DiamondRock reports Q1 AFFO 19c, consensus 17c

Reports Q1 revenue $251.8, consensus $256.1M. Reports Q1 Comparable RevPAR $186.20, an increase of 2.0% compared to last year. “Q1 operating results were in line with our expectations, with group revenues increasing over 10% and business transient revenues increasing over 9% to compared to last year. This strong revenue growth coupled with cost savings initiatives offset the softness at our Florida resorts in the Q1 resulting in comparable first quarter RevPAR growth of 2.0% and comparable Hotel Adjusted EBITDA growth of 2.2%. The rise in macroeconomic uncertainly has had only a mild effect on performance thus far. Encouragingly, near-term leisure booking pace remains in line with prior year trends, however group revenue pickup in the second half of 2025 has been tempered by an unsettled business environment. In light of this, we are lowering our top line outlook for 2025 by 200 basis points, but maintaining our previous outlook for Adjusted FFO per share. We remain optimistic DiamondRock (DRH) can drive earnings growth through continued operating performance and deliberate action on accretive capital recycling. We have repurchased $15.9M of common shares utilizing a portion the proceeds from the sale of the Westin Washington, D.C., which exemplifies our strategy to harvest capital from low free cash flow yield assets and redeploy proceeds into higher return opportunities.” said Jeffrey J. Donnelly, CEO of DiamondRock Hospitality Company