EX-99.1 2 exhibit9915126.htm EX-99.1 Document

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COMPANY CONTACTS

Briony Quinn
Chief Financial Officer
(240) 744-1196

Dori Kesten
Capital Markets
(617) 835-8366

FOR IMMEDIATE RELEASE

DIAMONDROCK HOSPITALITY COMPANY ANNOUNCES SALE OF THE COURTYARD BY MARRIOTT NEW YORK MANHATTAN/FIFTH AVENUE

BETHESDA, Maryland, May 4, 2026 – DiamondRock Hospitality Company (the “Company”) announced today the sale of its leasehold interest in the 189-room Courtyard by Marriott New York Manhattan/Fifth Avenue (the “Hotel”) for $33.0 million. The sales price represents a 6.3x multiple on 2025 Hotel Adjusted EBITDA and a 13.3% capitalization rate on 2025 Hotel Net Operating Income. Inclusive of $12 million of capital expenditures required to be spent in the next 12 months, a contractual increase in the ground lease payment, and higher labor costs over the next several years, the Company estimates the stabilized capitalization rate on the sale to be approximately 7.8%, or 6.5% on a fee simple basis.

“From 2019 to 2025, the Hotel’s Net Operating Income more than doubled, reflecting the value created by our asset management team and operating partners. When evaluating the Hotel’s upcoming capital expenditure needs and structural expense headwinds, the expected returns did not meet our investment thresholds. This transaction reflects our continued commitment to disciplined capital allocation and growing free cash flow per share for the benefit of our shareholders,” said Jeffrey J. Donnelly, Chief Executive Officer of DiamondRock Hospitality Company.

The Company is adjusting its guidance for full year 2026, provided on April 30, 2026, to account for the sale of the Hotel as follows:

MetricPrevious 2026 GuidanceAdjustment for Hotel SaleRevised 2026 Guidance
Comparable RevPAR Growth1.5% to 3.5%—%1.5% to 3.5%
Comparable Total RevPAR Growth1.75% to 3.75%—%1.75% to 3.75%
Adjusted EBITDA (in millions)$296 to $308($5.9)$290.2 to $302.2
Adjusted FFO (in millions)$233.5 to $245.5($5.1)$228.4 to $240.4
Adjusted FFO per share$1.12 to $1.18($0.025)$1.10 to $1.16
ABOUT THE COMPANY
DiamondRock Hospitality Company (Nasdaq: DRH) is a self-advised real estate investment trust (REIT) that owns a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets. The Company currently owns 34 premium quality hotels and resorts with 9,400 rooms. The Company has strategically positioned its portfolio to be operated both under leading global brand families as well as independent boutique hotels in the lifestyle segment. For further information on the Company and its portfolio, please visit DiamondRock Hospitality Company's website at www.drhc.com.



This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as “believe,” “expect,” “intend,” “project,” “anticipate,” “position,” and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to, those risks and uncertainties described from time to time in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K filed on February 27, 2026 and our Quarterly Report on Form 10-Q filed on April 30, 2026. Although we believe the expectations reflected in such forward-looking statements are based upon reasonable assumptions, we can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this Current Report is as of the date of this Current Report, and we undertake no obligation to update any forward-looking statement to conform the statement to actual results or changes in our expectations.



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Reconciliations of Non-GAAP Measures
We use the following non-GAAP financial measures that we believe are useful to investors as key measures of our operating performance: EBITDA, EBITDAre, Adjusted EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted FFO. A detailed explanation of these measures can be found in our Form 10-Q for the quarter ended March 31, 2026 filed on April 30, 2026.
EBITDA, EBITDAre and Adjusted EBITDA
The following table is a reconciliation of our GAAP net income to EBITDA, EBITDAre and Adjusted EBITDA (in thousands):
Full Year 2026 Guidance
Low EndHigh End
Net income$103,200 $116,200 
Interest expense59,000 58,000 
Income tax expense 3,000 4,000 
Real estate related depreciation and amortization110,600 109,600 
EBITDA/EBITDAre
275,800 287,800 
Non-cash lease expense and other amortization5,350 5,350 
Share-based compensation expense9,000 9,000 
Adjusted EBITDA$290,150 $302,150 
FFO and Adjusted FFO
The following table is a reconciliation of our GAAP net income to FFO and Adjusted FFO (in thousands except per share amounts):
Full Year 2026 Guidance
Low EndHigh End
Net income $103,200 $116,200 
Real estate related depreciation and amortization110,600 109,600 
FFO available to common stock and unit holders213,800 225,800 
Non-cash lease expense and other amortization5,600 5,600 
Share-based compensation expense9,000 9,000 
Adjusted FFO available to common stock and unit holders$228,400 $240,400 
Adjusted FFO available to common stock and unit holders, per diluted share$1.10 $1.16 
Diluted weighted average shares and units208,000 208,000 

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Reconciliation of Hotel Net Income to Hotel Net Operating Income
The following table is a reconciliation of the Hotel's GAAP net income to Hotel Adjusted EBITDA and Hotel Net Operating Income. Hotel Net Operating Income represents Hotel Adjusted EBITDA after the deduction of a 4% capital reserve (in millions).
Year Ended December 31, 2025
(unaudited)
Hotel Net Income$3.1 
Cash interest expense for ground lease1.1 
Non-cash interest expense for ground lease0.8 
Depreciation and amortization1.4 
Hotel Adjusted EBITDA6.4 
Cash interest expense for ground lease(1)
(1.1)
Hotel Adjusted EBITDA (including ground lease)5.3 
Capital reserve(0.9)
Hotel Net Operating Income$4.4 
(1) The Hotel's ground lease is accounted for as a finance lease for GAAP purposes, resulting in the lease expense being recorded as interest expense in our consolidated statement of operations. In order to reflect Hotel Adjusted EBITDA on a basis comparable to other ground leased hotels, the Company is presenting Hotel Adjusted EBITDA inclusive of the cash-based ground lease expense associated with the Hotel.
Selected Quarterly Comparable Operating Information

The following tables are presented to provide investors with selected quarterly comparable operating information for the Company's current portfolio of 34 hotels.

Quarter 1, 2025Quarter 2, 2025Quarter 3, 2025Quarter 4, 2025Full Year 2025
ADR$278.85 $294.88 $279.91 $292.20 $286.57 
Occupancy66.6 %76.3 %75.8 %67.6 %71.6 %
RevPAR$185.70 $255.03 $212.06 $197.57 $205.14 
Total RevPAR$293.07 $350.49 $323.24 $308.81 $318.95 
Revenues (in thousands)$248,093 $299,999 $279,713 $267,228 $1,095,033 
Hotel Adjusted EBITDA (in thousands)$61,153 $93,576 $81,534 $73,829 $310,092 
Hotel Adjusted EBITDA Margin24.65 %31.19 %29.15 %27.63 %28.32 %
Available Rooms846,540 855,946 865,352 865,352 3,433,190 

Quarter 1, 2026
ADR$286.02 
Occupancy66.3 %
RevPAR$189.54 
Total RevPAR$300.46 
Revenues (in thousands)$254,351 
Hotel Adjusted EBITDA (in thousands)$65,878 
Hotel Adjusted EBITDA Margin25.90 %
Available Rooms846,540 


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