DiamondRock’s third-quarter results were positive, but the +0.8% share move was roughly flat. RevPAR and earnings grew, while management also noted higher-than-expected expenses and gave only a partial view of its increased 2026 guidance in the available transcript.
- Comparable RevPAR rose 6.6% and total RevPAR 6.5%; occupancy increased 200 basis points and rate improved 3.8%.
- Hotel adjusted EBITDA grew 12.5%, with 166 basis points of margin expansion. Adjusted FFO per share was $0.32, up more than 10% year over year.
- Transient revenue increased 8.3%, while group revenue rose 1%; group room nights declined modestly, offset by a 2.8% rate increase.
- Resort RevPAR grew 8.4% and urban RevPAR 5.8%. Total expenses rose 3.9%, higher than management expected in absolute dollars, largely due to stronger business volumes.
- The company raised its 2026 RevPAR growth outlook to 4.75%–5.25%, up 175 basis points at the midpoint. It ended the quarter at 3x net debt to EBITDA and acquired the Bellmoor Inn & Spa for $31 million on October 1.
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