DiamondRock Hospitality Company reported its financial results for the third quarter and the nine months ended September 30, 2024, reflecting a mixed performance compared to the previous fiscal period. Total revenues for the third quarter reached $285.1 million, marking a 3.1% increase from $276.5 million in the same period of 2023. For the nine months, revenues rose by 4.9% to $850.8 million from $811.3 million in 2023. The growth in revenue was primarily driven by an increase in room revenue, which accounted for approximately 66% of total revenues, and was bolstered by improved occupancy rates and higher Average Daily Rates (ADR).

Despite the revenue growth, net income for the third quarter decreased to $26.6 million from $27.3 million year-over-year, while net income for the nine months fell to $59.5 million from $75.7 million in 2023. This decline in profitability was attributed to increased operating expenses, which rose to $242.2 million for the third quarter, up from $233.8 million in the prior year, and $744.4 million for the nine months, compared to $688.3 million in 2023. Notably, corporate expenses surged due to $20.4 million in severance costs related to leadership changes.

The company’s total liabilities decreased to $1.5 billion as of September 30, 2024, from $1.6 billion at the end of 2023, while total stockholders’ equity increased slightly to $1.6 billion. DiamondRock's debt, net of unamortized debt issuance costs, also declined to $1.1 billion from $1.2 billion, with a weighted average interest rate of 5.60%. The company has maintained a conservative capital structure, with 33 out of 36 hotels unencumbered by mortgage debt.

Strategically, DiamondRock has focused on enhancing its portfolio, which includes 36 hotels with 9,760 guest rooms, primarily in major urban markets and destination resorts. The company executed a significant share repurchase program, repurchasing 3.1 million shares for $26 million as of September 30, 2024, under a new program authorized for up to $200 million. Additionally, the company is investing in capital improvements, with approximately $85 million expected to be spent in 2024, including renovations and rebranding efforts at several properties.

Overall, while DiamondRock experienced revenue growth, challenges in profitability and increased operating costs have impacted its financial performance compared to the previous fiscal period.