DiamondRock reports Q3 AFFO 29c, consensus 25c

Reports Q3 revenue $285.4M, consensus $277.72M. CEO Jeffrey J. Donnelly said, “We are pleased to report that Q3 results exceeded our expectations. A rebound in short term group and business transient demand contributed to stronger than expected room revenues, while robust banquet and catering spend drove incremental growth in out-of-room spending at our hotels…expenses rose by only 1.6% during the quarter and 1.4% year-to-date. Despite the ongoing political and economic environment, our team has skillfully navigated demand channels, enabling DiamondRock (DRH) to outperform industry RevPAR trends…In July, we successfully refinanced and expanded our senior unsecured credit facility to $1.5B and extended our earliest maturity to 2028. We also repaid two mortgage loans during the quarter, eliminating all secured debt. All our debt is now fully prepayable without penalty. During Q3, we capitalized on the compelling total return potential of our shares by repurchasing 1.5 million common shares. Our conservative balance sheet and growing free cash flow per share provide significant optionality with respect to capital allocation decisions made for the benefit of our shareholders.”