DiamondRock Hospitality Reports Strong Q2 Performance and Raises Full-Year Outlook
DiamondRock Hospitality (NYSE:DRH) reported strong second-quarter results for 2026, with a 7% increase in comparable RevPAR driven by broad-based demand across resort, urban hotel, and group revenue segments. The company's Hotel Adjusted EBITDA margins expanded by 240 basis points due to operating leverage, while adjusted FFO per share reached $0.44, including a $0.03 benefit from property-tax settlements in Chicago. DiamondRock raised its full-year outlook for RevPAR growth to between 2.5% and 4%, with Adjusted EBITDA expected to range from $310 million to $320 million and adjusted FFO per share projected at $1.18–$1.23. The company also increased its quarterly dividend by 22% to $0.11 per share, reflecting confidence in ongoing performance. The firm is evaluating potential acquisitions and dispositions but may act as a net seller this year. Management noted continued strength from higher-income travelers and productivity improvements across the portfolio rather than cost reductions.
Tickers: $DRH