| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 318.29 | 23.3% | 4.1% |
| Total Income | 318.29 | 23.3% | 4.1% |
| Expenditure | 244.94 | 6.7% | 1.9% |
| PBT | 92.44 | 534.0% | 119.9% |
| Net Profit | 90.48 | 525.7% | 121.5% |
| OPM | — | ||
| NPM | 28.43% | 22.82pp | 15.07pp |
| EPS | 0.44 | 528.6% | 131.6% |
DiamondRock Hospitality Company Reports Q2 2026 Results, Raises Full-Year Guidance and Increases Dividend
31 Jul 2026 · 31 Jul, 1:44 am
Summary
DiamondRock Hospitality Company reported strong second quarter 2026 results, with net income attributable to common stockholders soaring by 135.7% to $90.5 million and Adjusted EBITDA increasing by 19.2% to $107.9 million year-over-year. The company saw significant growth in key performance indicators like RevPAR, which rose 7.0%, and Adjusted FFO per diluted share, up 25.7%. Management highlighted the earnings power of its portfolio, broad-based strength in demand, and the effectiveness of its operating strategy, leading to an increase in full-year guidance and a 22% hike in the quarterly common dividend.
Key Highlights
- 1
Net income attributable to common stockholders was $90.5 million, or $0.44 per diluted share, an increase of 135.7% and 144.4%, respectively, compared to the second quarter of 2025.
- 2
Adjusted EBITDA for the second quarter of 2026 was $107.9 million, an increase of 19.2% compared to the second quarter of 2025.
- 3
Adjusted FFO per diluted share increased by 25.7% to $0.44 compared to the second quarter of 2025.
- 4
Comparable RevPAR increased by 7.0% to $240.79 compared to the second quarter of 2025.
- 5
Comparable Hotel Adjusted EBITDA increased by 20.9% to $113.2 million, benefiting from a $6.9 million settlement of property tax appeals for its Chicago hotels.
- 6
Comparable Hotel Adjusted EBITDA Margin increased by 457 basis points to 35.76% compared to the second quarter of 2025.
- 7
The Company completed the sale of the Courtyard New York Manhattan/Fifth Avenue for $33.0 million on May 1, 2026.
- 8
The Company is raising its full-year 2026 guidance for Adjusted EBITDA and Adjusted FFO per share.
Management Comments
Jeffrey J. Donnelly
Our second quarter demonstrated the earnings power of the DiamondRock portfolio. We delivered 7% RevPAR growth and held overall hotel expense growth to just 1.8%, driving exceptional margin expansion and earnings growth. While the World Cup provided a beneficial tailwind in several markets, our performance reflected much more than a single event. We saw broad-based strength in both group and transient demand, demonstrating the quality of our portfolio and the effectiveness of our operating strategy. Over the past twelve months, our free cash flow has increased 30%, providing further evidence that the DiamondRock 2.0 strategy is delivering results. Our focus remains on growing free cash flow through operational excellence, disciplined investment, and thoughtful capital allocation, which we believe is the clearest path to creating long-term shareholder value. Given the strength of our second quarter results and our confidence in the outlook for the remainder of the year, we are increasing our quarterly common dividend by more than 20% and raising our full-year guidance. We believe DiamondRock is well positioned to continue delivering strong earnings, growing free cash flow, and creating long-term value for our shareholders.
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