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DiamondRock Hospitality's Series A Stock Redemption

DiamondRock Hospitality Company has made a significant announcement regarding its 8.250% Series A Cumulative Redeemable Preferred Stock. The company will redeem all 4.76 million outstanding shares on December 31, 2025. This move underscores the company's financial strategy and commitment to maximizing shareholder value.

Financial Implications

To execute this stock redemption, DiamondRock will leverage approximately $121.5 million from its available cash resources. Shareholders will receive a redemption price of $25.00 per share, coupled with accrued dividends up to the redemption date. This important step not only highlights DiamondRock’s robust investment position but also aims to provide shareholders with immediate returns on their investments.

In a recent board meeting, held on November 19, 2025, the directors declared a quarterly dividend amounting to $0.515625 per share on the Series A Preferred Stock, which will also be payable on December 31, 2025, for shareholders recorded by December 19, 2025. This dividend declaration signals a healthy cash flow and opens an opportunity for current investors seeking returns during the holiday season.

Transitioning Away from the Preferred Stock

Beginning January 1, 2026, the Series A Preferred Stock will be classified as no longer outstanding, and the accrual of dividends on these securities will cease. This decision aligns with DiamondRock's vision for future growth and operational efficiency, releasing them from dividend obligations that limit financial flexibility during expansion.

For seamless processing of the redemption, the company is engaging Broadridge Corporate Issuer Solutions, LLC as its redemption agent. Interested parties may reach out to Broadridge at their listed contact number for any inquiries regarding the redemption process.

About DiamondRock Hospitality Company

DiamondRock Hospitality Company operates as a self-advised real estate investment trust (REIT), focusing on investments in high-quality hotels situated in prime leisure destinations and significant gateway markets across the United States. Currently, the portfolio encompasses 36 distinguished hotels and resorts, boasting approximately 9,600 rooms. The organization adopts a diversified strategy, collaborating with renowned global brands and independent boutique hotels to capture a wider market demographic.

Future Outlook

DiamondRock's successful execution of this stock redemption demonstrates its commitment to shareholder value and overall financial health. As the travel and hospitality market rebounds, their strategic positioning could provide substantial growth opportunities moving forward. Stakeholders should remain attentive to the evolving market dynamics and DiamondRock’s future initiatives, as the company boldly navigates its path in the hospitality investment landscape.

This announcement serves as a reminder of the ever-valuable connection between effective cash management and successful investor relations. As DiamondRock Hospitality Company continues to evolve, its stakeholders can expect a calculated approach to corporate governance and shared growth in the years to come.

For further insight into DiamondRock’s current projects and operational updates, you can visit their official website or follow them on their investor relations channels.

By staying informed, investors can strategically align their portfolios to benefit from ongoing innovations by DiamondRock Hospitality Company.