Diamondrock Hospitality Company Stock Earnings Reports

DiamondRock reported a stronger-than-expected Q1 2026: comparable RevPAR +2.0%, total RevPAR +2.5%, corporate adjusted EBITDA $60.6M and adjusted FFO per share $0.22. FFO margin improved +225 bps and trailing-12-month free cash flow per share rose 19% to $0.75. Resorts outperformed urban hotels (resort RevPAR +3.6%), driven by strong out-of-room spend (resort room spend ~ $320/night) and successful ROI renovations (notably Sedona, with total RevPAR +23% and hotel EBITDA +67% vs. Q1 2024). Expense discipline is a key focus: total operating expense growth <1%, wages & benefits +0.7%, and margin expansion of 127 bps for the quarter. Balance sheet: conservative capital structure with no maturities until 2029, no secured/convertible debt, and active capital recycling (one hotel under contract, expected close in Q2). Capital plan unchanged: target CapEx ~ $80M–$100M/year (7%–9% of revenue) with continued emphasis on ROI projects and selective asset sales; share repurchases viewed as the most appealing use of incremental capital. Guidance raised: 2026 RevPAR outlook now +1.5% to +3.5% (up 50 bps), adjusted EBITDA $296M–$308M, adjusted FFO/share $1.12–$1.18, and expected ~7% free cash flow per share growth for 2026. Management highlighted trends: strong performance at $300+ ADR properties, durable consumer out-of-room spending, improving group pickup across key markets, favorable insurance renewals, and ongoing execution of DiamondRock 2.0 transformation initiatives.