DiamondRock Hospitality's Q3 net income falls 16.3%, AFFO per share up 7.4%

DiamondRock Hospitality Co

06/11/2025 21:55

Overview

DiamondRock Q3 net income falls 16.3% yr/yr, adjusted EBITDA rises 2.7%

Adjusted FFO per share increases 7.4% yr/yr

Company repurchased 4.8 mln shares YTD, eliminating secured debt

Outlook

DiamondRock raises 2025 adjusted EBITDA guidance midpoint to $291 mln

Company expects 2025 adjusted FFO between $213 mln and $221 mln

DiamondRock sees 2025 adjusted FFO per share between $1.02 and $1.06

Result Drivers

DEMAND REBOUND - Short-term group and business transient demand boosted room revenues

OUT-OF-ROOM REVENUE GROWTH - Robust banquet and catering spend drove growth in out-of-room revenues

EFFICIENCY MEASURES - Expense growth controlled due to efficiency efforts by operators and asset management team

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
$0.10
Q3 Net Income
$20.10 mln
Q3 Adjusted FFO Per Share
$0.29
Q3 Adjusted RevPAR
$214.21


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 9.1% above its November 5 closing price of $8.18

The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nPn5JP1RWa

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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.)