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Mar 31, 2025
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.
Revenue by Segment
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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