DiamondRock Hospitality Company (DRH) Q4 2025 earnings summary

Executive summary

• Finished 2025 ahead of guidance, achieving record FFO per share and outperforming peers by over 1,300 basis points in total shareholder return.

• Fourth quarter net income attributable to common stockholders rose 273.7% year-over-year to $23.8 million ($0.12 per diluted share).

• Celebrated 20th year as a public REIT, with a disciplined focus on free cash flow per share growth and capital allocation.

• Portfolio repositioning, cost discipline, and a rebound in transient demand contributed to exceeding high-end 2025 guidance.

• Announced board leadership transition with Bruce D. Wardinski becoming Chairman.

Financial highlights

• 2025 Adjusted EBITDA: $297.6M; Adjusted FFO per share: $1.08; free cash flow per share: $0.69, up 6% over 2024.

• Q4 2025 Adjusted EBITDA: $71.9M; Adjusted FFO per share: $0.27, up 12.5% year-over-year.

• Q4 comparable RevPAR was $201.83 (down 0.3% year-over-year); full-year comparable RevPAR was $207.38 (up 0.4%).

• Q4 comparable Total RevPAR was $311.00 (up 0.6%); full-year comparable Total RevPAR was $319.06 (up 1.2%).

• Full-year net income attributable to common stockholders was $91.6 million, up 139.8% year-over-year.

Outlook and guidance

• 2026 RevPAR growth expected at 1%-3%, with total RevPAR growth 25 bps higher.

• 2026 Adjusted EBITDA guidance: $287M-$302M; FFO per share: $1.09-$1.16.

• Free cash flow per share projected to rise 4% in 2026.

• Q1 2026 expected to be the toughest comparison, with flat RevPAR.

• Guidance assumes $25–26 million in corporate expenses and $57.5–58.5 million in cash interest expense.