DiamondRock Hospitality Company reported its financial results for the third quarter and the first nine months of 2025, revealing a slight decline in total revenues compared to the previous year. For the three months ended September 30, 2025, the company generated total revenues of $285.4 million, a marginal increase of $255,000 from $285.1 million in the same period of 2024. However, for the nine months ended September 30, 2025, total revenues decreased by $4.9 million to $846.0 million from $850.8 million in 2024. The decline in revenue was primarily attributed to a decrease in room revenues, which fell by $9.0 million year-over-year, largely due to the sale of the Westin Washington, D.C. City Center in February 2025.
Net income for the third quarter of 2025 was reported at $22.6 million, down from $26.6 million in the same quarter of 2024. For the nine-month period, net income increased to $75.6 million from $59.5 million in the prior year. The company’s earnings per share for the third quarter were $0.10, compared to $0.11 in the same quarter of 2024. The increase in net income for the nine months was attributed to improved operational efficiencies and a reduction in corporate expenses, which decreased significantly due to prior severance costs.
In terms of strategic developments, DiamondRock completed the sale of the Westin Washington, D.C. City Center for $92 million, which contributed to a net cash inflow of approximately $89 million after transaction costs. The company also executed a significant refinancing of its credit facilities, increasing its borrowing capacity from $1.2 billion to $1.5 billion, which provides additional liquidity for future acquisitions and capital improvements. As of September 30, 2025, DiamondRock owned 36 hotels with a total of 9,595 guest rooms, maintaining a diversified portfolio concentrated in major urban markets and destination resorts.
Operationally, the company reported a slight decrease in occupancy rates, which stood at 76.2% for the third quarter, unchanged from the previous year. Average Daily Rate (ADR) decreased marginally to $281.05 from $282.05, while Revenue per Available Room (RevPAR) also saw a slight decline to $214.21 from $214.79. The company noted that food and beverage revenues increased by 2.5% year-over-year, driven by higher banquet and catering revenues, while other revenues, including spa and parking fees, rose by 7.5%.
Looking ahead, DiamondRock remains cautious about the macroeconomic environment, including inflation and interest rate fluctuations, which could impact travel demand and operational costs. The company plans to continue its focus on capital improvements, with an expected expenditure of $85 to $90 million in 2025. Management expressed confidence in the long-term growth potential of its portfolio and aims to enhance shareholder value through disciplined capital allocation and strategic asset management.
About DiamondRock Hospitality Co
DiamondRock Hospitality Company owns and manages a portfolio of premium hotels and resorts in major U.S. urban and resort markets. As a REIT, it focuses on acquiring, renovating, and asset-managing high-quality lodging properties, primarily under global brands like Marriott, Hilton, and IHG. The company emphasizes disciplined capital allocation, asset management, and sustainable practices to deliver long-term value through dividends and capital appreciation.
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