DiamondRock Hospitality outperformed third-quarter expectations, driven by robust demand and improved pricing power across both transient and group segments. Total actual revenue reached $297.6 million, exceeding analyst estimates of $290.38 million. The company raised its full-year 2026 outlook following significant margin expansion and stronger-than-expected booking trends heading into the fourth quarter.
Key Highlights
- Comparable RevPAR increased 6.6% to $226.01, significantly exceeding the 3.5% growth anticipated by analysts.
- The company raised its full-year 2026 RevPAR growth guidance range to 4.75%–5.25%, up from the previous range of 2.5%–4.0%.
- Adjusted FFO per diluted share rose 10.3% year-over-year to $0.32, prompting a 22% increase in the quarterly common dividend to $0.11 per share.
- Comparable Hotel Adjusted EBITDA margins expanded by 166 basis points to 30.81% due to enhanced portfolio operating efficiencies.
- DiamondRock completed the $31 million acquisition of The Bellmoor Inn & Spa on October 1, 2026, at an attractive 8.6% capitalization rate.