DiamondRock Hospitality's Q3 2025 results surpassed expectations, driven by strong out-of-room revenue growth and effective cost management, despite a slight decline in RevPAR.

• Corporate adjusted EBITDA reached $79.1 million, while adjusted FFO per share was $0.29, exceeding projections.
• Out-of-room revenues increased by 5.1%, contributing to a total RevPAR growth of 1.5%.
• Urban properties achieved RevPAR growth of 0.6%, with strong performance noted in September, highlighting a recovery trend.
• Successful refinancing efforts have led to a fully unencumbered portfolio, improving financial flexibility.
• The company continues to repurchase shares and expects a quarterly dividend consistent with a reduced payout ratio, targeting sustainable capital allocation.