DiamondRock Hospitality Company (DRH) Q4 2024 earnings summary

Executive summary

• Fourth quarter and full-year 2024 results exceeded expectations and guidance, driven by strong urban hotel, group, and business transient revenue growth, as well as cost savings initiatives.

• Urban hotels saw RevPAR growth of 8.2% on a 5.4% increase in ADR, while Florida resorts declined but other resorts grew.

• Group segment remained the strongest, with Group Room revenues up 8.1% and urban Group Room revenue up 10.2% year-over-year.

• Hotel-adjusted EBITDA grew 16.4% to $75.9 million in Q4, with corporate-adjusted EBITDA up nearly 20% to $68.7 million.

• Announced a $0.08 per share dividend for Q1 2025 and continued active capital recycling, including share repurchases and asset sales.

Financial highlights

• Q4 2024 comparable revenues rose 5.7% year-over-year to $280.5 million; comparable RevPAR up 5.5% to $200.46.

• Q4 net loss attributable to common stockholders was $13.7 million, including a $32.6 million impairment loss.

• Q4 hotel-adjusted EBITDA was $75.9 million (16.4% growth), and corporate-adjusted EBITDA was $68.7 million (19.9% growth).

• Adjusted FFO per share was $0.24 in Q4 (+33% YoY); full year adjusted FFO per share was $1.01 (+8.6%).

• Total common dividends paid in 2024 were $0.32 per share.

Outlook and guidance

• 2025 guidance: comparable RevPAR growth of 1.0%–3.0%, adjusted EBITDA of $275–$300 million, and adjusted FFO per share of $0.94–$1.06.

• Expects continued growth from urban hotels and benefits from recent rebrandings and renovations.

• 2025 capital expenditures projected at $85–$95 million, with major projects at Orchards Inn Sedona, Hilton Garden Inn NY/Times Square, Kimpton Hotel Palomar Phoenix, and Courtyard NY/Midtown East.

• Continued softness expected in leisure, especially Florida resorts, with mid-single-digit RevPAR declines in Q1.

• 2026 revenue pace is up 15% on strong demand and rate growth.