DIAMONDROCK HOSPITALITY DECLARES DIVIDENDS FOR THIRD QUARTER 2024

Rhea-AI Summary

DiamondRock Hospitality Company (NYSE: DRH) has announced dividend declarations for the third quarter of 2024. The company's Board of Directors has declared a quarterly cash dividend of $0.03 per common share, payable on October 11, 2024, to shareholders of record as of September 30, 2024. Additionally, a quarterly dividend of $0.515625 per share has been declared on the company's 8.250% Series A Cumulative Redeemable Preferred Stock, payable on September 30, 2024, to shareholders of record as of September 20, 2024.

Positive

• Consistent dividend payment for common shareholders
• Maintained dividend for preferred stockholders

Negative

• None.

Insights

Financial Analyst

DiamondRock Hospitality's dividend declaration signals stability in their financial position. The $0.03 per common share dividend, while modest, maintains shareholder returns. The preferred stock dividend of $0.515625 per share reflects a higher yield, typical for this class. This consistent payout suggests the company's cash flow remains steady despite challenges in the hospitality sector.

However, investors should note that the common share dividend yield is relatively low, potentially indicating conservative cash management or growth prospects. The hospitality REIT sector often faces cyclical pressures and this cautious approach might be a strategic move to preserve capital for future opportunities or to navigate potential economic headwinds.

Market Research Analyst

The dividend announcement, while routine, offers insights into DiamondRock's market positioning. Maintaining dividends in the hospitality sector, which has faced significant disruptions, suggests resilience in their business model. However, the unchanged dividend rate may indicate near-term growth expectations.

Investors should consider broader industry trends:

• Post-pandemic recovery patterns in travel and hospitality
• Potential impact of economic uncertainties on discretionary spending
• Shift in travel preferences affecting different property types in DiamondRock's portfolio

These factors could influence future dividend sustainability and growth potential, making it important to monitor occupancy rates and revenue per available room (RevPAR) in upcoming quarters.

BETHESDA, Md., Sept. 4, 2024 /PRNewswire/ -- DiamondRock Hospitality Company (the "Company") (NYSE: DRH) announced that its Board of Directors has declared a quarterly cash dividend of $0.03 per common share to be paid on October 11, 2024 to shareholders of record as of September 30, 2024. 

The Company's Board of Directors also declared a quarterly dividend of $0.515625 per share on its 8.250% Series A Cumulative Redeemable Preferred Stock. The dividend is payable on September 30, 2024 to shareholders of record as of September 20, 2024. 

About the Company

DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of 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 over 9,700 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.

 

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SOURCE DiamondRock Hospitality Company

FAQ

What is the dividend amount for DiamondRock Hospitality's common shares in Q3 2024?

DiamondRock Hospitality (DRH) has declared a quarterly cash dividend of $0.03 per common share for the third quarter of 2024.

When will DiamondRock Hospitality pay its Q3 2024 common share dividend?

The Q3 2024 common share dividend for DiamondRock Hospitality (DRH) will be paid on October 11, 2024, to shareholders of record as of September 30, 2024.

What is the dividend amount for DiamondRock Hospitality's preferred stock in Q3 2024?

DiamondRock Hospitality (DRH) has declared a quarterly dividend of $0.515625 per share on its 8.250% Series A Cumulative Redeemable Preferred Stock for Q3 2024.

When is the record date for DiamondRock Hospitality's preferred stock dividend in Q3 2024?

The record date for DiamondRock Hospitality's (DRH) preferred stock dividend in Q3 2024 is September 20, 2024.