Q1 2025 Diamondrock Hospitality Co Earnings Call Transcript
Key Points
- Diamondrock Hospitality Co (DRH) reported a 2% increase in comparable RevPAR over 2024, driven primarily by strong performance in their urban footprint.
- Hotel-adjusted EBITDA margins increased by 54 basis points, indicating improved operational efficiency.
- 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.
- Group room revenues increased by 10.4% over the previous year, with a 5.2% increase in room nights, highlighting strong group segment performance.
- Diamondrock Hospitality Co (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.
- 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.
- Comparable RevPAR in the resort portfolio declined by 2.1% over 2024, with total RevPAR down slightly by 40 basis points.
- The company experienced mid-single-digit revenue declines at Florida resorts, with first-quarter RevPAR down 5.9% and total RevPAR down 4.0%.
- Group lead generation remains strong, but closure rates have been softer recently due to the unsettled macroeconomic environment.
- Diamondrock Hospitality Co (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.
Hello everyone and welcome to DiamondRock Hospitality Company. First quarter 2025 earnings conference call. (Operator Instructions). Please be advised that today's conference is being recorded.
Now it's my pleasure to turn the call over to the EVP Chief Financial Officer and Treasurer, Briony Quinn. The floor is yours.
Good morning, everyone, and welcome to DiamondRock's first 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 discussed today.
In addition, on today's call, we
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