DiamondRock Hospitality Co has recently released its 10-K report, providing an insight into the company's financial performance and operations. As a self-advised real estate investment trust, DiamondRock owns a portfolio of 36 premium quality hotels and resorts with approximately 9,600 rooms, strategically positioned in leisure destinations and top gateway markets. The company operates under leading global brand families as well as independent boutique hotels in the lifestyle segment.
In its 10-K report, DiamondRock Hospitality Co's management's discussion and analysis of financial condition and results of operations highlighted key indicators used to evaluate the company's financial condition and operating performance. These indicators include occupancy percentage, average daily rate (ADR), rooms revenue per available room (RevPAR), total revenue per available room (Total RevPAR), earnings before interest, income taxes, depreciation, and amortization (EBITDA), funds from operations (FFO), and adjusted FFO.
The 10-K report also provides a detailed breakdown of the operating information for each of the hotels owned by DiamondRock Hospitality Co in 2025, including their location, number of rooms, occupancy percentage, ADR, RevPAR, and Total RevPAR. For instance, the Chicago Marriott Downtown Magnificent Mile had an occupancy percentage of 63.2%, an ADR of $262.61, a RevPAR of $166.04, and a Total RevPAR of $276.52, representing a 2.0% increase from 2024.
Looking ahead to 2026, DiamondRock Hospitality Co expects the U.S. economy to deliver moderate growth, with travel demand remaining relatively steady and RevPAR growth being primarily driven by higher rates. The company anticipates benefiting from the ownership of a high-quality portfolio, return on investments from recent renovations, rebrandings, and repositionings, as well as incremental travel demand from favorable holiday calendars and one-time events.
In terms of financial performance, the 10-K report compares the year ended December 31, 2025, to the year ended December 31, 2024. It notes that while total revenues decreased by 0.8%, the company's key hotel operating statistics remained relatively stable, with a 1.2% increase in Total RevPAR. However, the report also highlights a decrease in rooms revenues, largely attributable to the disposition of certain properties, as well as changes in food and beverage revenues and other departmental and support expenses.
As a result of these announcements, the company's shares have moved 0.11% on the market, and are now trading at a price of $9.31. For more information, read the company's full 10-K submission here.
