Diamondrock Hospitality Co (DRH) Reports Q3 2023 Earnings: Net Income at $27.3 Million
Net income for Q3 2023 was $27.3 million, with earnings per diluted share at $0.12.
Comparable total revenues were $277.1 million, a 0.1% increase over 2022 and a 12.0% increase over 2019.
Adjusted EBITDA was $73.2 million, a 4.1% decrease from 2022 but an 8.4% increase over 2019.
The company acquired Chico Hot Springs Resort located in Paradise Valley, Montana for $33.0 million on August 1, 2023.
On November 1, 2023, Diamondrock Hospitality Co (NYSE:DRH) released its earnings report for the third quarter of 2023. The company reported a net income of $27.3 million and earnings per diluted share of $0.12. Comparable total revenues were $277.1 million, marking a 0.1% increase over 2022 and a 12.0% increase over 2019.
Financial Highlights
Other financial highlights for the quarter include a comparable RevPAR of $210.03, a 1.1% decrease from 2022 but a 7.6% increase over 2019. The Comparable Hotel Adjusted EBITDA was $81.1 million, a 6.6% decrease from 2022 but an 8.9% increase over 2019. The Adjusted EBITDA was $73.2 million, a 4.1% decrease from 2022 but an 8.4% increase over 2019. The Adjusted FFO was $54.6 million, and Adjusted FFO per diluted share was $0.26.
Acquisition and Rebranding
Diamondrock Hospitality Co (NYSE:DRH) also announced the acquisition of Chico Hot Springs Resort located in Paradise Valley, Montana for $33.0 million on August 1, 2023. In addition, the company completed the rebranding of the Hilton Boston Downtown/Faneuil Hall to The Dagny, an independent lifestyle boutique hotel, on August 1, 2023.
Company's Commentary
Mark W. Brugger, President and Chief Executive Officer of DiamondRock Hospitality Company, commented on the results,
DiamondRocks results for the third quarter were modestly ahead of our expectations. The team did a great job controlling expenses, which saw significant improvement over the prior quarter. Accomplishments in the third quarter also included the successful completion of the major repositioning of The Dagny in Boston. For the fourth quarter, we expect our RevPAR growth to improve approximately 100 basis points from the third quarter and be essentially flat compared to 2022 driven by improving results from our resort portfolio."
Financial Tables
The company's balance sheet as of September 30, 2023, showed total assets of $3,256,321,000, including property and equipment net worth of $2,765,646,000. Total liabilities stood at $1,605,722,000, with total debt at $1,179,251,000. The company ended the quarter with $611.6 million of liquidity, comprised of $102.7 million of unrestricted corporate cash, $108.9 million of unrestricted cash at its hotels, and full capacity on its $400 million senior unsecured credit facility.
Dividends
The company declared a quarterly cash dividend of $0.03 per common share, which was paid on October 12, 2023, to shareholders of record as of September 29, 2023.
For more detailed financial information, please refer to the full earnings report from Diamondrock Hospitality Co (NYSE:DRH).
Explore the complete 8-K earnings release (here) from Diamondrock Hospitality Co for further details.
This article first appeared on GuruFocus.
