DiamondRock Hospitality Company (DRH) Earnings Call Transcripts

DiamondRock Hospitality Company's Latest Earnings Call - Q1 FY2026

In the first quarter of 2026, DiamondRock Hospitality Company (DRH) reported revenue growth that exceeded expectations, driven by a 2% increase in comparable RevPAR and a 2.5% increase in total RevPAR. The company achieved corporate adjusted EBITDA of $60.6 million and adjusted FFO per share of $0.22, reflecting a significant improvement in margins. Management raised its 2026 RevPAR guidance by 50 basis points to a range of 1.5% to 3.5%, signaling confidence in continued demand despite challenging comparisons from the previous year.

Reported metrics

Guidance from management

Management raised its 2026 RevPAR guidance to 1.5% to 3.5% and adjusted EBITDA guidance to $296 million to $308 million, reflecting stronger-than-expected first quarter performance and favorable insurance renewal terms.

What management said

Shovel ready all the time. So I would say that share repurchases are really the most appealing use. I think at the margin, you're starting to see some acquisition opportunities get there, but I think you need a healthier spread to justify that. So I guess to reiterate, share repurchases would be the most appealing.

I think, Jack, we've had some very good recent history, I think, leaning into productivity. And candidly, we're not necessarily seeing it on the wage rate side, we've been able to keep our labor rates relatively low because we've been finding less hours worked throughout the portfolio through productivity gains. And that's been a myriad of different places both in housekeeping productivity, focusing on hours of opera...

What analysts pressed on

Analysts expressed concerns regarding the sustainability of group revenue growth, particularly given the tough comparisons from the previous year. There were also questions about the potential impact of rising operating expenses on margins moving forward.

Main topics on the call

• Revenue Growth Acceleration — DiamondRock's comparable RevPAR increased by 2%, exceeding the company's outlook of flat growth. Management noted, "the portfolio performs better than anticipated," highlighting a sequential improvement in revenue each m...
• Strong Performance in Resort Portfolio — RevPAR at resorts grew 3.6%, significantly outperforming urban hotels. Management stated, "our resorts were due for an inflection in 2026 after 3 years of trailing the urban portfolio," indicating a positive shift in per...
• Cost Management and Margin Improvement — Total operating expenses grew less than 1%, leading to a 127 basis point improvement in total EBITDA margins. The company achieved a corporate adjusted EBITDA margin increase of 225 basis points, showcasing effective cos...
• Guidance Update — Management raised its 2026 RevPAR guidance by 50 basis points to 1.5% to 3.5% and adjusted EBITDA guidance to $296 million to $308 million. This reflects stronger-than-expected first quarter performance and favorable ins...

Read the full DiamondRock Hospitality Company transcript (Q1 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 29 DiamondRock Hospitality Company earnings call transcripts on record, spanning February 21, 2020 to July 31, 2026. Based on this history, DiamondRock Hospitality Company reports quarterly. The most recent call on file is dated July 31, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

DRH

Exchange

NasdaqGS

Country

US

Sector

Real Estate

Industry

Hotel and Resort REITs

Calls on record

29

First call

February 21, 2020

Most recent

July 31, 2026

Reporting cadence

quarterly