DIAMONDROCK HOSPITALITY DECLARES FOURTH QUARTER DIVIDEND
Rhea-AI Summary
DiamondRock Hospitality (Nasdaq: DRH) declared a fourth-quarter common dividend of $0.12 per share, payable January 14, 2026, to holders of record as of December 31, 2025. The Q4 payout includes the regular quarterly dividend of $0.08 plus a $0.04 stub dividend.
Common dividends for 2025 total $0.36 per share, a 12.5% increase versus 2024. The company expects to declare regular quarterly dividends of $0.09 per share in 2026 and said a fourth-quarter 2026 stub dividend will depend on 2026 operating income.
Positive
- 2025 dividends total $0.36 per share (+12.5% YoY)
- Q4 2025 dividend of $0.12 per share payable Jan 14, 2026
- Company signals higher regular dividend of $0.09 per quarter in 2026
Negative
- Fourth-quarter stub dividend is contingent on 2026 operating income
- Q4 payout includes a one-time $0.04 stub, not recurring certainty
News Market Reaction
On the day this news was published, DRH declined 0.34%, reflecting a mild negative market reaction. This price movement removed approximately $6M from the company's valuation, bringing the market cap to $1.82B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Hotel REIT peers showed mixed moves: XHR +3.05%, AHT +6.78%, RLJ +0.66%, SHO +0.44%, while PEB -0.62%. DRH’s +2.16% gain appears more stock-specific than a broad sector rotation.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 03 | Dividend declaration | Positive | -0.3% | Announced Q4 2025 dividend totaling $0.12 with 2025 payouts up 12.5%. |
| Nov 20 | Preferred redemption | Positive | -2.2% | Redeemed 4,760,000 shares of 8.250% Series A preferred using cash. |
| Nov 13 | Exchange transfer | Positive | -1.4% | Voluntary transfer of common stock listing from NYSE to Nasdaq. |
| Nov 06 | Earnings update | Positive | +0.4% | Reported Q3 2025 results with higher Adjusted FFO/share and raised guidance. |
| Nov 04 | Credit facility | Positive | +0.5% | Amended credit facility to $1.5B and pushed out debt maturities to 2028. |
Recent positive corporate and balance-sheet news often saw muted or negative next-day reactions, with only some operational updates aligning positively with price moves.
Over the last few months, DiamondRock has focused on balance-sheet strength, capital allocation, and exchange listing changes. Key steps included upsizing its credit facility to $1.5B, repaying mortgages to eliminate secured debt, and planning redemption of 8.250% preferred shares. The company also reported Q3 2025 results with improved Adjusted FFO and raised 2025 guidance. Today’s dividend announcement, lifting 2025 common payouts to $0.36 per share (a 12.5% increase over 2024), fits this theme of returning capital while maintaining financial flexibility.
Market Pulse Summary
This announcement highlighted a meaningful dividend step-up, with 2025 common dividends totaling $0.36 per share, a 12.5% increase over 2024’s $0.32. The board also signaled plans for a higher regular quarterly dividend of $0.09 per share in 2026 and the possibility of a stub dividend based on 2026 operating income. Investors may monitor future earnings reports and capital allocation moves to gauge how sustainable this payout trajectory remains.
Key Terms
operating income financial
AI-generated analysis. Not financial advice.
Common Dividends for 2025 Total
The fourth quarter dividend, together with the regular dividends declared for the first three quarters of 2025, total
DiamondRock expects to declare regular quarterly dividends of
About the Company
DiamondRock Hospitality Company 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
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SOURCE DiamondRock Hospitality Company
FAQ
What dividend did DiamondRock Hospitality (DRH) declare for Q4 2025?
When is the record date and payment date for DRH's Q4 2025 dividend?
How much were total common dividends for DiamondRock in 2025 and how does that compare to 2024?
What dividend guidance did DiamondRock give for 2026 (DRH)?
What is the stub dividend included in DRH's Q4 2025 payout?
Will the 2026 stub dividend for DiamondRock be guaranteed?
