Q4 2024 Diamondrock Hospitality Co Earnings Call Transcript
Key Points
- Diamondrock Hospitality Co (DRH) reported a stronger-than-expected fourth-quarter performance with a 5.5% increase in comparable total RevPAR over 2023.
- Urban hotels showed significant growth with an 8.2% increase in RevPAR, driven by a 5.4% increase in average daily rate.
- 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%.
- 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%.
- The company plans to increase its regular quarterly dividend to $0.08 per share in 2025, up from $0.03 per share in 2024.
- Fourth-quarter results at resort hotels were mixed, with a 150 basis point decline in RevPAR, particularly impacted by Florida's market challenges.
- 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.
- Florida resorts experienced a 5.8% decline in RevPAR, attributed to post-pandemic challenges and market headwinds.
- The company anticipates a $1.2 million EBITDA disruption in the first half of 2025 due to the redevelopment of Orchards Inn Sedona.
- Diamondrock Hospitality Co (DRH) expects RevPAR growth to be modest at 1% to 3% for 2025, with continued softness in leisure markets.
Good day, and thank you for standing by. Welcome to the DiamondRock Hospitality Company fourth-quarter and full-year 2024 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, Chief Financial Officer. Please go ahead.
Good morning, everyone, and welcome to DiamondRock's fourth-quarter 2024 earnings call and webcast. Joining me on today's call 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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