DiamondRock Hospitality Company (DRH) Q4 2025 earnings summary

Executive summary

• Finished 2025 ahead of guidance, achieving record FFO per share, outperforming peers by over 1,300 basis points in total shareholder return, and celebrating 20 years as a public REIT with a board leadership transition to Bruce D. Wardinski.

• Fourth quarter net income attributable to common stockholders rose 273.7% year-over-year to $23.8 million ($0.12 per diluted share).

• Adjusted EBITDA for Q4 was $71.9 million, up 3.3% year-over-year; full-year Adjusted EBITDA was $297.6 million, down 0.1%.

• Adjusted FFO per diluted share for Q4 increased 12.5% to $0.27; full-year Adjusted FFO per share rose 3.8% to $1.08.

• Portfolio repositioning, cost discipline, and a rebound in transient demand contributed to exceeding high-end 2025 guidance.

Financial highlights

• 2025 Adjusted EBITDA: $297.6M; Adjusted FFO per share: $1.08 (record); free cash flow per share: $0.69, up 6% over 2024 and 22% since 2023.

• Q4 comparable RevPAR was $201.83 (down 0.3% year-over-year); full-year comparable RevPAR was $207.38 (up 0.4%).

• Q4 comparable Total RevPAR was $311.00 (up 0.6%); full-year comparable Total RevPAR was $319.06 (up 1.2%).

• Q4 comparable Hotel Adjusted EBITDA was $76.6 million (up 3.7%); full-year comparable Hotel Adjusted EBITDA was $316.5 million (up 1.1%).

• Food & beverage revenues up 1.4% in Q4, with margins expanding 120 bps and profits up over 5%.

Outlook and guidance

• 2026 guidance: comparable RevPAR growth of 1.0%–3.0%, comparable Total RevPAR growth of 1.25%–3.25%.

• 2026 Adjusted EBITDA expected between $287 million and $302 million; Adjusted FFO per share between $1.09 and $1.16.

• Free cash flow per share projected to rise 4% in 2026; Q1 2026 expected to be the toughest comparison, with flat RevPAR.

• Quarterly dividend for 2026 expected at $0.09 per share, with potential for a sub-dividend.

• Guidance assumes $25–26 million in corporate expenses and $57.5–58.5 million in cash interest expense.