DiamondRock Hospitality Company reported a total revenue of $1.12 billion for the fiscal year ending December 31, 2025, a slight decrease of 0.8% from $1.13 billion in 2024. The company's rooms revenue fell by 1.9% to $728.6 million, primarily due to the sale of the Westin Washington D.C. City Center in February 2025, which accounted for a $22.6 million decline. However, this was partially offset by an increase of $8.4 million from the acquisition of the AC Hotel Minneapolis Downtown in November 2024. The company’s average daily rate (ADR) increased by 1.3% to $287.51, while revenue per available room (RevPAR) rose by 0.4% to $206.86.
In terms of profitability, DiamondRock reported a net income of $101.9 million, a significant increase from $48.3 million in the previous year. This growth was attributed to a decrease in corporate expenses, which fell from $52.9 million in 2024 to $34.4 million in 2025, largely due to severance costs incurred in the prior year. The company also recorded an impairment loss of $1.1 million in 2025, compared to $34.2 million in 2024, reflecting improved asset management and operational efficiency.
Strategically, DiamondRock continues to focus on enhancing its portfolio through renovations and repositioning efforts. In 2025, the company invested approximately $81.6 million in capital improvements, including renovations at several properties. Looking ahead, the company plans to allocate between $80 million and $90 million for capital improvements in 2026, with significant projects already underway at various hotels. The company’s portfolio consists of 35 hotels with 9,595 rooms across 26 markets in the United States, primarily targeting urban and resort destinations.
Operationally, DiamondRock's hotels experienced an average occupancy rate of 71.9% in 2025, a slight decline from 72.6% in 2024. The company remains optimistic about travel demand in 2026, anticipating steady growth driven by higher rates and a favorable holiday calendar, including events like the FIFA World Cup. However, the company also acknowledges ongoing challenges such as elevated operating costs and potential impacts from macroeconomic conditions on consumer spending.
Looking forward, DiamondRock aims to maintain its conservative capital structure while exploring opportunities for strategic acquisitions and capital projects. The company’s management remains committed to delivering long-term stockholder returns through a combination of dividends and capital appreciation, despite the competitive landscape and economic uncertainties facing the hospitality industry.
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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