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Dec 31, 2024
DiamondRock Hospitality Q4 2024 Earnings Report
DiamondRock Hospitality Company reported a net loss in Q4 2024, primarily due to an impairment loss, despite increases in comparable revenues and RevPAR.
Key Takeaways
DiamondRock Hospitality Company reported a net loss of $13.7 million in the fourth quarter of 2024, a significant decrease from a net income of $8.5 million in the same period last year, primarily due to a $32.6 million impairment loss on the Westin Washington D.C. City Center. Despite the net loss, the company saw increases in comparable revenues by 5.7% and comparable RevPAR by 5.4%.
Net loss attributable to common stockholders was $13.7 million, or ($0.07) per diluted share, compared to net income of $8.5 million in Q4 2023.
Comparable Revenues increased by 5.7% to $280.5 million in Q4 2024.
Comparable RevPAR increased by 5.4% to $200.46 in Q4 2024.
The company completed the sale of the Westin Washington D.C. City Center for $92.0 million on February 19, 2025.
DiamondRock Hospitality
DiamondRock Hospitality
Forward Guidance
DiamondRock Hospitality Company expects continued growth from urban hotels and recently rebranded/renovated properties in 2025, with steadily improving growth throughout the year. The company anticipates full year 2025 Adjusted EBITDA between $275 million and $300 million, and Adjusted FFO per share between $0.94 and $1.06.
Positive Outlook
- Continued growth expected from urban hotels in 2025.
- Completed rebrandings of Hotel Champlain and The Dagny are expected to drive additional growth.
- Renovations at Bourbon Orleans and Westin San Diego are expected to drive additional growth.
- Resort hotels are focused on driving incremental group demand and increasing operating efficiencies.
- Steadily improving growth is expected throughout the year.
Challenges Ahead
- Continued softness from the leisure customer is anticipated for resort hotels.
- The guidance does not account for any unanticipated impacts to the business or operations.
- Actual results may differ materially from anticipated results due to various risks.
- The company is actively pursuing a financing transaction, and if unsuccessful, may use cash on hand and credit facility to address maturities.
- The guidance is based on specific assumptions for corporate expenses, interest expense, income tax expense, and diluted weighted average common shares and units.