DiamondRock Hospitality Reports Q2 2025 Revenue of $305.7M, Net Income Increases to $41M

DiamondRock Hospitality Company reported its financial results for the second quarter of 2025, revealing a total revenue of $305.7 million, a decrease of 1.2% from $309.3 million in the same period last year. The decline was primarily driven by a 2.6% drop in room revenue, which fell to $198.2 million from $203.5 million. However, food and beverage revenue saw a slight increase, rising to $78.8 million from $78.1 million, while other revenues grew to $28.7 million from $27.7 million. The company’s net income for the quarter was $41.0 million, compared to $24.6 million in the prior year, resulting in earnings per share of $0.19, up from $0.10.

For the first half of 2025, DiamondRock's total revenue was $560.6 million, down from $565.7 million in the same period of 2024. The company reported a net income of $53.0 million, significantly higher than $33.0 million in the previous year. The increase in profitability was attributed to a reduction in operating expenses, which decreased to $479.7 million from $502.3 million, largely due to lower corporate expenses and interest costs. The company’s total assets as of June 30, 2025, were $3.06 billion, down from $3.17 billion at the end of 2024, reflecting the sale of the Westin Washington, D.C. City Center for $92 million earlier in the year.

In terms of strategic developments, DiamondRock completed the sale of the Westin Washington, D.C. City Center, which had been classified as an asset held for sale in the previous fiscal period. The company also repaid the mortgage loan secured by the Worthington Renaissance Fort Worth Hotel in May 2025 and the Hotel Clio in July 2025, utilizing proceeds from its senior unsecured revolving credit facility. Following these transactions, DiamondRock entered into an amended credit facility that increased its borrowing capacity from $1.2 billion to $1.5 billion, extending its maturity schedule and providing additional liquidity.

Operationally, DiamondRock owned 36 hotels with a total of 9,595 guest rooms as of June 30, 2025. The company reported an occupancy rate of 71.7% for the first half of the year, slightly down from 72.4% in the previous year, while the average daily rate (ADR) increased by 2.1% to $287.00. The revenue per available room (RevPAR) also improved by 1.0% to $205.65. The company’s focus on asset management and strategic capital improvements is expected to enhance its portfolio's performance in the coming quarters.

Looking ahead, DiamondRock remains cautious about the macroeconomic environment, including inflation and interest rate volatility, which could impact travel demand and operational performance. The company plans to continue its disciplined capital allocation strategy, with anticipated capital expenditures of $85 million to $95 million for 2025, aimed at enhancing its hotel properties. The management is committed to maintaining a conservative capital structure while seeking opportunities for growth through acquisitions and renovations.