Urban Portfolio Performance
The urban portfolio achieved a 3% RevPAR growth with strong performances in San Francisco, San Diego, New York, Boston, and Chicago. Food and beverage revenues increased over 5%, with a total expense growth of 5.7%, which, excluding the property tax increase in Chicago, would have resulted in a margin growth of approximately 95 basis points.
Successful Refinancing and Share Repurchase Program
DiamondRock successfully refinanced its senior unsecured credit facility, increasing its size to $1.5 billion. The company has repurchased 3.6 million shares year-to-date for $27.3 million at a cap rate of just under 10% and has $146.8 million remaining on its share repurchase authorization.
Strong Group Revenue Setup for 2026
Group revenue pace for 2026 is currently up 12%, providing a strong setup for future performance. Group typically accounts for approximately 30% of DiamondRock's portfolio revenue.
Food and Beverage Profit Growth
Food and beverage revenues increased by 3.1%, with profit growing over 6% and margins increasing by 105 basis points due to strategic menu pricing and operational refinements.
Increase in Free Cash Flow Per Share
Free cash flow per share for the trailing 12 months increased approximately 4.5% to $0.63 per share.