Fri, May 2, 4:13 PM (13 days ago)
**DiamondRock Hospitality Company (DRH) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** Total revenue decreased by 0.6% to $254.9 million, with rooms revenue slightly down by 0.2% to $163.1 million. Food and beverage revenue decreased by 2.3% to $66.8 million, while other revenue increased by 1.5% to $24.9 million. - **Profit Margins:** Net income increased by 42.8% to $11.9 million, with earnings per share (EPS) rising from $0.03 to $0.05. Income before taxes increased by 52.7% to $11.1 million. - **Cash Flow:** Net cash provided by operating activities was $27.6 million, with significant cash inflows from investing activities ($63.5 million) due to the sale of the Westin Washington, D.C. City Center. Net cash used in financing activities was $69.6 million, primarily for distributions and share repurchases. - **Earnings Changes:** Net income attributable to common stockholders increased by 60.6% to $9.4 million. Comprehensive income attributable to the company increased by 11.3% to $8.7 million. **Key Metrics and Trends:** - **Occupancy and ADR:** Occupancy slightly decreased by 0.9% to 66.6%, while average daily rate (ADR) increased by 3.2% to $277.01. RevPAR increased by 2.0% to $184.60. - **Debt and Liquidity:** Total debt was $1.1 billion with a weighted average interest rate of 5.08% and a weighted average maturity of approximately 1.3 years. The company has $400 million of borrowing capacity under its senior unsecured revolving credit facility. - **Capital Expenditures:** The company invested $25.6 million in capital improvements and expects to spend between $85 to $95 million in 2025, with significant projects planned for several hotels. - **Share Repurchases:** The company repurchased 1.4 million shares for $11.1 million under its share repurchase program, with $158.1 million of authorized capacity remaining. **Uncertainties and Future Operations:** - **Economic Factors:** The company is monitoring economic conditions, including inflation, interest rates, and potential tariffs, which could impact operating costs and financing. - **Hotel Performance:** The company is focused on asset management, prudent financial strategy, and disciplined capital allocation to drive long-term stockholder returns. - **Liquidity and Financing:** The company plans to meet liquidity requirements through cash flow from operations, borrowings, equity issuances, and potential property dispositions. The company is actively pursuing financing to repay maturing mortgage loans. **Ticker:** DRH **Note:** Amounts are in thousands, except per share amounts. The company's financial performance is subject to various risks and uncertainties, including economic conditions, competitive pressures, and operational challenges.