DiamondRock reports Q2 adjusted FFO 32c, consensus 34c

Reports Q2 revenue $289.3M, consensus $297.09M. Comparable RevPAR was $226.41, a 0.5% increase over 2022 and a 8.0% increase over 2019. “The DiamondRock portfolio delivered a new record for comparable revenues in the quarter even as it made major investments into its portfolio to secure future performance. Our urban portfolio delivered strong total revenue growth of 7.1% with solid performance from group, but the rate of improvement in business transient demand appears to be moderating. Competition from international destinations and cruise lines led our smaller portfolio of resorts to rebalance to a ‘new normal’ with total revenues declining 8.3%. However, revenues from our resorts remained 33.1% ahead of the comparable period in 2019 as destination resorts remain the biggest winner from an acceleration in the secular demand for leisure travel. After quarter end, we completed the major repositioning of The Dagny in Boston as well as acquiring a very attractive boutique resort in Montana,” said Mark W. Brugger, CEO.