In This Article:
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Comparable Total RevPAR: Increased 5.5% over 2023.
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Urban Hotels RevPAR: Increased 8.2% with a 5.4% increase in average daily rate.
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December RevPAR Growth: Up 13.2% in urban markets.
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Resort Hotels RevPAR: Declined 150 basis points in the quarter.
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Florida Resorts RevPAR: Declined 5.8%.
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Chico Hot Springs RevPAR: Grew nearly 18% with over 12% ADR growth.
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Group Room Revenues: Increased 8.1% over 2023.
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Hotel Adjusted EBITDA: $75.9 million, reflecting 16.4% growth over 2023.
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Corporate Adjusted EBITDA: $68.7 million, representing almost 20% growth over 2023.
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Adjusted Funds from Operations (AFFO): $0.24 per share, 33% increase over 2023.
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Common Dividends for 2024: Total of $0.32 per share.
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2025 Expected RevPAR Growth: 1% to 3% for the year.
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2025 Corporate Adjusted EBITDA Guidance: $275 million to $300 million.
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2025 Adjusted FFO Guidance: $199 million to $224 million.
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2025 Adjusted FFO per Share Guidance: $0.94 to $1.06.
Release Date: February 28, 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 stronger-than-expected fourth-quarter performance with a 5.5% increase in comparable total RevPAR over 2023.
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Urban hotels showed significant growth with an 8.2% increase in RevPAR, driven by a 5.4% increase in average daily rate.
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Group room revenues increased by 8.1% over 2023, with urban hotels seeing a 10.2% increase, boosting total food and beverage revenue by 6.4%.
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Hotel adjusted EBITDA for the fourth quarter was $75.9 million, reflecting a 16.4% growth over 2023, with corporate adjusted EBITDA growing by nearly 20%.
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The company plans to increase its regular quarterly dividend to $0.08 per share in 2025, up from $0.03 per share in 2024.
Negative Points
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Fourth-quarter results at resort hotels were mixed, with a 150 basis point decline in RevPAR, particularly impacted by Florida's market challenges.
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The company faces upcoming debt maturities, including three mortgage loans totaling nearly $300 million in 2025 and a $300 million term loan in early 2026.
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Florida resorts experienced a 5.8% decline in RevPAR, attributed to post-pandemic challenges and market headwinds.
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The company anticipates a $1.2 million EBITDA disruption in the first half of 2025 due to the redevelopment of Orchards Inn Sedona.
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Diamondrock Hospitality Co (NYSE:DRH) expects RevPAR growth to be modest at 1% to 3% for 2025, with continued softness in leisure markets.
Q & A Highlights
Q: Can you give us a sense of your leisure, business travel, and group revenue growth expectations that aggregate up to the 1% to 3% RevPAR guide? A: Jeff Donnelly, CEO: A lot of it relates to our footprint. In Florida, where our properties are more popular priced, we've seen more weakness. Outside Florida, our properties are more luxury-oriented, facing fewer headwinds. We rank group as better than business travel, which is better than leisure. We budget more by hotel location than by segment.