DiamondRock Hospitality Co Q1 FY26 Results

We delivered first quarter results ahead of expectations despite a difficult RevPAR comparison and disruptive weather in several of our markets. The efforts of our asset management team and operating partners continue to differentiate DiamondRock, as reflected in strong returns from recent renovations, meaningful margin expansion, and our ability to enhance operating performance while limiting earnings disruption across the portfolio. Over the trailing twelve months, we generated nearly 20% growth in free cash flow per share, underscoring the impact of our disciplined operating and capital allocation strategy. We secured a new franchise agreement for the Westin Boston Seaport District, which we expect will maximize near, medium, and long‑term value for shareholders by prioritizing cash flow, strategic flexibility, and risk‑adjusted returns. We also advanced our capital recycling initiatives, with one hotel now under contract for sale. We intend to deploy these proceeds opportunistically, consistent with our commitment to allocate capital where it can drive the highest returns for shareholders. We are constructive on the demand outlook across our portfolio, supported by recent booking trends and the continued resilience of the higher‑end consumer. We raised the midpoint of our guidance largely to account for the stronger than expected results, but we are keeping a measured approach to guidance for the remainder of the year given recent geopolitical events and an uncertain macroeconomic environment. Even against this backdrop, our updated guidance marks another new FFO peak for DiamondRock.