DiamondRock Hospitality Company reported its financial results for the first quarter of 2025, revealing total revenues of $254.9 million, a slight decrease of 0.6% from $256.4 million in the same period of 2024. The company's net income for the quarter was $11.9 million, or $0.05 per share, compared to $8.4 million, or $0.03 per share, in the prior year. This increase in profitability was attributed to a reduction in operating expenses, which fell to $230.1 million from $234.0 million, primarily due to lower food and beverage costs and streamlined corporate expenses.
The company experienced notable changes in its operational metrics. Room revenue decreased marginally to $163.1 million from $163.5 million, while food and beverage revenue also saw a decline, dropping to $66.8 million from $68.4 million. However, other revenue sources increased to $24.9 million from $24.5 million, driven by the implementation of new resort fees and increased parking revenue. The overall occupancy rate for the quarter was 66.6%, down from 67.5% in the previous year, while the average daily rate (ADR) rose by 3.2% to $277.01, contributing to a 2.0% increase in revenue per available room (RevPAR) to $184.60.
In terms of strategic developments, DiamondRock completed the sale of the Westin Washington, D.C. City Center for $92 million in February 2025, which resulted in net proceeds of approximately $89 million. This sale was part of the company's strategy to optimize its portfolio and focus on high-growth markets. As of March 31, 2025, the company owned 36 hotels with a total of 9,595 guest rooms, maintaining a strong presence in major urban and resort locations across the United States.
The company’s financial position remains stable, with total assets amounting to $3.1 billion and total liabilities of $1.5 billion as of March 31, 2025. DiamondRock's debt, net of unamortized debt issuance costs, was reported at $1.1 billion, with a weighted average interest rate of 5.08%. The company is actively pursuing financing options to manage upcoming debt maturities, including a mortgage loan due in May 2025.
Looking ahead, DiamondRock remains cautious about the macroeconomic environment, including inflation and interest rate fluctuations, which could impact its operations and financial performance. The company plans to continue its focus on capital improvements and strategic acquisitions while maintaining a conservative capital structure to enhance shareholder value.
About DiamondRock Hospitality Co
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