DIAMONDROCK HOSPITALITY COMPANY REPORTS THIRD QUARTER 2026 RESULTS
DiamondRock Hospitality Co (DRH) filed an SEC Form 8-K — Results of Operations and Financial Condition. COMPANY CONTACTS Briony Quinn Chief Financial Officer (240) 744-1196 Dori Kesten Capital Markets (617) 835-8366 DIAMONDROCK HOSPITALITY COMPANY REPORTS THIRD QUARTER 2026 RESULTS Raises Full-Year Guidance Following Another Strong Quarter BETHESDA, Maryland, Tuesday, November 3, 2
How this was made
The 30-second read
Why it matters
The earnings beat and raised guidance suggest stronger cash flow and capacity for further capital deployment, supporting a positive price reaction.
Market read
The report provides fresh guidance and operational highlights that can move DRH and influence peer hotel REITs.
What to watch
Potential headwinds from rising interest rates on the company's debt financing costs.
DiamondRock Hospitality Company Reports Third Quarter 2026 Results; Raises Full-Year Guidance Following Another Strong Quarter
Third-quarter comparable RevPAR increased 6.6%, comparable Hotel Adjusted EBITDA increased 12.5%, Adjusted FFO per diluted share increased 10.3%, and the Company raised its full-year 2026 outlook.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Three months ended September 30, 2026: Total revenuesGAAP | $297.6M | – | 4.3 % |
| Three months ended September 30, 2026: Rooms revenueGAAP | $195.5M | – | – |
| Three months ended September 30, 2026: Food and beverage revenueGAAP | $72.17M | – | – |
| Three months ended September 30, 2026: Other revenueGAAP | $29.98M | – | – |
| Three months ended September 30, 2026: Total operating expensesGAAP | $246.5M | – | – |
| Three months ended September 30, 2026: Corporate expensesGAAP | $10.93M | – | – |
| Three months ended September 30, 2026: Interest expenseGAAP | $14.65M | – | – |
| Three months ended September 30, 2026: Income tax expenseGAAP | $4.10M | – | – |
| Three months ended September 30, 2026: Net incomeGAAP | $33.41M | – | – |
| Three months ended September 30, 2026: Net income attributable to common stockholdersGAAP | $33.3M | – | 65.7% |
| Three months ended September 30, 2026: Earnings per diluted shareGAAP | $0.16 per diluted share | – | 60.0% |
| Three months ended September 30, 2026: Diluted weighted-average common shares outstandingGAAP | 207,417,547 | – | – |
| Three months ended September 30, 2026: Adjusted EBITDAnon-GAAP | $84.8M | – | 7.2% |
| Three months ended September 30, 2026: Adjusted FFOnon-GAAP | $66.1M | – | 11.7% |
| Three months ended September 30, 2026: Adjusted FFO per diluted sharenon-GAAP | $0.32 | – | 10.3% |
| Three months ended September 30, 2026: Comparable ADRother | $ 290.46 | – | 3.8 % |
| Three months ended September 30, 2026: Comparable occupancyother | 77.8 % | – | 2.0 % |
| Three months ended September 30, 2026: Comparable RevPARother | $226.01 | – | 6.6% |
| Three months ended September 30, 2026: Comparable Total RevPARother | $344.13 | – | 6.5% |
| Three months ended September 30, 2026: Comparable Room Revenuesother | $ 195.5 | – | 6.5 % |
| Three months ended September 30, 2026: Comparable Total Revenuesother | $ 297.6 | – | 6.4 % |
| Three months ended September 30, 2026: Comparable Hotel Operating Expensesother | $ 205.9 | – | 3.9 % |
| Three months ended September 30, 2026: Comparable Hotel Adjusted EBITDAnon-GAAP | $91.7M | – | 12.5% |
| Three months ended September 30, 2026: Comparable Hotel Adjusted EBITDA Marginnon-GAAP | 30.81% | – | 166 basis points |
| Nine months ended September 30, 2026: Total revenuesGAAP | $874.1M | – | 3.3 % |
| Nine months ended September 30, 2026: Net income attributable to common stockholdersGAAP | $138.3M | – | 103.7% |
| Nine months ended September 30, 2026: Earnings per diluted shareGAAP | $ 0.67 | – | 103.0 % |
| Nine months ended September 30, 2026: Adjusted EBITDAnon-GAAP | $253.3M | – | 12.2% |
| Nine months ended September 30, 2026: Adjusted FFOnon-GAAP | $204M | – | 19.2% |
| Nine months ended September 30, 2026: Adjusted FFO per diluted sharenon-GAAP | $ 0.98 | – | 19.5 % |
| Nine months ended September 30, 2026: Comparable RevPARother | $ 218.91 | – | 5.4 % |
| Nine months ended September 30, 2026: Comparable Total RevPARother | $ 338.37 | – | 5.0 % |
| Nine months ended September 30, 2026: Comparable Hotel Adjusted EBITDAnon-GAAP | $ 270.8 | – | 14.6 % |
| Nine months ended September 30, 2026: Comparable Hotel Adjusted EBITDA Marginnon-GAAP | 31.18 % | – | 264 bps |
| Nine months ended September 30, 2026: Adjusted FFO per diluted share excluding one-time benefitnon-GAAP | $0.95 | – | – |
Full year 2026 outlook
- NoteComparable RevPAR Growth: 4.75% to 5.25%
- NoteComparable Total RevPAR Growth: 4.75% to 5.25%
- NoteAdjusted EBITDA (in millions): $322.0 to $327.0
- NoteAdjusted FFO (in millions): $256.5 to $261.5
- NoteAdjusted FFO per diluted share: $1.24 to $1.26
- NoteThe Bellmoor Inn & Spa is expected to contribute approximately $0.2 million to Adjusted EBITDA and Adjusted FFO in the fourth quarter of 2026
- NoteFull year cash corporate expenses of approximately $28.0 million, which excludes share-based compensation
- NoteFull year cash interest expense of approximately $58.5 million to $59.5 million
- NoteFully diluted weighted average common shares and units of 207.5 million
Capital returns
- The Company increased its quarterly common dividend by 22% to $0.11 per share.
- The Company's Board of Directors declared a third quarter cash dividend of $0.11 per share to stockholders of record as of September 30, 2026.
- The third quarter dividend was paid on October 14, 2026.
- During the nine months ended September 30, 2026, the Company repurchased approximately 0.2 million shares of its common stock for $1.9 million, at an average price of $9.79 per share.
- The Company has $299.4 million of remaining capacity under its $300.0 million share repurchase program, which was announced on April 30, 2026.
What drove it
- Comparable ADR increased 3.8 % and comparable occupancy increased 2.0 % in the third quarter, producing 6.6% comparable RevPAR growth.
- Comparable Hotel Operating Expenses increased 3.9 %, below the 6.4 % increase in comparable Total Revenues.
- Comparable Hotel Adjusted EBITDA increased 12.5% and comparable Hotel Adjusted EBITDA Margin increased 166 basis points.
- The Company acquired The Bellmoor Inn & Spa on October 1, 2026 for total consideration of $31.0 million.
- The Bellmoor purchase price represented a 10.4x multiple of trailing 12-month August 2026 Hotel Adjusted EBITDA and an 8.6% capitalization rate on Hotel NOI.
- The Company expects the hotel to generate a stabilized Hotel NOI yield of approximately 9.5% following asset management initiatives and planned off-season capital improvements.
Concerns
- The nine months ended September 30, 2026 included a one-time benefit of approximately $6.9 million recognized in the second quarter of 2026 from a favorable settlement of multi-year property tax appeals for the Company's two Chicago hotels.
- Excluding the $6.9 million benefit, comparable Hotel Operating Expenses increased 2.2%, comparable Hotel Adjusted EBITDA Margin increased 185 basis points and Adjusted FFO per diluted share was $0.95 for the nine months ended September 30, 2026.
- Full-year guidance assumes no additional acquisitions, dispositions, or share repurchases.
- The outlook reflects current operating trends and macroeconomic conditions and is subject to the risks disclosed in the Company's SEC filings.
- The Company expects to complete the Westin San Diego Bayview and Atlanta Marriott Alpharetta projects in the first quarter of 2027.
What to watch
- Fourth-quarter booking pace and delivery against full-year comparable RevPAR growth guidance of 4.75% to 5.25%.
- The Bellmoor Inn & Spa contribution of approximately $0.2 million to fourth-quarter Adjusted EBITDA and Adjusted FFO.
- Execution and completion timing for renovations at Westin San Diego Bayview and Atlanta Marriott Alpharetta.
- Full-year cash interest expense of approximately $58.5 million to $59.5 million.
- The expected fourth-quarter stub dividend, which depends on estimated 2026 taxable income.
Balance sheet and cash flow
- As of September 30, 2026, cash and cash equivalents were $ 139,963.
- As of September 30, 2026, total debt outstanding was $1.1 billion, consisting of three unsecured term loans with a weighted average interest rate of 5.1%.
- The Company had $400.0 million of available capacity under its undrawn revolving credit facility.
- Debt, net of unamortized debt issuance costs, was $ 1,099,131 as of September 30, 2026.
- Net debt to EBITDA was 3.0x as of September 30, 2026.
- The Company invested $59.2 million in capital improvements during the nine months ended September 30, 2026.
- The Company currently expects to invest approximately $75.0 to $80.0 million in capital improvements at its hotels in 2026.
Analysis
DiamondRock reported broad third-quarter operating strength. Comparable ADR increased 3.8 % and occupancy increased 2.0 %, driving comparable RevPAR growth of 6.6% to $226.01 and comparable Total RevPAR growth of 6.5% to $344.13. Comparable total revenues increased 6.4 % to $ 297.6, while comparable hotel operating expenses increased 3.9 % to $ 205.9. This produced 12.5% growth in comparable Hotel Adjusted EBITDA to $91.7 million and a 166 basis-point increase in comparable Hotel Adjusted EBITDA Margin to 30.81%.
Consolidated GAAP results also improved. Third-quarter total revenues were $ 297,605 versus $ 285,384, net income attributable to common stockholders was $33.3 million versus $20.1 million, and diluted EPS was $0.16 versus $0.10. Adjusted EBITDA increased 7.2% to $84.8 million, while Adjusted FFO increased 11.7% to $66.1 million and Adjusted FFO per diluted share increased 10.3% to $0.32.
For the first nine months, comparable RevPAR increased 5.4 % and comparable Hotel Adjusted EBITDA increased 14.6 % to $ 270.8. Nine-month net income attributable to common stockholders increased 103.7 % to $ 138.3 and Adjusted FFO per diluted share increased 19.5 % to $ 0.98. The reported nine-month period included a one-time benefit of approximately $6.9 million from favorable property tax appeal settlements for the two Chicago hotels; excluding that benefit, Adjusted FFO per diluted share was $0.95.
Capital allocation included $59.2 million of capital improvements through the first nine months, a $31.0 million acquisition of The Bellmoor Inn & Spa on October 1, 2026, and $1.9 million of share repurchases during the first nine months. The Company increased its quarterly common dividend by 22% to $0.11 per share. At September 30, it reported $1.1 billion of total debt outstanding, approximately $140.0 million of unrestricted cash, and $400.0 million of undrawn revolving-credit capacity.
Management raised full-year 2026 guidance. The updated range calls for 4.75% to 5.25% comparable RevPAR growth, $322.0 to $327.0 million of Adjusted EBITDA, $256.5 to $261.5 million of Adjusted FFO, and $1.24 to $1.26 of Adjusted FFO per diluted share. The outlook includes an anticipated approximately $0.2 million fourth-quarter contribution from The Bellmoor Inn & Spa and assumes no additional acquisitions, dispositions, or share repurchases.
Management, verbatim
We delivered another strong quarter, exceeding our expectations with healthy demand and higher rates across both transient and group segments. Combined with the operating efficiencies we have built across the portfolio, that drove outsized Hotel Adjusted EBITDA growth and, importantly, higher free cash flow. Given the strength of our third quarter results and our fourth quarter booking pace, we are raising our 2026 guidance again.
Jeffrey J. Donnelly, Chief Executive Officer of DiamondRock Hospitality Company
Not in the filing
stated, not guessed- Operating cash flow was not reported in the provided document.
- Free cash flow value was not reported in the provided document.
- GAAP gross profit and gross margin were not reported in the provided document.
- Non-GAAP gross margin was not reported in the provided document.
- A tax rate was not reported in the provided document.
- Segment reporting was not provided in the document.
- Prior-quarter comparisons for the reported actual operating results were not provided.
- A previous earnings release outlook section was not provided; therefore no actual-versus-prior-guidance comparisons are included.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
DiamondRock Hospitality Co (Nasdaq: DRH) filed a Form 8‑K reporting its Q3 2026 earnings, a 22% dividend increase, and a $31 million hotel acquisition.
Ticker impact
DiamondRock Hospitality reported Q3 2026 results and raised full-year guidance, showing strong earnings growth and a new hotel acquisition.
likely upward pressure as investors price in the raised guidance and acquisition outlook
The company disclosed higher earnings, increased dividend and a strategic acquisition, all of which support a bullish outlook and can drive the stock higher in after‑hours trading.
Market effects
The REIT sector may see a lift as DiamondRock's strong performance highlights demand for premium hotel assets.
U.S. hospitality and real‑estate markets could benefit from the demonstrated resilience in occupancy and RevPAR.
Limited to U.S. hotel REITs; no immediate global macro impact.
Counterpoint
If the acquisition integration faces delays, the raised guidance could be overly optimistic.
Key entities
- CompanyDiamondRock Hospitality Co
U.S. hotel REIT that owns 35 premium hotels and resorts.
- AssetThe Bellmoor Inn & Spa
79‑room independent resort acquired for $31 million.
