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Mar 31
DiamondRock Hospitality Q1 2025 Earnings Report
DiamondRock Hospitality Company reported its first quarter 2025 results, with comparable RevPAR increasing by 2.0% and net income attributable to common stockholders rising by 59.3%.
Key Takeaways
DiamondRock Hospitality Company announced strong first quarter 2025 results, with comparable RevPAR increasing by 2.0% and comparable Hotel Adjusted EBITDA growing by 2.2%. Net income attributable to common stockholders saw a significant increase of 59.3%. The company also completed a hotel disposition and repurchased shares.
Net income attributable to common stockholders increased by 59.3% to $9.4 million, or $0.04 per diluted share.
Comparable RevPAR increased by 2.0% to $186.20.
Comparable Hotel Adjusted EBITDA increased by 2.2% to $61.3 million, with a margin increase of 39 basis points to 24.36%.
The company completed the sale of the Westin Washington D.C. City Center for $92.0 million and repurchased 2.1 million shares for approximately $15.9 million.
DiamondRock Hospitality
DiamondRock Hospitality
DiamondRock Hospitality Revenue by Segment
Revenue by Segment
Rooms Revenue
CapyFin.comFood and Beverage Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
The company is updating its full year 2025 guidance due to current macroeconomic uncertainty, lowering its top-line outlook for comparable RevPAR growth but maintaining its Adjusted FFO per share outlook.
Positive Outlook
- Maintaining previous outlook for Adjusted FFO per share.
- Optimistic about driving earnings growth through continued operating performance.
- Deliberate action on accretive capital recycling, exemplified by the Westin Washington D.C. sale.
- Repurchased common shares, utilizing proceeds from asset sales for higher return opportunities.
- Near-term leisure booking pace remains in line with prior year trends.
Challenges Ahead
- Lowering top line outlook for 2025 by 200 basis points.
- Current macroeconomic uncertainty has had a mild effect on performance.
- Moderating group revenue pickup for the remainder of the year.
- Unsettled business environment has tempered group revenue pickup in the second half of 2025.
- Anticipated results are subject to risks disclosed in SEC filings, which may cause actual results to differ materially.