DiamondRock Hospitality Company reported a total revenue of $1.13 billion for the fiscal year ending December 31, 2024, marking a 5.1% increase from $1.07 billion in 2023. The growth was driven by a $25.2 million rise in room revenues, attributed to improved occupancy rates and increased average daily rates (ADR), which rose to $284.63 from $281.12. The company also experienced an 8.4% increase in food and beverage revenues, totaling $281.7 million, reflecting a resurgence in group business and catering services. However, net income attributable to common stockholders decreased to $38.2 million, down from $76.5 million in the previous year, primarily due to significant impairment losses of $34.2 million related to the Westin Washington D.C. City Center.
In terms of operational metrics, DiamondRock's occupancy rate improved slightly to 72.8% from 72.0% in 2023, while revenue per available room (RevPAR) increased by 2.5% to $207.30. The company’s portfolio consisted of 37 hotels with 10,004 rooms across 26 markets in the U.S. as of December 31, 2024. Notably, the company sold the Westin Washington D.C. City Center for $92 million in February 2025, which was part of a strategic decision to optimize its asset portfolio.
During the fiscal year, DiamondRock made significant investments in its properties, with capital expenditures amounting to approximately $81.6 million. This included renovations and repositioning efforts at several hotels, such as the rebranding of the Hilton Burlington Lake Champlain to Hotel Champlain Burlington. The company anticipates spending between $85 million and $95 million on capital improvements in 2025, focusing on enhancing the quality and appeal of its hotel offerings.
The company maintained a conservative capital structure, with total debt of $1.1 billion as of December 31, 2024, and a weighted average interest rate of 5.21%. DiamondRock's liquidity position was strong, with $584.3 million available as of the end of the year. The company is actively pursuing financing options to address upcoming debt maturities, particularly three mortgage loans due in 2025.
Looking ahead, DiamondRock expects moderate U.S. economic growth in 2025, with potential challenges from elevated interest rates and inflation impacting operational costs. However, the company remains optimistic about the recovery of corporate and group travel demand, which is anticipated to drive revenue growth. The strategic focus will continue to be on maximizing asset performance and exploring opportunities for acquisitions and renovations to enhance long-term shareholder value.
About DiamondRock Hospitality Co
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