Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-32514 DIAMONDROCK HOSPITALITY COMPANY (Exact Name of Registrant as Specified in Its Charter) Maryland 20-1180098 (State of Incorporation) (I.R.S. Employer Ident ...

Financial Data and Key Metrics Changes - For the full year 2025, corporate adjusted EBITDA was $297.6 million, and adjusted FFO per share was $1.08, with free cash flow per share at $0.69, reflecting a 6% increase over 2024 and a 22% increase since 2023 [4] - Full year comparable total RevPAR grew by 1.2%, while comparable hotel adjusted EBITDA increased by 1.1% [4] - In the fourth quarter, corporate adjusted EBITDA was $71.9 million, and adjusted FFO per share was $0.27, with comparable RevPAR declining by 30 basis points [4][5] Business Line Data and Key Metrics Changes - Business transient revenue grew by 2.5%, while group revenue declined by 1% and leisure transient revenue decreased by 2.5% [5] - Out-of-room revenue per occupied room at resorts increased nearly 7%, marking the strongest quarterly growth of the year [6] - Food and beverage revenues increased by 1.4%, with margins expanding by 120 basis points due to a modest increase in labor costs [6][9] Market Data and Key Metrics Changes - The urban portfolio, accounting for 62% of annual EBITDA, delivered 0.3% RevPAR growth in the fourth quarter [7] - The strongest RevPAR growth among urban hotels was achieved by specific properties, including Hotel Emblem San Francisco and Denver Courtyard, which posted double-digit gains [7] - Resort RevPAR declined by 1.8%, while total RevPAR increased by 1.1% [7] Company Strategy and Development Direction - The company aims to drive outsized free cash flow per share growth, with a disciplined capital allocation strategy [18][19] - A five-year capital expenditure program is planned, equating to 7%-9% of total revenues, focusing on stability and appropriate investment levels [20][22] - The company is likely to be a net seller of hotels in 2026, with ongoing discussions about potential property dispositions [27] Management's Comments on Operating Environment and Future Outlook - The company expects 2026 RevPAR growth of 1%-3% and total RevPAR growth to be 25 basis points higher [14] - Management is optimistic about the trajectory of resorts and anticipates benefits from upcoming events like the FIFA World Cup and the 250th anniversary of the United States [29][30] - The affluent consumer segment is expected to continue spending, supporting the company's higher-end portfolio [100] Other Important Information - The company redeemed its Series A redeemable preferred shares, which will generate a $0.03 tailwind to FFO per share in 2026 [10][11] - The company paid a common dividend of $0.08 per share in each quarter of 2025, with expectations to increase it to $0.09 per share in 2026 [12] Q&A Session Summary Question: Thoughts on labor and benefits pace in 2026 - Management expects labor costs to increase around 3% in 2026, influenced by contract renewals in New York [38] Question: Insights on first quarter RevPAR - The first quarter is anticipated to be the toughest, with group pace weighted towards growth in the second and fourth quarters [42] Question: Impact of Westin Seaport franchise expiration - Management is pleased with interest from multiple brands regarding the franchise expiration and is working towards finalizing a deal [46] Question: Out-of-room spend performance - Management is cautiously optimistic about continuing to improve out-of-room spend, with a focus on group booking trends [52] Question: Transaction market outlook - The company is more inclined to be sellers at this time, as shares appear to be a better investment than current acquisition options [66]

DiamondRock Hospitality Company (NYSE:DRH) Q4 2025 Earnings call February 27, 2026 09:00 AM ET Company ParticipantsBriony R. Quinn - EVP and CFOJeff Donnelly - CEOJustin Leonard - President and COOSmedes Rose - DirectorConference Call ParticipantsAustin Wurschmidt - Director and Equity Research AnalystChris Darling - Senior AnalystChris Woronka - Director and Senior Equity Research AnalystCooper Clark - Equity AnalystDuane Pfennigwerth - Senior Managing Director and Equity Research AnalystMichael Bellisario ...

Financial Data and Key Metrics Changes - For the full year 2025, corporate adjusted EBITDA was $297.6 million, and adjusted FFO per share was $1.08, with free cash flow per share at $0.69, reflecting a 6% increase over 2024 and a 22% increase since 2023 [3] - Full year comparable total RevPAR grew by 1.2%, while comparable hotel adjusted EBITDA increased by 1.1% [3] - In Q4 2025, corporate adjusted EBITDA was $71.9 million, and adjusted FFO per share was $0.27, with comparable RevPAR declining by 30 basis points [3][4] Business Line Data and Key Metrics Changes - Business transient revenue grew by 2.5%, while group revenue declined by 1% and leisure transient revenue decreased by 2.5% [4] - Out-of-room revenue per occupied room at resorts increased nearly 7%, marking the strongest quarterly growth of the year [5] - Food and beverage revenues rose by 1.4%, with margins expanding by 120 basis points due to a modest increase in labor costs [5][6] Market Data and Key Metrics Changes - The urban portfolio, accounting for 62% of annual EBITDA, delivered 0.3% RevPAR growth in Q4, with notable performance from specific hotels [6] - Resort RevPAR declined by 1.8%, while total RevPAR increased by 1.1% [6] - The company expects to enter 2026 with $149 million of group room revenue on the books, the same as 2025, which was a peak year [9] Company Strategy and Development Direction - The company aims to drive outsized free cash flow per share growth, with a disciplined capital allocation strategy [17][18] - A five-year capital expenditure program is planned, equating to 7%-9% of total revenues, which is lower than the peer average [19] - The company is likely to be a net seller of hotels in 2026, focusing on transactions that advance its strategy to increase free cash flow per share [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the trajectory of resorts, citing the lowest year-over-year RevPAR decline in Q4 among all quarters [7] - The company anticipates benefiting from favorable year-over-year comparisons following the federal government shutdown and expects improved group business conversion [26] - The higher-end portfolio is expected to continue benefiting from affluent consumer spending patterns, with early signs of strong demand for spring break and upcoming events [27][28] Other Important Information - The company redeemed its Series A redeemable preferred shares, which is expected to generate a $0.03 tailwind to FFO per share in 2026 [9][10] - The company plans to declare quarterly dividends of $0.09 per share in 2026, with potential for a fourth-quarter sub-dividend [11] Q&A Session Summary Question: Thoughts on labor and benefits pace in 2026 - Management expects labor costs to increase around 3% in 2026, influenced by contract renewals in New York [36] Question: Insights on first quarter RevPAR - The first quarter is expected to be the toughest comparison of the year, with group pace weighted towards growth in the second and fourth quarters [39] Question: Impact of Westin Seaport franchise expiration - Management is pleased with interest from multiple brands regarding the Westin Seaport and is working towards finalizing a deal [43] Question: RevPAR lift from World Cup demand - Approximately 20 basis points of RevPAR growth is embedded in the 2026 guidance from World Cup demand, with early signs of rate strength [45] Question: Out-of-room spend performance - Management is cautiously optimistic about continuing to improve out-of-room spend, with a 10% increase in leads and tentatives for group bookings compared to last year [52] Question: CapEx plans for 2026 - Management indicated that CapEx will focus on value engineering and appropriate expenditures for each hotel, with larger successes expected in CapEx [56] Question: State of business transient travel - Management believes affluent consumers will continue to spend, while visibility on lower-level consumer trends is less clear [97]

Core Insights - DiamondRock Hospitality (DRH) reported revenue of $274.53 million for the quarter ended December 2025, reflecting a decrease of 1.6% year-over-year [1] - The company's EPS was $0.27, a significant improvement from -$0.07 in the same quarter last year, indicating a positive trend in earnings [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $274.95 million, resulting in a revenue surprise of -0.15% [1] - The company achieved an EPS surprise of +14.55%, surpassing the consensus estimate of $0.24 [1] Revenue Breakdown - Room revenues were reported at $178.16 million, which was lower than the estimated $179.62 million, marking a year-over-year decline of 2.7% [4] - Other revenues amounted to $27.66 million, exceeding the estimated $26.5 million, and showing a year-over-year increase of 4.4% [4] - Food and beverage revenues reached $68.71 million, slightly above the average estimate of $68.53 million, but represented a year-over-year decrease of 1% [4] Stock Performance - Over the past month, shares of DiamondRock Hospitality have returned +11.2%, outperforming the Zacks S&P 500 composite, which saw a change of +0.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

COMPANY CONTACTS Briony Quinn Chief Financial Officer (240) 744-1196 Dori Kesten Capital Markets (617) 835-8366 DIAMONDROCK HOSPITALITY COMPANY REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS Comparable Total RevPAR Growth, Adjusted EBITDA, and Adjusted FFO Per Share Exceed High End of Guidance BETHESDA, Maryland, Thursday, February 26, 2026 – DiamondRock Hospitality Company (Nasdaq: DRH, the "Company"), a lodging real estate investment trust that owns a portfolio of 35 premium hotels and resorts in the U ...

will be accessible by telephone and through the internet. Interested individuals are requested to register for the call using this [link] to obtain dial-in and webcast details. Registration details are also available by visiting [https://investor.drhc.com]. A replay of the conference call webcast will be archived and available online.ABOUT THE COMPANYDiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hot ...

DIAMONDROCK HOSPITALITY ANNOUNCES RETIREMENT OF CHAIRMAN WILLIAM W. MCCARTEN [Accessibility Statement] Skip NavigationRetirement Culminates a Distinguished 47 Year Career in HospitalityBETHESDA, Md., Feb. 25, 2026 /PRNewswire/ -- DiamondRock Hospitality Company (Nasdaq: DRH, the "Company") announced that Chairman William W. McCarten will retire from the Company's Board of Directors (the "Board") at the end of his current term, effective at the adjournment of the 2026 Annual Meeting of Shareholders on April ...

Core Viewpoint - DiamondRock Hospitality Company announced the tax treatment of its 2025 distributions to common and Series A preferred stockholders [1] Distribution Summary - Common stockholders will receive distributions of $0.08 per share on March 28, June 30, and September 30, 2025, and $0.12 per share on December 31, 2025 [2] - Series A preferred stockholders will receive distributions of $0.515625 per share on March 20, June 20, September 19, and December 19, 2025 [2] Company Overview - DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that owns a diversified portfolio of hotels, focusing on leisure destinations and major gateway markets [3] - The company currently owns 35 premium quality hotels and resorts, totaling approximately 9,600 rooms [3] - The portfolio includes both globally recognized brand hotels and independent boutique hotels in the lifestyle segment [3]

Core Viewpoint - DiamondRock Hospitality (DRH) has shown strong performance with a recent 52-week high of $9.44 and a year-to-date gain of 3.2%, although this is below the Zacks Finance sector's 19.1% and the REIT and Equity Trust - Other industry's 4.5% [1] Financial Performance - DRH has consistently beaten earnings estimates, reporting EPS of $0.1 against a consensus estimate of $0.25 in its last earnings report [2] - For the current fiscal year, DRH is projected to earn $1.08 per share on revenues of $1.12 billion, with a year-over-year earnings growth of 3.43% [3] Valuation Metrics - DRH trades at 8.6X current fiscal year EPS estimates, below the peer industry average of 11.3X, and has a trailing cash flow multiple of 11.8X compared to the peer average of 11.2X [7] - The stock has a PEG ratio of 4.45, indicating strong value potential for investors [7] Zacks Rank and Style Scores - DRH holds a Zacks Rank of 2 (Buy) due to rising earnings estimates, which is favorable for investors [8] - The stock has a Value Score of A, a Growth Score of D, and a Momentum Score of B, resulting in a combined VGM Score of B [6] Industry Comparison - The REIT and Equity Trust - Other industry is performing well, ranking in the top 42% of all industries, suggesting positive market conditions for DRH and its peers [12] - CTO Realty Growth, a peer, also shows strong performance with a Zacks Rank of 2 (Buy) and has reported earnings that exceeded estimates [10][11]