DiamondRock Hospitality Company declared a fourth‑quarter dividend of $0.12 per common share, comprising a regular quarterly dividend of $0.08 and a stub dividend of $0.04. The payment will be made on January 14, 2026 to shareholders of record as of December 31, 2025.
The increase represents a 12.5 % rise over the total dividend paid in 2024, which was $0.24 per share, bringing the cumulative 2025 dividend to $0.36 per share. The higher payout reflects the company’s confidence in its cash‑flow generation and its commitment to returning value to investors.
The dividend decision follows a Q3 2025 earnings report in which DiamondRock beat revenue expectations by $0.24 billion, driven by stronger out‑of‑room and food‑and‑beverage performance, while EPS fell short of consensus by $0.04 due to a modest decline in comparable RevPAR and higher operating costs. Management highlighted disciplined cost control and a favorable mix of leisure‑focused properties, which helped offset the revenue shortfall and support the dividend increase.
For 2026, DiamondRock expects to declare a regular quarterly dividend of $0.09 per share, with a potential stub dividend in the fourth quarter contingent on operating income. The guidance aligns with the company’s strategy of expanding its leisure and lifestyle portfolio, which now accounts for more than 60 % of its 36‑property portfolio and is expected to generate higher margins.
Analysts have adjusted price targets upward in early December, with Wells Fargo raising its target to $10.00 and Evercore ISI maintaining an “In‑Line” rating. The mixed analyst sentiment reflects the company’s strong revenue performance but also the EPS miss and ongoing macro‑economic headwinds, underscoring the importance of the dividend increase as a signal of management’s confidence in future cash‑flow generation.
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