DIAMONDROCK HOSPITALITY ANNOUNCES REDEMPTION OF 8.250% SERIES A CUMULATIVE REDEEMABLE PREFERRED STOCK

Rhea-AI Summary

DiamondRock Hospitality (NYSE:DRH) announced it will redeem all 4,760,000 outstanding shares of its 8.250% Series A cumulative redeemable preferred stock on December 31, 2025 (Redemption Date).

The company intends to use approximately $121.5 million of cash on hand to pay the redemption price of $25.00 per share, plus accrued and unpaid dividends through but excluding the Redemption Date. The Board declared a quarterly dividend of $0.515625 per Series A share on November 19, 2025, payable December 31, 2025 to holders of record as of December 19, 2025. Beginning on the Redemption Date the Series A shares will no longer be outstanding and dividends will stop accruing.

Broadridge Corporate Issuer Solutions serves as redemption agent; investor questions may be directed to Broadridge at 1 (877) 830-4932.

Positive

• Redeems all 4,760,000 Series A preferred shares on Dec 31, 2025
• Fixed redemption price of $25.00 per share (total ≈ $121.5M)
• Series A dividends will stop accruing beginning Dec 31, 2025

Negative

• Uses approximately $121.5M of cash on hand to fund the redemption
• Pays a $0.515625 per-share dividend on Dec 31, 2025 (record date Dec 19, 2025) prior to redemption

BETHESDA, Md., Nov. 20, 2025 /PRNewswire/ -- DiamondRock Hospitality Company (the "Company") today announced it will redeem all 4,760,000 outstanding shares of its 8.250% Series A Cumulative Redeemable Preferred Stock ("Series A Preferred Stock") on December 31, 2025 ("Redemption Date"). The Company intends to utilize approximately $121.5 million cash on hand to fund the redemption price of $25.00 per share, plus accrued and unpaid dividends up to, but not including the Redemption Date.

On November 19, 2025, the Company's Board of Directors declared a quarterly dividend of $0.515625 per share on its Series A Preferred Stock. The dividend is payable on December 31, 2025, to shareholders of record as of December 19, 2025.

Beginning on the Redemption Date, the Series A Preferred Stock will no longer be outstanding, and dividends will no longer accrue on such securities. Broadridge Corporate Issuer Solutions, LLC ("Broadridge") is the Company's redemption agent. Broadridge's address is Broadridge Corporate Issuer Solutions, LLC, 51 Mercedes Way, Edgewood, NY 11717. Questions relating to the Notice of Redemption and related materials should be directed to Broadridge at 1 (877) 830-4932.

About the Company

DiamondRock Hospitality Company (NYSE: DRH) is a self-advised real estate investment trust (REIT) that owns a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets. The Company currently owns 36 premium quality hotels and resorts with approximately 9,600 rooms. The Company has strategically positioned its portfolio to be operated both under leading global brand families as well as independent boutique hotels in the lifestyle segment. For further information on the Company and its portfolio, please visit DiamondRock Hospitality Company's website at www.drhc.com.

This press release contains forward-looking statements within the meaning of federal securities laws and regulations. These forward-looking statements are identified by their use of terms and phrases such as "believe," "expect," "intend," "project," "forecast," "plan" and other similar terms and phrases, including references to assumptions and forecasts of future results. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. These risks include, but are not limited to: the adverse impact of any future pandemic, epidemic or outbreak of any highly infectious disease on the U.S., regional and global economies, travel, the hospitality industry, and the financial condition and results of operations of the Company and its hotels; negative developments or volatility in the economy, including, but not limited to elevated inflation and interest rates, job loss or growth trends, the imposition of trade sanctions or tariffs and any potential retaliatory responses thereto, an increase in unemployment or a decrease in corporate earnings and investment; risks associated with the lodging industry overall, including, without limitation, decreases in the frequency of travel, decreases in the demand for, or frequency of, international travel as a result of evolving global trade dynamics or otherwise, and increases in operating costs; relationships with property managers; the ability to compete effectively in areas such as access, location, quality of accommodations and room rate structures; changes in taxes and government regulations which influence or determine wages, prices, construction procedures and costs; and other risk factors contained in the Company's filings with the Securities and Exchange Commission. Although the Company believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. All information in this release is as of the date of this release, and the Company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the Company's expectations.

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SOURCE DiamondRock Hospitality Company

FAQ

What is DiamondRock Hospitality (DRH) redeeming on December 31, 2025?

DRH will redeem all 4,760,000 outstanding shares of its 8.250% Series A preferred stock on Dec 31, 2025.

How much will DiamondRock (DRH) pay to redeem Series A preferred stock?

The redemption price is $25.00 per share, using approximately $121.5 million of cash on hand, plus accrued dividends.

Will Series A dividends still accrue after the DRH redemption date?

No. Beginning on the Dec 31, 2025 Redemption Date, Series A preferred stock will no longer be outstanding and dividends will stop accruing.

What dividend did DRH declare on Series A preferred stock on Nov 19, 2025?

The Board declared a quarterly dividend of $0.515625 per Series A share, payable Dec 31, 2025 to holders of record on Dec 19, 2025.

How will investors get information or materials about the DRH redemption notice?

Broadridge is the redemption agent; questions about the Notice of Redemption should be directed to Broadridge at 1 (877) 830-4932.

When will Series A preferred shares cease to be outstanding for DRH (NYSE:DRH)?

Series A preferred shares will cease to be outstanding on the specified Redemption Date: December 31, 2025.