#Bethesda #hospitality #Q1 2025 #DiamondRock

DiamondRock Hospitality Company: First Quarter 2025 Results

Overview
DiamondRock Hospitality Company (NYSE: DRH) has unveiled its financial results for the first quarter of 2025, revealing substantial progress across multiple key performance metrics. With 36 premium hotels in its portfolio, the company has made impressive strides in revenue and profitability, signaling a strong recovery and strategic robustness in a fluctuating market.

Key Highlights

• - Net Income Growth: The company reported a net income of $9.4 million, which translates to $0.04 per diluted share, showcasing a remarkable increase of 59.3% from the same period last year.
• - Revenue Highlights: Comparative revenues reached $251.8 million, marking a 0.5% increase over the previous year. This growth is driven by an upswing in both group and transient business.
• - RevPAR Increase: Comparable Revenue per Available Room (RevPAR) improved by 2.0%, reaching $186.20, a significant upward trend amid evolving market conditions.

Adjusted Financial Metrics
The company's adjusted metrics were largely stable and reflected continued operational efficiency:

• - The Comparable Hotel Adjusted EBITDA grew by 2.2% to $61.3 million, despite industry-wide challenges.
• - The Comparable Hotel Adjusted EBITDA margin increased by 39 basis points to 24.36% compared to the first quarter of 2024.
• - Adjusted FFO per share saw a 5.6% bump, bringing it to $0.19.

Business Operations
During the first quarter, DiamondRock executed its strategy of enhancing earnings through effective management and capital allocation. Despite facing some softness in the performance of its Florida resorts, overall operational results aligned with its expectations. The company reported a notable rise in group revenues of over 10% and a 9% increase in business transient revenues compared to the previous year.

Chief Executive Officer Jeffrey J. Donnelly commented,