Highlights

  • Second quarter revenue rose 4.1% to $318.3 million, with comparable RevPAR up 6.9% to $241.17.
  • GAAP net income reached $90.8 million, or $0.44 per diluted share, including a $31.6 million gain on a hotel sale.
  • It sold a Manhattan Courtyard hotel on May 1 for $33.0 million and authorized a $300 million share buyback.
  • Adjusted EBITDA, a non-GAAP measure, rose to $107.9 million, and Adjusted FFO available to common holders reached $91.8 million.

DiamondRock Hospitality Company (NASDAQ:DRH) shares were trading near their 52-week high at USD 14.00 on October 21, 2026, up 1.52%. The hotel owner sold a Manhattan hotel on May 1, authorized a new $300 million share repurchase program effective the same day, and filed its second quarter 2026 report on July 30.

Based in Bethesda, Maryland, DiamondRock is a Maryland corporation, formed in 2004, that describes itself as a self-managed lodging REIT owning premium hotels and resorts. At June 30, 2026, it owned 34 hotels with about 9,400 guest rooms across 26 U.S. markets, with nearly 40% of the portfolio run as independent hotels and the rest under brands such as Marriott. All its hotels are run by third-party managers, and it reports a single hotel ownership segment. Its fiscal year ends December 31.

Higher Rates and Occupancy, Plus a Property Tax Benefit

Revenue for the quarter ended June 30, 2026 was $318.3 million, up from $305.7 million. Rooms revenue grew 4.8% to $207.7 million, food and beverage rose 2.5% to $80.8 million and other revenue climbed 4.1% to $29.8 million. Comparable occupancy was 78.2% against 76.5%, average daily rate rose 4.5% to $308.49, and Total RevPAR increased 5.5% to $369.63. The company said higher rates and the repositioned L'Auberge de Sedona drove the rooms increase.

Hotel operating expenses fell 3.0% to $205.7 million, helped by property tax appeal settlements at its Chicago properties, which produced a net benefit of $6.9 million after incentive management fees. Management fees rose 19.7% to $8.9 million. Net income was $90.8 million, versus $41.0 million, and net income attributable to common stockholders was $90.5 million, or $0.44 per diluted share, against $0.18. The sale gain of $31.6 million contributed to that result. Interest expense eased to $14.4 million from $14.9 million.

Non-GAAP measures also improved. Adjusted EBITDA was $107.9 million versus $90.5 million, and Hotel Adjusted EBITDA was $113.7 million versus $95.4 million. For six months, revenue was $576.4 million, up 2.8%, net income was $105.3 million, and RevPAR rose 4.7%. The filing says performance varied by property, with some resort and urban hotels reporting lower Total RevPAR for the half.

Hotel Sale, Buyback and Balance Sheet

On May 1, the company sold the Courtyard New York Manhattan/Fifth Avenue for $33.0 million, receiving net proceeds of $29.9 million. In April its board approved a $300 million repurchase program running to May 1, 2028, replacing a $200 million authorization from 2024. It bought 189,265 shares for $1.9 million in the six months, and $299.4 million remained available on July 30.

Debt totaled $1.1 billion at a weighted average rate of 4.90%, including swaps, with a weighted average maturity near 3.2 years if extensions are exercised. The portfolio carries no secured debt. Unrestricted cash was $106.0 million, restricted cash was $39.9 million and nothing was drawn on the $400.0 million revolver. Operating cash flow for six months was $101.5 million, and capital spending was $40.3 million. Quarterly dividends of $0.09 per share were paid on April 14 and July 14, after $0.12 in January.

Outlook and Planned Projects

The report gives no numerical earnings guidance. Management says the rest of 2026 remains subject to economic, geopolitical and market uncertainty, including conditions in the Middle East, inflation, labor markets and interest rates, and that travel demand was strong through the first half. It expects 2026 capital spending of $75.0 million to $85.0 million. A lobby renovation at the Westin San Diego Bayview is expected to start in the third quarter, and guestroom work at the Atlanta Marriott Alpharetta in the fourth quarter. These are company expectations.