Diamondrock Hospitality | 8-K: FY2026 Q2 Revenue: USD 318.29 M

Revenue: As of FY2026 Q2, the actual value is USD 318.29 M.

EPS: As of FY2026 Q2, the actual value is USD 0.44.

EBIT: As of FY2026 Q2, the actual value is USD 106.88 M.

Second Quarter 2026 Financial Highlights

• Net Income Attributable to Common Stockholders was $90.5 million, an increase of 135.7% compared to the second quarter of 2025.
• Adjusted EBITDA was $107.9 million, an increase of 19.2% compared to the second quarter of 2025.
• Adjusted FFO was $91.8 million, an increase of 27.0% compared to $72.3 million in the second quarter of 2025.
• Adjusted FFO per Diluted Share was $0.44, an increase of 25.7% compared to the second quarter of 2025.
• Comparable Hotel Adjusted EBITDA was $113.2 million, an increase of 20.9% compared to the second quarter of 2025, which includes a $6.9 million contribution from property tax appeals for its Chicago hotels.
• Comparable Hotel Adjusted EBITDA Margin was 35.76%, an increase of 457 basis points compared to the second quarter of 2025, or 239 basis points excluding the property tax settlements.

Six Months Ended June 30, 2026 Financial Highlights

• Net Income Attributable to Common Stockholders was $104.9 million, an increase of 119.5% compared to $47.8 million for the same period in 2025.
• Adjusted EBITDA was $168.5 million, an increase of 14.9% compared to $146.6 million for the same period in 2025.
• Adjusted FFO was $137.9 million, an increase of 23.3% compared to $111.8 million for the same period in 2025.
• Adjusted FFO per Diluted Share was $0.67, an increase of 26.4% compared to $0.53 for the same period in 2025.
• Comparable Hotel Adjusted EBITDA was $179.1 million, an increase of 15.8% compared to $154.7 million for the same period in 2025.
• Comparable Hotel Adjusted EBITDA Margin was 31.37%, an increase of 314 basis points compared to the same period in 2025.

Operational Metrics (Comparable Operating Results)

Three Months Ended June 30, 2026 vs. 2025

• ADR was $308.50, up 4.6% from $294.88.
• Occupancy was 78.1%, up 1.8% from 76.3%.
• RevPAR was $240.79, up 7.0% from $225.03.
• Total RevPAR was $370.06, up 5.6% from $350.49.
• Room Revenues were $206.0 million, up 7.0% from $192.6 million.
• Total Revenues were $316.6 million, up 5.5% from $300.0 million.
• Hotel Operating Expenses were $203.3 million, down -1.5% from $206.4 million.

Six Months Ended June 30, 2026 vs. 2025

• ADR was $298.24, up 3.8% from $287.45.
• Occupancy was 72.2%, up 0.7% from 71.5%.
• RevPAR was $215.30, up 4.8% from $205.47.
• Total RevPAR was $335.44, up 4.2% from $321.94.
• Room Revenues were $366.4 million, up 4.7% from $349.8 million.
• Total Revenues were $570.9 million, up 4.2% from $548.1 million.
• Hotel Operating Expenses were $391.8 million, down -0.4% from $393.4 million.

Hotel Disposition

• On May 1, 2026, DiamondRock Hospitality Company sold the Courtyard New York Manhattan/Fifth Avenue for $33.0 million.

Capital Expenditures

• DiamondRock Hospitality Company invested approximately $40.3 million in capital improvements during the six months ended June 30, 2026.
• The Company expects to invest approximately $75 million to $85 million in capital improvements at its hotels in 2026.

Balance Sheet

• As of June 30, 2026, total debt outstanding was $1.1 billion, with a weighted average interest rate of 4.9%.
• The Company had $400 million available under its undrawn revolving credit facility and approximately $106.0 million of unrestricted cash on hand.

Common Share Repurchase Program

• On April 28, 2026, the Board authorized a new $300.0 million share repurchase program, effective May 1, 2026, replacing the previous program.
• During Q2 2026, 0.2 million shares were repurchased at an average price of $9.79 per share, totaling $1.9 million.
• DiamondRock Hospitality Company has $299.4 million of remaining capacity under the current program.

Dividends

• The Board declared a Q2 cash dividend of $0.09 per share, paid on July 14, 2026.
• A Q3 2026 cash dividend of $0.11 per share was declared on July 30, 2026, representing a 22% increase over the Q2 dividend.
• The Company expects to declare regular quarterly dividends of $0.11 per common share for the remainder of 2026, plus a potential stub dividend in Q4 2026.

Outlook / Guidance

DiamondRock Hospitality Company is raising its full-year 2026 guidance due to better-than-expected Q2 results, an improved booking pace, and the full-year benefit from Chicago property tax appeals. The updated guidance projects Comparable RevPAR Growth of 2.5% to 4.0%, Comparable Total RevPAR Growth of 2.75% to 4.25%, Adjusted EBITDA between $310.0 million and $320.0 million, and Adjusted FFO between $245.5 million and $255.5 million. Adjusted FFO per share is forecast to be $1.18 to $1.23, based on assumptions including $27.0 million in corporate expenses and $58.5 million to $59.5 million in cash interest expense.