Q4 2025 Diamondrock Hospitality Co Earnings Call Transcript
Key Points
- Diamondrock Hospitality Co (DRH) finished 2025 ahead of guidance estimates, delivering corporate adjusted EBITDA of $297.6 million and adjusted FFO per share of $1.08.
- The company reported a 6% increase in free cash flow per share over 2024 and a 22% increase since 2023.
- Food and Beverage revenues increased for the third consecutive quarter, with margins expanding by 120 basis points.
- Out-of-room revenue per occupied room at resorts increased nearly 7%, showing strong growth in the fourth quarter.
- Diamondrock Hospitality Co (DRH) has a simple capital structure with no debt maturities until 2029, providing financial stability.
- Comparable RevPAR declined 30 basis points in the fourth quarter, with occupancy declining 130 basis points year-over-year.
- Group revenue declined 1% and leisure transient revenue declined 2.5% in the fourth quarter.
- The Federal government shutdown negatively impacted the fourth-quarter performance, particularly affecting group room revenues.
- First-quarter 2026 RevPAR is expected to be flat compared to 2025, indicating a challenging start to the year.
- Limited snowfall in ski markets and renovation displacement at certain properties negatively impacted resort RevPAR.
Good day, and thank you for standing by. Welcome to the DiamondRock Hospitality Company fourth-quarter 2025 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Briony Quinn, Executive Vice President and Chief Financial Officer. Please go ahead.
Good morning, everyone, and welcome to DiamondRock fourth-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.
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