Diamondrock Hospitality Co reported strong second-quarter 2026 results with RevPAR growth of 7%, driven by broad-based strength across all customer segments. The company achieved significant operating leverage as hotel operating expenses rose just 1.8% against 5.5% revenue growth, leading to 240 basis points of margin expansion. Management raised its full-year 2026 guidance for RevPAR growth, adjusted EBITDA, and adjusted FFO per share, and increased the quarterly common dividend by 22% to $0.11 per share. The company sees an improving transaction market with a more active acquisition and disposition pipeline, though bid gaps have widened to 10-15% on some properties, making accretive deals challenging. Diamondrock maintains a conservative balance sheet with no debt maturities until 2029 and approximately $500 million of incremental investment capacity within its target leverage range.
Diamondrock Hospitality CompanyStrong Q2 results with RevPAR growth, margin expansion, raised guidance, and increased dividend.