DiamondRock Hospitality Company (DRH) Q1 2026 earnings summary

Executive summary

• First quarter 2026 results exceeded expectations, with strong performance in resorts and high-ADR hotels, robust margin expansion, and free cash flow growth despite tough comps and weather disruptions.

• Portfolio comprised 35 premium hotels with 9,595–9,600 rooms in 26 U.S. markets, with nearly 40% operated independently and the rest under major brands.

• Strategy centers on asset management, prudent leverage, disciplined capital allocation, and ROI-driven renovations to drive long-term returns.

• Leadership transition on the board, with Bill McCarten retiring and Bruce Wardinski appointed chairman, and ongoing focus on culture, efficiency, and shareholder alignment.

Financial highlights

• Q1 2026 total revenues were $258.2 million, up 1.3% year-over-year; net income attributable to common stockholders was $14.5 million ($0.07 per diluted share), up 54.3% and 75.0% year-over-year, respectively.

• Comparable RevPAR increased 2.0% to $190.01, and Comparable Total RevPAR rose 2.5% to $298.95; ADR was $284.58, up 2.6%, with occupancy at 66.8%.

• Adjusted EBITDA reached $60.6 million (up 8.0%); Adjusted FFO per share was $0.22 (up 15.8%); FFO margin improved by 225 bps.

• Free cash flow per share on a trailing 12-month basis was $0.75, up 19% year-over-year.

• Hotel operating expenses grew less than 1%, with wages and benefits up just 0.7%.

Outlook and guidance

• 2026 guidance raised: Comparable RevPAR growth expected at 1.5%–3.5%, Comparable Total RevPAR at 1.75%–3.75%.

• Adjusted EBITDA guidance increased to $296M–$308M; Adjusted FFO per share guidance now $1.12–$1.18.

• Free cash flow per share growth projected at 7% for 2026.

• Quarterly dividend of $0.09 per share expected for the year, with potential for a step-up in Q4.

• Guidance remains measured due to macroeconomic and geopolitical uncertainties, including Middle East conflict, energy market volatility, and inflationary pressures.