DiamondRock Hospitality Declares $0.09 Quarterly Dividend, Down 25% From Prior Period
DiamondRock Hospitality Co, a lodging-focused REIT, declared a regular quarterly cash dividend of $0.09 per share, representing a decrease from its previous $0.12 payout. The company expects to maintain the $0.09 quarterly rate throughout 2026.
DiamondRock Hospitality Co (NYSE: DRH), a lodging-focused real estate investment trust, declared a regular quarterly cash dividend of $0.09 per share on February 26, 2026. The dividend will be paid on April 14, 2026 to shareholders of record as of March 31, 2026. Read more dividend announcements.
The new quarterly rate represents a 25% reduction from the company's fourth quarter 2025 payout of $0.12 per share. That prior distribution included a regular quarterly dividend of $0.08 per share plus a stub dividend of $0.04 per share, paid in January 2026.
DiamondRock said it expects to declare regular quarterly dividends of $0.09 per common share throughout 2026 and, depending on its 2026 operating income, a potential stub dividend in the fourth quarter of 2026.
| Dividend Details | |
|---|---|
| Amount | $0.09 per share |
| Record Date | March 31, 2026 |
| Payment Date | April 14, 2026 |
| Previous Dividend | $0.12 per share (Q4 2025) |
Balance Sheet and Capital Allocation
As of December 31, 2025, DiamondRock had total debt outstanding of $1.1 billion, consisting of three unsecured term loans bearing a weighted average interest rate of 5.0%. The company had $400 million available under its undrawn revolving credit facility and approximately $68.1 million of unrestricted cash on hand.
The company has no debt maturities until January 2028, with its portfolio fully unencumbered of secured debt and its debt fully prepayable without penalty.
During 2025, DiamondRock repurchased 4.8 million shares of its common stock at an average price of $7.72 for a total purchase price of $37.1 million. The company currently has $137.0 million of remaining capacity under its $200.0 million share repurchase program.
Preferred Stock Redemption
On December 31, 2025, DiamondRock redeemed all 4.76 million outstanding shares of its 8.250% Series A Cumulative Redeemable Preferred Stock. The company utilized approximately $121.5 million cash on hand to fund the redemption price of $25.00 per share, plus accrued and unpaid dividends. DiamondRock no longer has preferred stock outstanding.
2026 Guidance
The company projected full year 2026 adjusted EBITDA in a range of $287 million to $302 million, compared to $297.6 million in 2025. Adjusted funds from operations are expected between $227 million and $242 million, or $1.09 to $1.16 per share, compared to $227.0 million or $1.08 per share in 2025.
DiamondRock forecast comparable revenue per available room growth of 1.0% to 3.0% in 2026 from a 2025 base of $207.38. The guidance assumes full year cash corporate expenses of approximately $25.0 million to $26.0 million and cash interest expense of approximately $57.5 million to $58.5 million.