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# DiamondRock Lifts 2026 Outlook Again As Hotel-Level Profit Climbs 12.5% And Dividend Rises 22%
- URL: https://www.bullished.co/diamondrock-lifts-2026-outlook-again-as-hotel-level-profit-climbs-12-5-and-dividend-rises-3d9073ae/
- Published: 2026-11-03T22:51:45.000Z
- Updated: 2026-11-03T22:51:45.000Z
- Description: The hotel REIT raised its full-year Adjusted EBITDA forecast to $322.0 million to $327.0 million and bought a 79-room Delaware resort.
- Author: Matteo Parrino
- Tags: SEC Filings, DRH, Industry: Real Estate

DiamondRock Hospitality, a real estate investment trust that owns 35 premium hotels and resorts in the U.S., raised its 2026 guidance for the second time this year after third-quarter profit at its hotels [outgrew revenue](https://www.sec.gov/Archives/edgar/data/0001298946/000129894626000047/exhibit9913q2026.htm?ref=bullished.co), the company said in an [8-K](https://www.bullished.co/learn/8-k-items-explained/) filed Tuesday. Comparable hotel-level profit rose 12.5% to $91.7 million while comparable revenue grew 6.4%.

## Profit outran revenue in the quarter

Net income attributable to common stockholders was $33.3 million, or $0.16 per diluted share, up 65.7% and 60.0% from the third quarter of 2025\. Adjusted EBITDA, the company's adjusted earnings measure, rose 7.2% to $84.8 million.

Revenue per available room at comparable hotels climbed 6.6% to $226.01\. The comparable hotel-level profit margin widened 166 basis points, or 1.66 percentage points, to 30.81%.

Adjusted FFO, a cash earnings measure for REITs, rose 10.3% to $0.32 per diluted share. CEO Jeffrey J. Donnelly said the quarter exceeded expectations, with "healthy demand and higher rates across both transient and group segments."

## Raised forecast, higher payout

The company now expects 2026 Adjusted EBITDA of $322.0 million to $327.0 million, up from $310.0 million to $320.0 million. Adjusted FFO is forecast at $1.24 to $1.26 per share, from $1.18 to $1.23, and comparable RevPAR growth at 4.75% to 5.25%, from 2.5% to 4.0%. The outlook includes the new acquisition but assumes no further deals, sales or buybacks.

The quarterly dividend rose 22% to $0.11 per share and was paid on October 14\. DiamondRock expects to declare a stub dividend in the fourth quarter, depending on its estimated 2026 taxable income, on top of the regular $0.11.

The company has $299.4 million left under its $300.0 million buyback program, announced April 30\. It bought back about 0.2 million shares for $1.9 million in the first nine months, at an average of $9.79.

## A Delaware resort for $31.0 million

On October 1, DiamondRock bought The Bellmoor Inn & Spa, a 79-room independent resort in Rehoboth Beach, Delaware, for $31.0 million. The price is an 8.6% capitalization rate on hotel net operating income, and the company expects a stabilized yield of about 9.5%. The resort is expected to add about $0.2 million to fourth-quarter Adjusted EBITDA.

The company owns hotels but third-party managers run them. As of September 30, it had $1.1 billion of debt, $400.0 million of undrawn revolver capacity and about $140.0 million of cash. It expects to spend $75.0 million to $80.0 million on hotel improvements in 2026.

The third-quarter earnings call is Wednesday at 10:00 a.m. Eastern.

Donnelly described the plan as a flywheel: grow earnings, generate more free cash flow and reinvest it at attractive returns.

Learn

- [Item 2.02: results of operations →](https://www.bullished.co/learn/8-k-items-explained/#item-202-results-of-operations)  
From 8-K Items Explained: What Every Item Code From 1.01 To 9.01 Tells You, With Examples

### Sources

- [8-K Filing — DiamondRock Hospitality Co (DRH)](https://www.sec.gov/Archives/edgar/data/0001298946/000129894626000047/drh-20261103.htm?ref=bullished.co) — SEC EDGAR
- [Exhibit exhibit9913q2026.htm — DiamondRock Hospitality Co 8-K exhibit](https://www.sec.gov/Archives/edgar/data/0001298946/000129894626000047/exhibit9913q2026.htm?ref=bullished.co) — SEC EDGAR