Q3 2025 Diamondrock Hospitality Co Earnings Call Transcript
Key Points
- Diamondrock Hospitality Co (DRH) reported corporate adjusted EBITDA of $79.1 million and adjusted FFO per share of $0.29, both exceeding expectations.
- Out-of-room revenues increased by 5.1%, contributing to a total RevPAR growth of 1.5%.
- Food and beverage revenues increased by 4%, with banquet and catering revenues up nearly 8%, and F&B margins expanded by 180 basis points.
- The company successfully refinanced and extended maturities under its senior unsecured credit facility, resulting in a fully unencumbered portfolio by secured debt.
- Diamondrock Hospitality Co (DRH) repurchased 1.5 million common shares during the third quarter, utilizing free cash flow effectively.
- Comparable RevPAR declined by 0.3%, with occupancy flat year-over-year and ADR down by 0.4%.
- Leisure transient revenue declined by 1.5%, and group room revenue decreased by 3.5%.
- RevPAR at resorts declined by 2.5%, although total RevPAR increased slightly by 0.4%.
- The company faced tough group revenue comparisons due to fewer city-wide conventions and last year's Democratic National Convention.
- The federal government shutdown has introduced uncertainty, impacting short-term group pick-up and transient guest arrivals.
Good day, and thank you for standing by. Welcome to the DiamondRock Hospitality Company Third Quarter 2025 Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to turn the conference over to Briony Quinn. Please go ahead.
Good morning, everyone, and welcome to DiamondRock's Third Quarter 2025 Earnings Call and Webcast. Joining me today is Jeff Donnelly, our Chief Executive Officer; and Justin Leonard, our President and Chief Operating Officer.
Before we begin, let me remind everyone that many of our comments today are not historical facts and are considered to be forward-looking statements under federal securities laws. As described in our filings with the SEC, these statements are subject to numerous risks and uncertainties that could cause future results to differ materially from what we discuss today.
In addition, on today's call, we will discuss certain non-GAAP
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