DiamondRock Hospitality Q1 revenue rises, co lifts 2026 outlook

Overview

• US lodging REIT's Q1 adjusted FFO per share rose 15.8% yr/yr

• Comparable RevPAR for Q1 increased 2% yr/yr

• Company raised 2026 guidance and authorized new $300 mln share buyback program

Outlook

• DiamondRock raises 2026 adjusted EBITDA guidance to $296 mln-$308 mln from $287 mln-$302 mln

• Company now sees 2026 adjusted FFO at $233.5 mln-$245.5 mln, up from $227 mln-$242 mln

• DiamondRock expects 2026 comparable RevPAR growth of 1.5%-3.5%, up from 1%-3%

Result Drivers

• RENOVATION RETURNS - Co said recent hotel renovations contributed to improved operating performance and returns

• OUT-OF-ROOM REVENUE GROWTH - Q1 comparable total RevPAR rose 2.5%, driven by a 3.4% increase in out-of-room revenues

• MARGIN EXPANSION - Q1 comparable hotel adjusted EBITDA margin rose 127 bps, reflecting improved cost controls and operating efficiency

Company press release: ID:nPn8gTBLfa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy"

• Wall Street's median 12-month price target for Diamondrock Hospitality Co is $11.00, about 7.3% above its April 29 closing price of $10.25

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 18 three months ago

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