Brief: Diamondrock Hospitality Q2 Adjusted FFO Per Share USD 0.35

DiamondRock Hospitality Co

07/08/2025 21:05

Overview

DiamondRock Q2 net income rises 73.8% yr/yr to $38.4 mln

Completed $1.5 bln refinancing, no debt maturities until 2028, repurchased 3.6 mln shares YTD

Outlook

DiamondRock raises midpoint of 2025 Adjusted EBITDA guidance

Company expects full-year Adjusted FFO per share between $0.96 and $1.06

DiamondRock anticipates stabilization in travel patterns in high-end portfolio

Company sees out-of-room revenues as bright spot in second half of 2025

Result Drivers

OUT-OF-ROOM REVENUES - Co attributes stronger than expected total RevPAR to a 3.1% increase in out-of-room revenues

PROPERTY TAX IMPACT - Larger than anticipated property tax increase in Chicago affected EBITDA margins, but excluding this, margins expanded by 30 basis points

REFINANCING - Completed $1.5 bln refinancing, extending debt maturities and increasing financial flexibility

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 EPS
$0.18
Q2 Net Income
$38.40 mln
Q2 Adjusted FFO Per Share
$0.35
Q2 Adjusted RevPAR
$226.95


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 8 "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 $9.00, about 15.8% above its August 6 closing price of $7.58

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nPn43NP1Za

(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.)