DiamondRock Hospitality Posts $71.9M Q4 EBITDA, Records $297.6M Annual Adjusted EBITDA

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DiamondRock Hospitality posted Q4 Adjusted EBITDA of $71.9M and $0.27 FFO per share with comparable RevPAR down 30bps despite a 43-day federal shutdown. Full-year 2025 results set records with $297.6M Adjusted EBITDA and $1.08 FFO per share, and 2026 guidance targets $287M–$302M EBITDA and $1.09–$1.16 FFO.

1. Q4 Performance Highlights

In Q4, DiamondRock Hospitality achieved $71.9 million in corporate Adjusted EBITDA and $0.27 FFO per share, with comparable RevPAR down 30 basis points, ADR up 1.6% and occupancy down 130 basis points despite a 43-day federal government shutdown.

2. Full-Year 2025 Record Results

For full-year 2025, the company delivered record corporate Adjusted EBITDA of $297.6 million and $1.08 FFO per share, while free cash flow per share rose 6% to $0.69, comparable total RevPAR grew 1.2% and hotel Adjusted EBITDA increased 1.1%.

3. 2026 Guidance and Capital Allocation

Management set 2026 targets for RevPAR growth of 1%–3%, Adjusted EBITDA of $287M–$302M and FFO of $1.09–$1.16 per share, indicated it may be a net seller, allocated $80M–$90M for CapEx, plans continued share repurchases and quarterly $0.09 dividends.

4. Balance Sheet Simplification

The company simplified its capital structure by redeeming Series A preferred shares, now holds 70% floating-rate debt with no maturities until 2029, repurchased 4.8 million shares at an average $7.72 in 2025 and expects a potential fourth-quarter sub-dividend in 2026.

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