.4% to $195.5M, food and beverage revenue rose 7.1% to $72.2M, and other revenue grew 3.8% to $30.0M.

• Comparable Hotel Adjusted EBITDA was $91.7M, up 12.5%; margin increased 166 bps to 30.81%.

• Corporate Adjusted EBITDA was $84.8M, up 7.2%; Adjusted FFO was $66.1M, or $0.32 per diluted share, up 11.7% and 10.3%, respectively.

• 9M revenue was $874.1M, up 3.3%; Adjusted EBITDA was $253.3M, up 12.2%, and net income attributable to common stockholders was $138.3M.

Outlook and guidance

• 2026 Comparable RevPAR and Total RevPAR growth guidance increased to 4.75%–5.25%; the Comparable RevPAR midpoint rose 175 bps.

• 2026 Adjusted EBITDA guidance is $322M–$327M; Adjusted FFO is $256.5M–$261.5M, or $1.24–$1.26 per diluted share.

• With expected 2026 capital expenditures of $75M–$80M, raised guidance implies 25% growth in free cash flow per share.

• 2027 earnings drivers include hotel stabilization, event demand, Westin Boston Seaport franchise savings, a full year of Bellmoor ownership and continued revenue-to-earnings conversion.

• October results exceeded expectations; Q4 Total RevPAR growth was indicated at 4%–6%, and group pace was strongest in Q4 2026 and Q2–Q3 2027.