In This Article:
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Comparable RevPAR Growth: Increased 2% over 2024.
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Total RevPAR Growth: Increased 1.6%.
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Urban Portfolio RevPAR Growth: Increased 5%.
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Food and Beverage Revenue (Urban Hotels): Declined 3.3% year-over-year; excluding Chicago Marriott, increased 5.5%.
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Total Expenses (Urban Portfolio): Increased 2.1%.
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Hotel-Adjusted EBITDA Margin (Urban Portfolio): Increased 54 basis points.
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Resort Portfolio Comparable RevPAR Decline: Decreased 2.1% over 2024.
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Resort Portfolio Total RevPAR Decline: Decreased 40 basis points.
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Florida Resorts RevPAR Decline: Decreased 5.9%.
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Hotel-Adjusted EBITDA Margin (Resorts): Increased 76 basis points to 32.5%.
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Group Room Revenues: Increased 10.4% over last year.
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Hotel Adjusted EBITDA: $61.3 million, reflecting 2.2% growth over 2024.
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Corporate Adjusted EBITDA: $56.1 million, flat to last quarter.
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Adjusted FFO: $0.19 per share, 5.6% over 2024.
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Free Cash Flow Per Share: Increased 10% to $0.63 per share over the prior four-quarter period.
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Quarterly Dividend: $0.08 per share.
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Share Repurchase: 1.4 million shares at an average price of $7.85.
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2025 FFO Per Share Guidance: Range of $0.94 to $1.06 per share.
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2025 RevPAR Outlook: Revised to a range of -1% to +1% growth.
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2025 Corporate Adjusted EBITDA Guidance: Range of $270 million to $295 million.
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2025 Adjusted FFO Guidance: Range of $198 million to $223 million.
Release Date: May 02, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Diamondrock Hospitality Co (NYSE:DRH) reported a 2% increase in comparable RevPAR over 2024, driven primarily by strong performance in their urban footprint.
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Hotel-adjusted EBITDA margins increased by 54 basis points, indicating improved operational efficiency.
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The company successfully managed costs in their resort portfolio, reducing overall expenses by 2.4% and expanding hotel-adjusted EBITDA margin by 76 basis points.
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Group room revenues increased by 10.4% over the previous year, with a 5.2% increase in room nights, highlighting strong group segment performance.
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Diamondrock Hospitality Co (NYSE:DRH) completed several renovation projects, such as the Westin San Diego Bayview, which saw a 28% increase in RevPAR and a 65% increase in NOI year-over-year.
Negative Points
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Food and beverage revenue at urban hotels declined by 3.3% year-over-year, primarily due to a shift in group program dynamics at the Chicago Marriott.
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Comparable RevPAR in the resort portfolio declined by 2.1% over 2024, with total RevPAR down slightly by 40 basis points.
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The company experienced mid-single-digit revenue declines at Florida resorts, with first-quarter RevPAR down 5.9% and total RevPAR down 4.0%.
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Group lead generation remains strong, but closure rates have been softer recently due to the unsettled macroeconomic environment.
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Diamondrock Hospitality Co (NYSE:DRH) revised their full-year 2025 RevPAR outlook to a range of minus 1% to plus 1% growth, reflecting a more cautious stance on future performance.