DIAMONDROCK HOSPITALITY COMPANY REPORTS FIRST QUARTER 2025 RESULTS

Q1 Comparable RevPAR Increases 2.0% Declares Second Quarter 2025 Dividends , /PRNewswire/ -- DiamondRock Hospitality Company (the "Company") (NYSE: DRH), a lodging real estate investment trust that owns a portfolio of 36 premium hotels and resorts in the United States, today announced results of operations for the quarter ended March 31, 2025. Highlights Net Income: Net income attributable to common stockholders was $9.4 million, or $0.04 per diluted share, an increase of 59.3% compared to the first quarter of 2024. Comparable Revenues: $251.8 million, an increase of 0.5% compared to the first quarter of 2024. Comparable RevPAR: $186.20, an increase of 2.0% compared to the first quarter of 2024. Comparable Hotel Adjusted EBITDA: $61.3 million, an increase of 2.2% compared to the first quarter of 2024. Comparable Hotel Adjusted EBITDA Margin: 24.36%, an increase of 39 basis points compared to the first quarter of 2024. Adjusted EBITDA: $56.1 million, which is approximately flat to the first quarter of 2024. Adjusted FFO per Share: $0.19, an increase of 5.6% compared to the first quarter of 2024. Hotel Disposition: The Company completed the sale of the Westin Washington D.C. City Center for $92.0 million on February 19, 2025. Share Repurchases: The Company has repurchased 2.1 million shares of its common stock at a weighted average price of $7.66 per share for a total consideration of approximately $15.9 million through the date of this release. "First quarter operating results were in line with our expectations, with group revenues increasing over 10% and business transient revenues increasing over 9% to compared to last year. This strong revenue growth coupled with cost savings initiatives offset the softness at our Florida resorts in the first quarter resulting in comparable first quarter RevPAR growth of 2.0% and comparable Hotel Adjusted EBITDA growth of 2.2%. The rise in macroeconomic uncertainly has had only a mild effect on performance thus far. Encouragingly, near-term leisure booking pace remains in line with prior year trends, however group revenue pickup in the second half of 2025 has been tempered by an unsettled business environment. In light of this, we are lowering our top line outlook for 2025 by 200 basis points, but maintaining our previous outlook for Adjusted FFO per share. We remain optimistic DiamondRock can drive earnings growth through continued operating performance and deliberate action on accretive capital recycling. We have repurchased $15.9 million of common shares utilizing a portion the proceeds from the sale of the Westin Washington, D.C., which exemplifies our strategy to harvest capital from low free cash flow yield assets and redeploy proceeds into higher return opportunities." - Jeffrey J. Donnelly, Chief Executive Officer of DiamondRock Hospitality Company Operating Results Please see "Non-GAAP Financial Measures" attached to this press release for an explanation of the terms "EBITDAre," "Adjusted EBITDA," "Hotel Adjusted EBITDA," "Hotel Adjusted EBITDA Margin," "FFO" and "Adjusted FFO" and a reconciliation of these measures to net income. Comparable operating results include all hotels owned as of March 31, 2025 for all periods presented. See "Reconciliation of Comparable Operating Results" attached to this press release for a reconciliation to historical amounts. Three Months Ended March 31, 2025 2024 Change ($ amounts in millions, except hotel statistics and per share amounts) Comparable Operating Results(1) ADR $ 277.36 $ 269.95 2.7 % Occupancy 67.1 % 67.6 % (0.5) % RevPAR $ 186.20 $ 182.50 2.0 % Total RevPAR $ 291.56 $ 287.09 1.6 % Room Revenues $ 160.8 $ 159.2 1.0 % Total Revenues $ 251.8 $ 250.5 0.5 % Hotel Adjusted EBITDA $ 61.3 $ 60.0 2.2 % Hotel Adjusted EBITDA Margin 24.36 % 23.97 % 39 bps Available Rooms 863,550 872,508 (8,958) Actual Operating Results(2) Total Revenues $ 254.9 $ 256.4 (0.6) % Net income attributable to common stockholders $ 9.4 $ 5.9 59.3 % Earnings per diluted share $ 0.04 $ 0.03 33.3 % Adjusted EBITDA(3) $ 56.1 $ 56.2 (0.2) % Adjusted FFO(3) $ 39.5 $ 38.6 2.3 % Adjusted FFO per diluted share(3) $ 0.19 $ 0.18 5.6 % (1) Amounts include the pre-acquisition operating results for AC Hotel Minneapolis Downtown from January 1, 2024 to March 31, 2024 and exclude the operating results for Westin Washington D.C. City Center sold on February 19, 2025. The pre-acquisition operating results were obtained from the seller of the hotel during the acquisition due diligence process. We have made no adjustments to the amounts provided to us by the seller. The pre-acquisition operating results were not audited or reviewed by the Company's independent auditors. (2) Actual operating results include the operating results of all hotels for the Company's respective ownership periods. (3) Effective January 1, 2025, the Company excludes share-based compensation from its calculations of Adjusted EBITDA and Adjusted FFO. Amounts reported for 2024 have been adjusted to reflect the current year presentation. Hotel Disposition On February 19, 2025, the Company completed the sale of the 410-room Westin Washington D.C. City Center for a contract price of $92.0 million. The sale price represented an 11.2x multiple on 2024 Hotel EBITDA and a 7.5% capitalization rate on 2024 hotel net operating income, or a capitalization rate of 5.6% inclusive of the Company's projected capital expenditures. Excluding a one-time property tax credit and temporary discount on franchise fees the Hotel received in 2024, the sales price represented an 11.9x multiple on 2024 Hotel EBITDA and a 7.0% capitalization rate on 2024 Hotel net operating income, or a capitalization rate of 5.2% inclusive of the Company's projected capital expenditures. Capital Expenditures The Company invested approximately $25.6 million in capital improvements at its hotels during the three months ended March 31, 2025. The Company continues to expect to invest approximately $85 to $95 million in capital improvements at its hotels in 2025, however it is evaluating the timing and extent of certain projects that may be deferred or cancelled. Significant projects currently planned for 2025 include the following: Orchards Inn Sedona: The Company commenced the repositioning of Orchards Inn as the Cliffs at L'Auberge on November 1, 2024. The repositioning will integrate the hotel with the adjacent L'Auberge de Sedona and includes construction of a new pool connecting the two properties, renovation of the guestrooms and creation of a new arrival experience and new outdoor event space. The Company expects to complete the project in the third quarter of 2025. Hilton Garden Inn New York / Times Square Central: The Company completed a renovation of the hotel's guestrooms during the first quarter of 2025. Kimpton Hotel Palomar Phoenix: The Company expects to commence a renovation of the hotel's guestrooms during the second quarter of 2025. Courtyard New York Manhattan/Midtown East: The Company expects to commence a renovation of the hotel's guestrooms during the fourth quarter of 2025. Balance Sheet and Liquidity As of March 31, 2025, the Company had total debt outstanding of $1.1 billion, consisting of $800.0 million of unsecured term loans and three property-specific mortgage loans totaling $293.7 million, with a weighted average interest rate of 5.08%. The Company has three mortgage loans that mature in the next 12 months. The first mortgage loan maturity is on May 6, 2025, and the Company plans to repay that mortgage loan using cash on hand. The Company is actively pursuing a financing transaction, the proceeds of which will be used to repay the remaining mortgage loans that mature in 2025. In the event that the Company is unsuccessful in obtaining this new financing, it may use a combination of cash on hand and its senior unsecured revolving credit facility to address the remaining maturities. The Company ended the quarter with $624.6 million of liquidity, comprised of $100.6 million of unrestricted corporate cash, $124.0 million of unrestricted cash at its hotels and full availability of its revolving credit facility. Share Repurchase Program During the quarter ended March 31, 2025, the Company repurchased 1.4 million shares of its common stock at an average price of $7.85 per share for a total purchase price of $11.1 million. Subsequent to quarter end, the Company repurchased 0.7 million shares of its common stock at an average price of $7.26 for a total purchase price of $4.8 million. The Company currently has $158.1 million of remaining capacity under its $200.0 million share repurchase program. Dividends On April 29, 2025, the Company's Board of Directors declared a quarterly cash dividend of $0.08 per share on its common stock. The dividend will be paid on July 11, 2025 to shareholders of record as of June 30, 2025. The Company's Board of Directors also declared a quarterly dividend of $0.515625 per share on its 8.250% Series A Cumulative Redeemable Preferred Stock. The dividend is payable on June 30, 2025 to shareholders of record as of June 20, 2025. Guidance The Company is updating its annual guidance for 2025 in light of the current macroeconomic uncertainty. The outlook is based on current economic and operating trends, which include moderating group revenue pickup for the remainder of the year. Achievement of the anticipated results is subject to the risks disclosed in the Company's filings with the U.S. Securities and Exchange Commission, which may cause actual results to differ materially from the anticipated results expressed or implied below. The Company anticipates full year 2025 results to be in the following range: Current Guidance Previous Guidance Change at Midpoint Metric Low End High End Low End High End Comparable RevPAR Growth (1.0) % 1.0 % 1.0 % 3.0 % (2.0) % Adjusted EBITDA $270 million $295 million $275 million $300 million ($5.0) million Adjusted FFO $198 million $223 million $199 million $224 million ($1.0) million Adjusted FFO per share $0.94 per share $1.06 per share $0.94 per share $1.06 per share - Full year 2025 guidance is based in part on the following assumptions: Full year corporate expenses, excluding share-based compensation, of approximately $24 million to $25 million; Full year cash interest expense of approximately $60.5 million to $61.5 million; Fully diluted weighted average common shares and units of 210.3 million; and 3,502,175 full year available rooms. Earnings Call The Company will host a conference call to discuss its first quarter results on Friday, May 2, 2025, at 11:00 a.m. Eastern Time. The conference call will be accessible by telephone and through the internet. Interested individuals are requested to register for the call using this link to obtain dial-in and webcast details. Registration details are also available by visiting https://investor.drhc.com. A replay of the conference call webcast will be archived and available online. About the Company DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets. The Company currently owns 36 premium quality hotels with approximately 9,600 rooms. The Company has strategically positioned its portfolio to be operated both under leading global brand families as well as independent boutique hotels in the lifestyle segment. For further information on the Company and its portfolio, please visit DiamondRock Hospitality Company's website at www.drhc.com. This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as "believe," "expect," "intend," "project," "forecast," "plan" and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: the adverse impact of any future pandemic, epidemic or outbreak of any highly infectious disease on the U.S., regional and global economies, travel, the hospitality industry, and the financial condition and results of operations of the Company and its hotels; national and local economic and business conditions, including the potential for additional terrorist attacks, that will affect occupancy rates at the Company's hotels and the demand for hotel products and services; operating risks associated with the hotel business; relationships with property managers; the ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes in travel patterns, taxes and government regulations which influence or determine wages, prices, construction procedures and costs; and other risk factors contained in the Company's filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of the date of this release, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations. DIAMONDROCK HOSPITALITY COMPANY CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) March 31, 2025 December 31, 2024 ASSETS (unaudited) Property and equipment, net $ 2,625,136 $ 2,631,221 Assets held for sale — 93,400 Right-of-use assets 89,707 89,931 Restricted cash 49,638 47,408 Due from hotel managers 160,991 145,947 Prepaid and other assets 75,504 82,963 Cash and cash equivalents 100,621 81,381 Total assets $ 3,101,597 $ 3,172,251 LIABILITIES AND EQUITY Liabilities: Debt, net of unamortized debt issuance costs 1,092,941 1,095,294 Lease liabilities 85,674 85,235 Due to hotel managers 123,724 121,734 Liabilities of assets held for sale — 3,352 Deferred rent 74,584 73,535 Unfavorable contract liabilities, net 57,793 58,208 Accounts payable and accrued expenses 68,250 79,201 Distributions declared and unpaid 17,334 49,034 Deferred income related to key money, net 7,645 7,726 Total liabilities 1,527,945 1,573,319 Equity: Preferred stock, $0.01 par value; 10,000,000 shares authorized; 8.250% Series A Cumulative Redeemable Preferred Stock (liquidation preference $25.00 per share), 4,760,000 shares issued and outstanding at March 31, 2025 and December 31, 2024 48 48 Common stock, $0.01 par value; 400,000,000 shares authorized; 206,972,935 and 207,592,210 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively 2,069 2,076 Additional paid-in capital 2,253,718 2,268,521 Accumulated other comprehensive loss (4,511) (1,360) Distributions in excess of earnings (686,428) (679,050) Total stockholders' equity 1,564,896 1,590,235 Noncontrolling interests 8,756 8,697 Total equity 1,573,652 1,598,932 Total liabilities and equity $ 3,101,597 $ 3,172,251 DIAMONDROCK HOSPITALITY COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (unaudited) Three Months Ended March 31, 2025 2024 Revenues: Rooms $ 163,118 $ 163,507 Food and beverage 66,841 68,381 Other 24,894 24,535 Total revenues 254,853 256,423 Operating Expenses: Rooms 43,843 43,968 Food and beverage 46,417 47,239 Other departmental and support expenses 65,286 64,600 Management fees 5,018 5,310 Franchise fees 9,048 9,026 Other property-level expenses 24,899 26,618 Depreciation and amortization 27,892 28,313 Corporate expenses 7,683 8,904 Total operating expenses 230,086 233,978 Interest expense 15,158 16,246 Interest (income) and other (income) expense, net (1,464) (1,069) Total other expenses, net 13,694 15,177 Income before income taxes 11,073 7,268 Income tax benefit 842 1,090 Net income 11,915 8,358 Less: Net income attributable to noncontrolling interests (58) (30) Net income attributable to the Company 11,857 8,328 Distributions to preferred stockholders (2,454) (2,454) Net income attributable to common stockholders $ 9,403 $ 5,874 Earnings per share: Earnings per share available to common stockholders - basic $ 0.05 $ 0.03 Earnings per share available to common stockholders - diluted $ 0.04 $ 0.03 Weighted-average number of common shares outstanding: Basic 208,509,552 211,669,343 Diluted 210,346,070 212,342,467 Non-GAAP Financial Measures We use the following non-GAAP financial measures that we believe are useful to investors as key measures of our operating performance: EBITDA, EBITDAre, Adjusted EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted FFO. These measures should not be considered in isolation or as a substitute for measures of performance in accordance with U.S. GAAP. EBITDA, EBITDAre, Adjusted EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted FFO, as calculated by us, may not be comparable to other companies that do not define such terms exactly as the Company. Use and Limitations of Non-GAAP Financial Measures Our management and Board of Directors use EBITDA, EBITDAre, Adjusted EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted FFO to evaluate the performance of our hotels and to facilitate comparisons between us and other lodging REITs, hotel owners who are not REITs and other capital intensive companies. The use of these non-GAAP financial measures has certain limitations. These non-GAAP financial measures as presented by us, may not be comparable to non-GAAP financial measures as calculated by other real estate companies. These measures do not reflect certain expenses or expenditures that we incurred and will incur, such as depreciation, interest and capital expenditures. We compensate for these limitations by separately considering the impact of these excluded items to the extent they are material to operating decisions or assessments of our operating performance. Our reconciliations to the most comparable U.S. GAAP financial measures, and our consolidated statements of operations and comprehensive income and consolidated statements of cash flows, include interest expense, capital expenditures, and other excluded items, all of which should be considered when evaluating our performance, as well as the usefulness of our non-GAAP financial measures. These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with U.S. GAAP. They should not be considered as alternatives to operating profit, cash flow from operations, or any other operating performance measure prescribed by U.S. GAAP. These non-GAAP financial measures reflect additional ways of viewing our operations that we believe, when viewed with our U.S. GAAP results and the reconciliations to the corresponding U.S. GAAP financial measures, provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. We strongly encourage investors to review our financial information in its entirety and not to rely on a single financial measure. EBITDA and EBITDAre EBITDA represents net income (calculated in accordance with U.S. GAAP) excluding: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sale of assets; and (3) depreciation and amortization. The Company computes EBITDAre in accordance with the National Association of Real Estate Investment Trusts ("Nareit") guidelines, as defined in its September 2017 white paper "Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate." EBITDAre represents net income (calculated in accordance with U.S. GAAP) adjusted for: (1) interest expense; (2) provision for income taxes, including income taxes applicable to sale of assets; (3) depreciation and amortization; (4) gains or losses on the disposition of depreciated property including gains or losses on change of control; (5) impairment write-downs of depreciated property and of investments in unconsolidated affiliates caused by a decrease in value of depreciated property in the affiliate; and (6) adjustments to reflect the entity's share of EBITDAre of unconsolidated affiliates. We believe EBITDA and EBITDAre are useful to an investor in evaluating our operating performance because they help investors evaluate and compare the results of our operations from period to period by removing the impact of our capital structure (primarily interest expense) and our asset base (primarily depreciation and amortization, and in the case of EBITDAre, impairment and gains or losses on dispositions of depreciated property) from our operating results. In addition, covenants included in our debt agreements use EBITDA as a measure of financial compliance. We also use EBITDA and EBITDAre as measures in determining the value of hotel acquisitions and dispositions. FFO The Company computes FFO in accordance with standards established by Nareit, which defines FFO as net income (calculated in accordance with U.S. GAAP) excluding gains or losses from sales of properties and impairment losses, plus real estate related depreciation and amortization. The Company believes that the presentation of FFO provides useful information to investors regarding its operating performance because it is a measure of the Company's operations without regard to specified non-cash items, such as real estate related depreciation and amortization and gains or losses on the sale of assets. The Company also uses FFO as one measure in assessing its operating results. Adjustments to EBITDAre and FFO We adjust EBITDAre and FFO when evaluating our performance because we believe that the exclusion of certain additional items described below provides useful supplemental information to investors regarding our ongoing operating performance and that the presentation of Adjusted EBITDA and Adjusted FFO when combined with U.S. GAAP net income, EBITDAre and FFO, is beneficial to an investor's complete understanding of our consolidated and property-level operating performance. We adjust EBITDAre and FFO for the following items: Non-Cash Lease Expense and Other Amortization: We exclude the non-cash expense incurred from the straight line recognition of expense from our ground leases and other contractual obligations and the non-cash amortization of our favorable and unfavorable contracts, originally recorded in conjunction with certain hotel acquisitions. We exclude these non-cash items because they do not reflect the actual cash amounts due to the respective lessors in the current period and they are of lesser significance in evaluating our actual performance for that period. Cumulative Effect of a Change in Accounting Principle: The Financial Accounting Standards Board promulgates new accounting standards that require or permit the consolidated statement of operations and comprehensive income to reflect the cumulative effect of a change in accounting principle. We exclude the effect of these adjustments, which include the accounting impact from prior periods, because they do not reflect the Company's actual underlying performance for the current period. Gains or Losses from Early Extinguishment of Debt: We exclude the effect of gains or losses recorded on the early extinguishment of debt because these gains or losses result from transaction activity related to the Company's capital structure that we believe are not indicative of the ongoing operating performance of the Company or our hotels. Hotel Acquisition Costs: We exclude hotel acquisition costs expensed during the period because we believe these transaction costs are not reflective of the ongoing performance of the Company or our hotels. Severance Costs: We exclude corporate severance costs, or reversals thereof, incurred with the termination of corporate-level employees and severance costs incurred at our hotels related to lease terminations or structured severance programs because we believe these costs do not reflect the ongoing performance of the Company or our hotels. Hotel Manager Transition and Hotel Pre-Opening Costs: We exclude the transition costs associated with a change in hotel manager and the pre-opening costs associated with the redevelopment or rebranding of a hotel because we believe these items do not reflect the ongoing performance of the Company or our hotels. Share-Based Compensation Expense: We exclude share-based compensation expense as it is a non-cash item. This adjustment aligns with the calculation of Adjusted EBITDA for our financial covenant ratios under our credit facility, supporting consistency in our financial reporting and covenant compliance, as well as comparability with our peers. Other Items: From time to time we incur costs or realize gains that we consider outside the ordinary course of business and that we do not believe reflect the ongoing performance of the Company or our hotels. Such items may include, but are not limited to, the following: non-cash realized gains or losses on our deferred compensation plan assets; management or franchise contract termination fees; gains or losses from legal settlements; costs incurred related to natural disasters; and gains on property insurance claim settlements, other than income related to business interruption insurance. In addition, to derive Adjusted FFO, we exclude any unrealized fair value adjustments to interest rate swaps and the portion of our non-cash ground lease expense recognized as interest expense. We exclude these non-cash amounts because they do not reflect the underlying performance of the Company. Hotel Adjusted EBITDA We believe that Hotel Adjusted EBITDA provides our investors a useful financial measure to evaluate our hotel operating performance, excluding the impact of our capital structure (primarily interest), our asset base (primarily depreciation and amortization), and our corporate-level expenses. With respect to Hotel Adjusted EBITDA, we believe that excluding the effect of corporate-level expenses provides a more complete understanding of the operating results over which individual hotels and third-party management companies have direct control. We believe property-level results provide investors with supplemental information on the ongoing operational performance of our hotels and effectiveness of the third-party management companies operating our business on a property-level basis. Hotel Adjusted EBITDA margins are calculated as Hotel Adjusted EBITDA divided by total hotel revenues. Reconciliations of Non-GAAP Measures EBITDA, EBITDAre, Adjusted EBITDA and Hotel Adjusted EBITDA The following tables are reconciliations of our GAAP net income to EBITDA, EBITDAre and Adjusted EBITDA and Hotel Adjusted EBITDA (in thousands): Three Months Ended March 31, 2025 2024(As Adjusted)(1) Net income $ 11,915 $ 8,358 Interest expense 15,158 16,246 Income tax benefit (842) (1,090) Real estate related depreciation and amortization 27,892 28,313 EBITDA/EBITDAre 54,123 51,827 Non-cash lease expense and other amortization 1,299 1,518 Share-based compensation expense (2) 665 2,635 Hotel pre-opening costs 23 234 Adjusted EBITDA 56,110 56,214 Corporate expenses 6,348 6,248 Interest (income) and other (income) expense, net (794) (1,048) Hotel Adjusted EBITDA $ 61,664 $ 61,414 (1) Effective January 1, 2025, the Company excludes share-based compensation expense from its calculation of Adjusted EBITDA. Amounts reported for 2024 have been adjusted to reflect the current year presentation. (2) Amount includes $0.7 million of non-cash realized gains related to the Company's deferred compensation plan for the three months ended March 31, 2025. Full Year 2025 Guidance Low End High End Net income $ 78,117 $ 104,117 Interest expense 61,500 60,500 Income tax expense 683 1,683 Real estate related depreciation and amortization 116,000 115,000 EBITDAre 256,300 281,300 Non-cash lease expense and other amortization 6,200 6,200 Share-based compensation expense 7,000 7,000 Hotel pre-opening costs 500 500 Adjusted EBITDA $ 270,000 $ 295,000 FFO and Adjusted FFO The following tables are reconciliations of our GAAP net income to FFO and Adjusted FFO (in thousands): Three Months Ended March 31, 2025 2024(As Adjusted)(1) Net income $ 11,915 $ 8,358 Real estate related depreciation and amortization 27,892 28,313 FFO 39,807 36,671 Distribution to preferred stockholders (2,454) (2,454) FFO available to common stock and unit holders 37,353 34,217 Non-cash lease expense and other amortization 1,475 1,518 Share-based compensation expense (2) 665 2,635 Hotel pre-opening costs 23 234 Adjusted FFO available to common stock and unit holders $ 39,516 $ 38,604 Adjusted FFO available to common stock and unit holders, per diluted share $ 0.19 $ 0.18 Diluted weighted average shares and units 211,353 213,098 (1) Effective January 1, 2025, the Company excludes share-based compensation from its calculation of Adjusted FFO. Amounts reported for 2024 have been adjusted to reflect the current year presentation. (2) Amount includes $0.7 million of non-cash realized gains related to the Company's deferred compensation plan for the three months ended March 31, 2025. Full Year 2025 Guidance Low End High End Net income $ 78,117 $ 104,117 Real estate related depreciation and amortization 116,000 115,000 FFO 194,117 219,117 Distribution to preferred stockholders (9,817) (9,817) FFO available to common stock and unit holders 184,300 209,300 Non-cash lease expense and other amortization 6,200 6,200 Share-based compensation expense 7,000 7,000 Hotel pre-opening costs 500 500 Adjusted FFO available to common stock and unit holders $ 198,000 $ 223,000 Adjusted FFO available to common stock and unit holders, per diluted share $ 0.94 $ 1.06 Diluted weighted average shares and units 210,300 210,300 Reconciliation of Comparable Operating Results The following presents the revenues, Hotel Adjusted EBITDA and Hotel Adjusted EBITDA Margin together with comparable prior year results (in thousands): Three Months Ended March 31, 2025 2024 Revenues $ 254,853 $ 256,423 Hotel revenues from prior ownership (1) — 1,534 Hotel revenues from sold hotel (2) (3,077) (7,466) Comparable Revenues $ 251,776 $ 250,491 Hotel Adjusted EBITDA $ 61,664 $ 61,414 Hotel Adjusted EBITDA from prior ownership (1) — 34 Hotel Adjusted EBITDA from sold hotel (2) (331) (1,401) Comparable Hotel Adjusted EBITDA $ 61,333 $ 60,047 Hotel Adjusted EBITDA Margin 24.20 % 23.95 % Comparable Hotel Adjusted EBITDA Margin 24.36 % 23.97 % (1) Amounts represent the pre-acquisition operating results for AC Hotel Minneapolis Downtown from January 1, 2024 to March 31, 2024. The pre-acquisition operating results were obtained from the seller of the hotel during the acquisition due diligence process. We have made no adjustments to the amounts provided to us by the seller. The pre-acquisition operating results were not audited or reviewed by the Company's independent auditors. (2) Amounts represent the operating results for Westin Washington D.C. City Center sold on February 19, 2025. Selected Quarterly Comparable Operating Information The following table is presented to provide investors with selected quarterly comparable operating information for the Company's current portfolio of 36 hotels. Quarter 1, 2024 Quarter 2, 2024 Quarter 3, 2024 Quarter 4, 2024 Full Year 2024 ADR $ 269.95 $ 292.59 $ 282.05 $ 291.24 $ 284.26 Occupancy 67.6 % 77.5 % 76.2 % 69.5 % 72.7 % RevPAR $ 182.50 $ 226.83 $ 214.79 $ 202.40 $ 206.64 Total RevPAR $ 287.09 $ 346.27 $ 318.60 $ 309.18 $ 315.28 Revenues (in thousands) $ 250,491 $ 302,217 $ 281,127 $ 272,783 $ 1,106,618 Hotel Adjusted EBITDA (in thousands) $ 60,047 $ 97,206 $ 82,003 $ 73,899 $ 313,155 Hotel Adjusted EBITDA Margin 23.97 % 32.16 % 29.17 % 27.09 % 28.30 % Available Rooms 872,508 872,781 882,372 882,280 3,509,941 Market Capitalization as of March 31, 2025 (in thousands) Enterprise Value Common equity capitalization (at March 31, 2025 closing price of $7.72/share) $ 1,616,966 Preferred equity capitalization (at liquidation value of $25.00/share) 119,000 Consolidated debt (face amount) 1,093,694 Cash and cash equivalents (100,621) Total enterprise value $ 2,729,039 Share Reconciliation Common shares outstanding 206,973 Operating partnership units 1,135 Unvested restricted stock held by management and employees 836 Share grants under deferred compensation plan 508 Combined shares and units 209,452 Debt Summary as of March 31, 2025 (dollars in thousands) Loan Interest Rate Term Outstanding Principal Maturity Worthington Renaissance Fort Worth Hotel 3.66 % Fixed 71,254 May 2025 Hotel Clio 4.33 % Fixed 54,279 July 2025 Westin Boston Seaport District 4.36 % Fixed 168,161 November 2025 Unsecured term loan SOFR + 1.35% (1) Variable 500,000 January 2028 Unsecured term loan SOFR + 1.35% (2) Variable 300,000 January 2026 Senior unsecured credit facility SOFR + 1.40% Variable — September 2026 (3) Total debt 1,093,694 Unamortized debt issuance costs (4) (753) Debt, net of unamortized debt issuance costs $ 1,092,941 Total weighted-average interest rate (5) 5.08 % (1) Interest rate as of March 31, 2025 was 5.12%, which includes the effect of interest rate swaps. (2) Interest rate as of March 31, 2025 was 5.76%. (3) Maturity date may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions. (4) Excludes debt issuance costs related to our senior unsecured credit facility, which are included within Prepaid and Other Assets on the accompanying consolidated balance sheet. (5) Weighted-average interest rate includes the effect of interest rate swaps. Operating Statistics – First Quarter Number of Rooms ADR Occupancy RevPAR 1Q 2025 1Q 2024 B/(W) 2024 1Q 2025 1Q 2024 B/(W) 2024 1Q 2025 1Q 2024 B/(W) 2024 AC Hotel Minneapolis Downtown (1) 245 $ 128.32 $ 146.67 (12.5) % 41.1 % 40.5 % 0.6 % $ 52.76 $ 59.41 (11.2) % Atlanta Marriott Alpharetta 318 $ 171.86 $ 165.66 3.7 % 64.9 % 59.1 % 5.8 % $ 111.57 $ 97.96 13.9 % Bourbon Orleans Hotel 220 $ 302.03 $ 261.57 15.5 % 68.6 % 76.6 % (8.0) % $ 207.24 $ 200.49 3.4 % Cavallo Point, The Lodge at the Golden Gate 142 $ 539.57 $ 550.92 (2.1) % 51.5 % 51.0 % 0.5 % $ 277.80 $ 281.13 (1.2) % Chicago Marriott Downtown Magnificent Mile 1,200 $ 199.47 $ 173.13 15.2 % 42.9 % 46.3 % (3.4) % $ 85.67 $ 80.22 6.8 % Chico Hot Springs Resort & Day Spa 117 $ 205.92 $ 180.03 14.4 % 59.9 % 71.7 % (11.8) % $ 123.36 $ 129.16 (4.5) % Courtyard Denver Downtown 177 $ 165.03 $ 156.97 5.1 % 70.9 % 67.8 % 3.1 % $ 117.08 $ 106.42 10.0 % Courtyard New York Manhattan/Fifth Avenue 189 $ 224.94 $ 208.12 8.1 % 93.9 % 89.0 % 4.9 % $ 211.19 $ 185.26 14.0 % Courtyard New York Manhattan/Midtown East 321 $ 250.75 $ 248.51 0.9 % 87.6 % 91.1 % (3.5) % $ 219.67 $ 226.49 (3.0) % Embassy Suites by Hilton Bethesda 272 $ 161.98 $ 158.71 2.1 % 55.5 % 58.9 % (3.4) % $ 89.95 $ 93.52 (3.8) % Havana Cabana Key West 106 $ 338.18 $ 407.80 (17.1) % 92.9 % 85.6 % 7.3 % $ 314.11 $ 349.24 (10.1) % Henderson Beach Resort 270 $ 286.91 $ 324.06 (11.5) % 40.5 % 40.5 % — % $ 116.32 $ 131.20 (11.3) % Henderson Park Inn 37 $ 422.11 $ 410.42 2.8 % 51.9 % 57.2 % (5.3) % $ 219.17 $ 234.65 (6.6) % Hilton Garden Inn New York/Times Square Central 282 $ 200.21 $ 181.91 10.1 % 68.2 % 89.7 % (21.5) % $ 136.49 $ 163.18 (16.4) % Hotel Champlain Burlington 258 $ 142.41 $ 147.57 (3.5) % 57.5 % 56.2 % 1.3 % $ 81.82 $ 82.96 (1.4) % Hotel Clio 199 $ 282.38 $ 266.77 5.9 % 70.0 % 65.2 % 4.8 % $ 197.67 $ 173.98 13.6 % Hotel Emblem San Francisco 96 $ 252.59 $ 254.29 (0.7) % 56.0 % 58.8 % (2.8) % $ 141.44 $ 149.50 (5.4) % Kimpton Hotel Palomar Phoenix 242 $ 286.75 $ 274.39 4.5 % 76.8 % 81.9 % (5.1) % $ 220.31 $ 224.84 (2.0) % Kimpton Shorebreak Fort Lauderdale Beach Resort 96 $ 272.11 $ 259.42 4.9 % 86.5 % 89.1 % (2.6) % $ 235.30 $ 231.18 1.8 % Kimpton Shorebreak Huntington Beach Resort 157 $ 288.04 $ 286.87 0.4 % 73.6 % 78.5 % (4.9) % $ 211.92 $ 225.25 (5.9) % L'Auberge de Sedona 88 $ 788.96 $ 860.57 (8.3) % 73.2 % 65.0 % 8.2 % $ 577.28 $ 559.03 3.3 % Lake Austin Spa Resort 40 $ 1,014.82 $ 1,000.12 1.5 % 50.9 % 57.6 % (6.7) % $ 516.15 $ 576.17 (10.4) % Margaritaville Beach House Key West 186 $ 480.85 $ 512.43 (6.2) % 91.0 % 91.8 % (0.8) % $ 437.79 $ 470.35 (6.9) % Orchards Inn Sedona 70 $ (14.44) $ 296.11 (104.9) % — % 57.2 % (57.2) % $ — $ 169.25 (100.0) % Salt Lake City Marriott Downtown at City Creek 510 $ 204.34 $ 198.29 3.1 % 69.3 % 65.7 % 3.6 % $ 141.58 $ 130.36 8.6 % The Dagny Boston 403 $ 200.37 $ 194.24 3.2 % 77.9 % 76.8 % 1.1 % $ 156.16 $ 149.23 4.6 % The Gwen 311 $ 223.52 $ 213.40 4.7 % 67.0 % 65.9 % 1.1 % $ 149.75 $ 140.71 6.4 % The Hythe Vail 344 $ 678.66 $ 629.06 7.9 % 75.8 % 76.4 % (0.6) % $ 514.47 $ 480.78 7.0 % The Landing Lake Tahoe Resort & Spa 82 $ 324.87 $ 332.66 (2.3) % 47.7 % 46.7 % 1.0 % $ 155.00 $ 155.36 (0.2) % The Lindy Renaissance Charleston Hotel 167 $ 331.14 $ 319.79 3.5 % 85.5 % 86.6 % (1.1) % $ 283.02 $ 276.82 2.2 % The Lodge at Sonoma Resort 182 $ 335.90 $ 311.09 8.0 % 60.8 % 45.4 % 15.4 % $ 204.16 $ 141.10 44.7 % Tranquility Bay Beachfront Resort 103 $ 734.06 $ 809.20 (9.3) % 78.9 % 75.5 % 3.4 % $ 579.02 $ 610.81 (5.2) % Westin Boston Waterfront 793 $ 235.21 $ 219.87 7.0 % 76.3 % 78.0 % (1.7) % $ 179.45 $ 171.40 4.7 % Westin Fort Lauderdale Beach Resort 432 $ 330.69 $ 330.31 0.1 % 84.5 % 87.6 % (3.1) % $ 279.44 $ 289.51 (3.5) % Westin San Diego Bayview 436 $ 223.85 $ 218.22 2.6 % 76.5 % 61.3 % 15.2 % $ 171.14 $ 133.84 27.9 % Westin Washington D.C. City Center 410 $ 254.66 $ 188.29 35.2 % 45.4 % 60.7 % (15.3) % $ 115.57 $ 114.25 1.2 % Worthington Renaissance Fort Worth Hotel 504 $ 212.06 $ 209.20 1.4 % 74.7 % 69.9 % 4.8 % $ 158.44 $ 146.33 8.3 % Comparable Total (2) 9,595 $ 277.36 $ 269.95 2.7 % 67.1 % 67.6 % (0.5) % $ 186.20 $ 182.50 2.0 % (1) Hotel was acquired on November 12, 2024. Amounts reflect the pre-acquisition operating results of the period from January 1, 2024 to March 31, 2024. (2) Amounts include the pre-acquisition operating results of the AC Minneapolis Downtown acquired in 2024 and exclude the Westin Washington D.C. City Center which was sold in 2025. Hotel Adjusted EBITDA Reconciliation - First Quarter 2025 Net Income / (Loss) Plus: Plus: Plus: Equals: Hotel Adjusted EBITDA Total Revenues Depreciation Interest Expense Adjustments (1) AC Hotel Minneapolis Downtown $ 1,406 $ (363) $ 297 $ — $ — $ (66) Atlanta Marriott Alpharetta $ 4,788 $ 1,606 $ 363 $ — $ — $ 1,969 Bourbon Orleans Hotel $ 5,192 $ 1,369 $ 1,057 $ — $ 3 $ 2,429 Cavallo Point, The Lodge at the Golden Gate $ 9,685 $ (270) $ 1,459 $ — $ 94 $ 1,283 Chicago Marriott Downtown Magnificent Mile $ 17,116 $ (3,018) $ 3,110 $ 6 $ (397) $ (299) Chico Hot Springs Resort & Day Spa $ 3,300 $ (236) $ 430 $ — $ — $ 194 Courtyard Denver Downtown $ 2,141 $ 131 $ 383 $ — $ — $ 514 Courtyard New York Manhattan/Fifth Avenue $ 3,683 $ (641) $ 342 $ 283 $ 196 $ 180 Courtyard New York Manhattan/Midtown East $ 6,641 $ 283 $ 530 $ — $ — $ 813 Embassy Suites by Hilton Bethesda $ 2,584 $ (1,970) $ 547 $ — $ 1,450 $ 27 Havana Cabana Key West $ 4,001 $ 1,364 $ 314 $ — $ — $ 1,678 Henderson Beach Resort $ 6,591 $ (934) $ 1,110 $ — $ — $ 176 Henderson Park Inn $ 1,263 $ (33) $ 279 $ — $ — $ 246 Hilton Garden Inn New York/Times Square Central $ 4,060 $ (1,086) $ 658 $ — $ — $ (428) Hotel Champlain Burlington $ 2,954 $ (1,220) $ 781 $ — $ — $ (439) Hotel Clio $ 5,992 $ (704) $ 855 $ 599 $ 5 $ 755 Hotel Emblem San Francisco $ 1,514 $ (56) $ 293 $ — $ — $ 237 Kimpton Hotel Palomar Phoenix $ 7,412 $ 1,956 $ 508 $ — $ 193 $ 2,657 Kimpton Shorebreak Fort Lauderdale Beach Resort $ 3,646 $ 696 $ 369 $ — $ — $ 1,065 Kimpton Shorebreak Huntington Beach Resort $ 4,749 $ 833 $ 341 $ — $ — $ 1,174 L'Auberge de Sedona $ 7,655 $ 1,930 $ 411 $ — $ — $ 2,341 Lake Austin Spa Resort $ 4,465 $ 280 $ 717 $ — $ — $ 997 Margaritaville Beach House Key West $ 9,491 $ 3,952 $ 760 $ — $ — $ 4,712 Orchards Inn Sedona $ 775 $ (458) $ 96 $ — $ 42 $ (320) Salt Lake City Marriott Downtown at City Creek $ 9,054 $ 2,575 $ 1,047 $ — $ 11 $ 3,633 The Dagny Boston $ 6,678 $ (985) $ 1,560 $ — $ — $ 575 The Gwen $ 6,113 $ (1,626) $ 754 $ — $ — $ (872) The Hythe Vail $ 22,195 $ 10,600 $ 1,161 $ — $ — $ 11,761 The Landing Lake Tahoe Resort & Spa $ 2,161 $ (113) $ 318 $ — $ — $ 205 The Lindy Renaissance Charleston Hotel $ 5,371 $ 1,924 $ 364 $ — $ — $ 2,288 The Lodge at Sonoma Resort $ 5,867 $ 436 $ 492 $ — $ — $ 928 Tranquility Bay Beachfront Resort $ 6,761 $ 1,934 $ 467 $ — $ — $ 2,401 Westin Boston Seaport District $ 21,095 $ (1,168) $ 2,295 $ 1,881 $ (122) $ 2,886 Westin Fort Lauderdale Beach Resort $ 22,234 $ 7,329 $ 1,114 $ — $ — $ 8,443 Westin San Diego Bayview $ 9,842 $ 1,618 $ 1,349 $ — $ — $ 2,967 Westin Washington D.C. City Center $ 3,077 $ 331 $ — $ — $ — $ 331 Worthington Renaissance Fort Worth Hotel $ 13,301 $ 2,604 $ 961 $ 677 $ — $ 4,242 Total $ 254,853 $ 28,870 $ 27,892 $ 3,446 $ 1,475 $ 61,664 Less: Sold Hotel (2) $ (3,077) $ (331) $ — $ — $ — $ (331) Comparable Total $ 251,776 $ 28,539 $ 27,892 $ 3,446 $ 1,475 $ 61,333 (1) Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization of intangible assets and liabilities. (2) Represents the operating results of the Westin Washington D.C. City Center sold in 2025. Hotel Adjusted EBITDA Reconciliation - First Quarter 2024 Net Income / (Loss) Plus: Plus: Plus: Equals: Hotel Total Revenues Depreciation Interest Expense Adjustments (1) Adjusted EBITDA Atlanta Marriott Alpharetta $ 4,186 $ 1,090 $ 375 $ — $ — $ 1,465 Bourbon Orleans Hotel $ 4,991 $ 1,314 $ 874 $ — $ (29) $ 2,159 Cavallo Point, The Lodge at the Golden Gate $ 9,847 $ (66) $ 1,461 $ — $ 94 $ 1,489 Chicago Marriott Downtown Magnificent Mile $ 19,287 $ (1,577) $ 3,415 $ 6 $ (397) $ 1,447 Chico Hot Springs Resort & Day Spa $ 3,329 $ (256) $ 387 $ — $ 2 $ 133 Courtyard Denver Downtown $ 1,986 $ 168 $ 381 $ — $ — $ 549 Courtyard New York Manhattan/Fifth Avenue $ 3,301 $ (941) $ 359 $ — $ 253 $ (329) Courtyard New York Manhattan/Midtown East $ 6,928 $ (569) $ 526 $ 875 $ — $ 832 Embassy Suites by Hilton Bethesda $ 2,640 $ (2,035) $ 575 $ — $ 1,462 $ 2 Havana Cabana Key West $ 4,135 $ 1,464 $ 298 $ — $ — $ 1,762 Henderson Beach Resort $ 6,719 $ (957) $ 1,062 $ — $ — $ 105 Henderson Park Inn $ 1,278 $ (117) $ 274 $ — $ — $ 157 Hilton Garden Inn New York/Times Square Central $ 4,946 $ (536) $ 650 $ — $ — $ 114 Hotel Champlain Burlington $ 2,676 $ (810) $ 574 $ — $ — $ (236) Hotel Clio $ 5,429 $ (1,034) $ 845 $ 621 $ 5 $ 437 Hotel Emblem San Francisco $ 1,627 $ (36) $ 302 $ — $ — $ 266 Kimpton Hotel Palomar Phoenix $ 7,730 $ 2,247 $ 501 $ — $ 197 $ 2,945 Kimpton Shorebreak Fort Lauderdale Beach Resort $ 3,298 $ 486 $ 357 $ — $ — $ 843 Kimpton Shorebreak Huntington Beach Resort $ 5,006 $ 981 $ 380 $ — $ — $ 1,361 L'Auberge de Sedona $ 7,339 $ 1,627 $ 386 $ — $ — $ 2,013 Lake Austin Spa Resort $ 4,837 $ 312 $ 681 $ — $ — $ 993 Margaritaville Beach House Key West $ 10,107 $ 4,200 $ 766 $ — $ — $ 4,966 Orchards Inn Sedona $ 2,032 $ 415 $ 88 $ — $ 42 $ 545 Salt Lake City Marriott Downtown at City Creek $ 8,402 $ 2,156 $ 918 $ — $ 11 $ 3,085 The Dagny Boston $ 6,425 $ (1,116) $ 1,530 $ — $ — $ 414 The Gwen $ 5,473 $ (1,865) $ 949 $ — $ — $ (916) The Hythe Vail $ 20,496 $ 9,508 $ 1,181 $ — $ — $ 10,689 The Landing Lake Tahoe Resort & Spa $ 2,159 $ (114) $ 219 $ — $ — $ 105 The Lindy Renaissance Charleston Hotel $ 5,275 $ 1,700 $ 394 $ — $ — $ 2,094 The Lodge at Sonoma Resort $ 4,538 $ (639) $ 618 $ — $ — $ (21) Tranquility Bay Beachfront Resort $ 7,158 $ 1,937 $ 453 $ — $ — $ 2,390 Westin Boston Seaport District $ 21,101 $ (1,199) $ 2,484 $ 1,953 $ (122) $ 3,116 Westin Fort Lauderdale Beach Resort $ 24,022 $ 8,261 $ 1,083 $ — $ — $ 9,344 Westin San Diego Bayview $ 7,677 $ 802 $ 1,068 $ — $ — $ 1,870 Westin Washington D.C. City Center $ 7,466 $ 353 $ 1,048 $ — $ — $ 1,401 Worthington Renaissance Fort Worth Hotel $ 12,577 $ 2,174 $ 851 $ 702 $ — $ 3,727 Total $ 256,423 $ 27,328 $ 28,313 $ 4,157 $ 1,518 $ 61,414 Add: Prior Ownership Results (2) $ 1,534 $ (290) $ 324 $ — $ — $ 34 Less: Sold Hotel (3) $ (7,466) $ (353) $ (1,048) $ — $ — $ (1,401) Comparable Total $ 250,491 $ 26,685 $ 27,589 $ 4,157 $ 1,518 $ 60,047 (1) Includes non-cash expenses incurred by the hotels due to the straight lining of the rent from ground lease obligations and the non-cash amortization of intangible assets and liabilities. (2) Represents the pre-acquisition operating results of the AC Minneapolis Downtown acquired in 2024. (3) Represents the operating results of the Westin Washington D.C. City Center sold in 2025. SOURCE DiamondRock Hospitality Company WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

DIAMONDROCK HOSPITALITY COMPANY REPORTS FIRST QUARTER 2025 RESULTS

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