DiamondRock Hospitality Q1 revenue rises, co lifts 2026 outlook

DiamondRock Hospitality Co

30/04/2026 21:40

Overview

US lodging REIT's Q1 adjusted FFO per share rose 15.8% yr/yr

Comparable RevPAR for Q1 increased 2% yr/yr

Company raised 2026 guidance and authorized new $300 mln share buyback program

Outlook

DiamondRock raises 2026 adjusted EBITDA guidance to $296 mln-$308 mln from $287 mln-$302 mln

Company now sees 2026 adjusted FFO at $233.5 mln-$245.5 mln, up from $227 mln-$242 mln

DiamondRock expects 2026 comparable RevPAR growth of 1.5%-3.5%, up from 1%-3%

Result Drivers

RENOVATION RETURNS - Co said recent hotel renovations contributed to improved operating performance and returns

OUT-OF-ROOM REVENUE GROWTH - Q1 comparable total RevPAR rose 2.5%, driven by a 3.4% increase in out-of-room revenues

MARGIN EXPANSION - Q1 comparable hotel adjusted EBITDA margin rose 127 bps, reflecting improved cost controls and operating efficiency

Company press release: ID:nPn8gTBLfa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Adjusted FFO Per Share
$0.22
Q1 Adjusted RevPAR
$190.01


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 $11.00, about 7.3% above its April 29 closing price of $10.25

The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 18 three months ago

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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.)