Diamondrock Hospitality Co

drhc.com

What Do They Do?

Owns hotels and resorts that provide lodging, dining and other guest services to travelers.

How Do They Make Money?

It earns from room stays, dining, banquets and other hotel services, then receives hotel operating results after paying hotel managers and, in some cases, brand fees. Room charges accrue over stays; dining charges are earned when provided, and other services when provided or over their service period.

revenue

Segment	Share	How money arrives
Rooms Recurring	65% FY2022: 68%	Recurring
Food and beverage Sold outright	25% FY2022: 24%	Sold outright
Other	9.8% FY2022: 8.2%

Who Are Their Customers?

Guests and groups book rooms and buy food and other services at the hotels. Independent or brand operators manage the properties; branded hotels use their brands’ reservation systems and sales teams to reach customers.

Do Revenues Turn Into Profits?

Yes. It kept 9 cents of every revenue dollar as net income in FY2025.

Net income, FY2025

9% of revenue

▲ +111% vs FY2024 ($48M, 4%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▲ +4%; vs $305.7M in Q2 FY2025
Net income: ▲ +122%; vs $40.8M in Q2 FY2025

Rooms share of revenue vs 64.8% in Q2 FY2025

May 4, 2026 Sold the leasehold interest in a New York hotel Completed the sale for $33.0 million.

Growing. Revenue grew 98% in 4 years, from $567.1M in FY2021 to $1.1B in FY2025, about 19% a year.

Revenue over time

Rooms Food and beverage Other

$2B$1B$0

FY2021 FY2022 FY2023 FY2024 FY2025

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