DiamondRock Hospitality Q2 net income rises, lifts FY outlook

DiamondRock Hospitality

30/07/2026 21:22

Overview
US lodging REIT's Q2 net income and adjusted EBITDA rose sharply yr/yr
Company raised full-year 2026 guidance and increased quarterly dividend by 22%
Q2 results aided by $6.9 mln Chicago property tax settlement and broad-based demand

Outlook
DiamondRock raises 2026 Adjusted EBITDA guidance to $310 mln-$320 mln from $290.2 mln-$302.2 mln
Company lifts 2026 Adjusted FFO guidance to $245.5 mln-$255.5 mln from $228.4 mln-$240.4 mln
DiamondRock expects 2026 comparable RevPAR growth of 2.5%-4.0%, up from 1.5%-3.5% previously

Result Drivers
BROAD DEMAND - Co said Q2 performance was driven by broad-based strength in both group and transient demand, with additional benefit from the World Cup in several markets
EXPENSE CONTROL - Overall hotel expense growth was held to just 1.8%, supporting margin expansion
PROPERTY TAX SETTLEMENT - $6.9 mln gain from Chicago property tax appeals boosted Q2 Comparable Hotel Adjusted EBITDA and margins

Company press release: ID:nPnpz4dfa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 ADJ-EBITDA
 
$107.89 mln
 
Q2 Adjusted FFO Per Share
 
$0.44
 
Q2 Adjusted RevPAR
 
$240.79
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the specialized reits peer group is "buy"
Wall Street's median 12-month price target for Diamondrock Hospitality Co is $12.50, about 4.8% below its July 29 closing price of $13.14
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 18 three months ago

Reuters Recommended Reads
July 28 - Hilton raises annual room revenue growth forecast on World Cup, travel demand
July 30 - Xenia Hotels Q2 adjusted FFO per share rises on higher average daily rate
July 30 - Hyatt Hotels Q2 adjusted EPS beats estimates on  luxury, upper upscale hotels demand

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)