DiamondRock Hospitality Raises 2026 Guidance After Q1 Net Income Jumps 54%
DiamondRock Hospitality reported first quarter net income of $14.5 million, or $0.07 per diluted share, up 54.3% and 75% respectively, with Adjusted EBITDA of $60.6 million and Adjusted FFO per share rising 15.8% to $0.22. The company raised its 2026 guidance and approved a new $300 million share repurchase program.
1. First Quarter Results
DiamondRock reported net income attributable to common stockholders of $14.5 million, or $0.07 per diluted share, increases of 54.3% and 75% versus Q1 2025. Adjusted EBITDA rose 8% to $60.6 million, and Adjusted FFO per share climbed 15.8% to $0.22 as Comparable RevPAR grew 2% to $190.01 and Comparable Total RevPAR reached $298.95.
2. Guidance Raise and Share Repurchase
Following stronger-than-expected results, the company raised the midpoint of its 2026 guidance while maintaining a measured outlook given macro uncertainties. The board approved a new $300 million share repurchase program, and management repurchased 0.1 million shares at an average price of $9.38 per share for approximately $1.3 million post-quarter.
3. Portfolio Updates and Capital Recycling
DiamondRock executed a new franchise agreement for the Westin Boston Seaport District effective January 1, 2027, preserving the Westin flag beyond December 2026. Additionally, one hotel is under contract for sale with closing expected in Q2 2026, providing proceeds for redeployment into high-return assets.