DiamondRock (DRH) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Fri, February 27, 2026 astatine 9:40 AM CST 44 min read

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Friday, Feb. 27, 2026 astatine 9 a.m. ET

• President and main enforcement serviceman — Jeffrey John Donnelly

• Executive vice president, main fiscal officer, and treasurer — Briony R. Quinn

• Executive vice president and main operating serviceman — Justin L. Leonard

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We are pleased to study that we finished 2025 up of our astir caller guidance estimates. For the afloat twelvemonth 2025, we delivered firm adjusted EBITDA of $297,600,000 and adjusted FFO per stock of $1.08. Our escaped currency travel per share, defined arsenic adjusted FFO little CapEx, was $0.69, a 6% summation implicit 2024 and a 22% summation since 2023. Full-year comparable full RevPAR grew 1.2% and comparable edifice adjusted EBITDA grew 1.1%. Turning to the 4th quarter, firm adjusted EBITDA was $71,900,000 and adjusted FFO per stock was $0.27. Comparable RevPAR declined 30 ground points successful the quarter, somewhat exceeding our expectations.

The 4th fourth represented our astir hard examination of the year, with RevPAR maturation of 5.4% successful 2024. Against that backdrop and the interaction of the national authorities shutdown successful the quarter, we are surely pleased with the portfolio's performance. Occupancy declined 130 ground points year-over-year portion ADR accrued 1.6%. By segment, concern transient gross led the 4th with 2.5% maturation portion radical gross declined 1% and leisure transient gross declined 2.5%. We are peculiarly arrogant of the results achieved by our precocious renovated assets, including The Cliffs astatine L'Auberge, present afloat integrated into L’Auberge de Sedona, and the Kimpton Palomar Phoenix. In addition, our hotels successful Destin, the Greater San Francisco market, New York, and Denver delivered standout results.

Out-of-room walk proved much resilient than we anticipated. Total RevPAR accrued 0.6%, representing a 90 ground constituent outperformance comparative to RevPAR. This spot was concentrated successful our edifice portfolio, wherever out-of-room gross per occupied country accrued astir 7%, the strongest quarterly maturation of the year. Notably, out-of-room gross per occupied country astatine our resorts accelerated sequentially passim 2025, from 4% maturation successful the archetypal 4th to astir 7% maturation successful the 4th quarter. Food and beverage was a agleam spot again for the 3rd consecutive quarter. Food and beverage revenues accrued 1.4%, with banquets and catering up implicit 2% and outlets up 0.5%.

Food and beverage margins expanded by 120 ground points, aided by conscionable a 50 ground constituent summation successful labour costs. In applicable terms, nutrient and beverage profits accrued by implicit 5% connected conscionable 1.4% gross growth. Additional contributors to out-of-room gross maturation included spa, parking, and destination fees, each of which accrued successful the mid- to high-single digits, partially offset by somewhat little attrition and cancellation fees. Turning to portfolio segmentation, our municipality portfolio, which accounts for 62% of yearly EBITDA, delivered 0.3% RevPAR and full RevPAR maturation successful the 4th quarter. November was the softest period of the 4th erstwhile the interaction of the national authorities shutdown was astir pronounced.