DRH · DiamondRock Hospitality Company

DiamondRock Hospitality reported strong first quarter 2026 results, with net income attributable to common stockholders rising 54.3% to $14.5 million, or $0.07 per diluted share, compared to the same period last year. Adjusted EBITDA grew 8.0% to $60.6 million, and Adjusted FFO per diluted share increased 15.8% to $0.22. Comparable RevPAR increased 2.0% to $190.01, driven by a 2.6% rise in ADR partially offset by a slight occupancy decline. Comparable Total RevPAR grew 2.5% to $298.95, supported by a 3.4% increase in out-of-room revenues. Comparable Hotel Adjusted EBITDA Margin expanded 127 basis points to 25.63%, reflecting effective cost management and renovation benefits. Management highlighted strong returns from recent renovations and meaningful margin expansion, noting that results exceeded expectations despite difficult comparisons and disruptive weather. The company raised its full-year 2026 guidance, now expecting Comparable RevPAR growth of 1.5% to 3.5%, Adjusted EBITDA of $296 million to $308 million, and Adjusted FFO per share of $1.12 to $1.18. The guidance increase reflects better-than-expected first quarter results and a favorable insurance renewal. Additionally, the company executed a new franchise agreement for the Westin Boston Seaport District effective January 1, 2027, and had one hotel under contract for sale. Subsequent to quarter end, the company repurchased 0.1 million shares at $9.38 per share, and the Board authorized a new $300 million share repurchase program. A quarterly dividend of $0.09 per share was declared. At the annual meeting held on April 28, 2026, all eight director nominees were elected, the advisory vote on executive compensation was approved, and KPMG LLP was ratified as independent auditor.