#United States #Bethesda #DiamondRock Hospitality #Westin D.C. City Center #Hotel Champlain Burlington

DiamondRock Hospitality Company Reports Impressive Financial Results for 2024

On February 27, 2025, DiamondRock Hospitality Company, a recognized lodging real estate investment trust (REIT) known for its ownership of 36 high-end hotels and resorts, announced its financial results for both the fourth quarter and the entire year of 2024. Despite weathering challenges such as a significant impairment loss, the results indicate a resilient hotel portfolio with several positive growth indicators.

Fourth Quarter 2024 Highlights

In the fourth quarter, the company's operations yielded a total revenue of $280.5 million, an impressive increase of 5.7% Year-over-Year (YoY). The comparable Revenue per Available Room (RevPAR) also increased by 5.4%, reaching $200.46. However, the net loss attributable to common stockholders stood at $13.7 million, or ($0.07) per share, compared to a profit reported during the previous year's same period. This loss was primarily attributed to a $32.6 million impairment loss associated with the Westin Washington, D.C. City Center, which the company later sold for $92.0 million in early 2025.

Full Year 2024 Financial Performance

For the entire year, DiamondRock reported total comparable revenues of approximately $1.1 billion, marking a 4.3% increase from 2023. Adjusted funds from operations (FFO) per share also experienced growth, rising by 8.6% to $1.01 compared to the previous performance metrics. Despite challenges, including substantial severance costs related to executive transitions and the aforementioned impairments, the company secured a net income of $38.2 million, revealing a decline from the previous year's $76.5 million primarily due to extraordinary expenses.

Strategic Moves in 2025

DiamondRock's strategic decisions also play a vital role in aligning its portfolio for future growth. Notably, it completed key acquisitions and rebranding efforts in 2024 to enhance its market position. One significant move was the acquisition of the AC Hotel Minneapolis Downtown, completed for $30 million. Furthermore, it successfully repositioned the Hilton Burlington Lake Champlain as the Hotel Champlain Burlington under the Curio Collection by Hilton brand. This decision exemplifies the company's commitment to optimizing and energizing its portfolio to cater to evolving market demands.

Balance Sheet and Future Outlook

As of December 31, 2024, the company reported total outstanding debt of $1.1 billion, featuring a favorable liquidity position of $584.3 million, including $81.4 million in unrestricted corporate cash. Moving into 2025, management anticipates a positive growth trajectory, reinforced by focused capital improvements estimated at between $85 million and $95 million. The anticipated continuation of favorable growth trends in urban hotels, bolstered by ongoing renovations and rebranding initiatives, suggests promising financial outcomes in the forthcoming year.

Conclusion

CEO Jeffrey J. Donnelly emphasized that they expect revenue growth to enhance steadily as their urban hotels ramp-up activities and as they continue their strategy of reinvesting in higher return opportunities from other assets. The performance in the fiscal year of 2024 sets a solid foundation for DiamondRock as it transitions into 2025, reflecting robust operational management and strategic foresight in an ever-evolving hospitality landscape.

For additional details on DiamondRock Hospitality Company’s financial metrics and operational insights, please refer to their official investor relations website.