DiamondRock reports Q2 adjusted FFO 34c, consensus 32c

Reports Q2 revenue $309.3M, consensus $301.77M. “Q2 operating results surpassed our expectations. Our strategy to focus on building a larger base of group demand drove strong room revenues and significantly stronger food and beverage revenues, particularly at our larger urban properties. Group pace in the second half of the year is strong, but we remain vigilant given the uncertain economic and election backdrop. Due to the strong second quarter performance and robust expense controls, we feel comfortable raising the midpoint of our full-year earnings guidance to a range of $0.95 to $1.00 for Adjusted FFO per share and $278M-$290M for Adjusted EBITDA based upon a full-year 2024 RevPAR outlook of 1.5% to 3%…we are reducing the scope of the previously announced Bourbon Orleans renovation by nearly 40%. We expect we can deliver an attractive room product with a more reliable return profile without the incremental capital cost and operating expense of adding food and beverage outlets; nevertheless we have preserved this option for the future. We are also keenly focused on recycling capital from non-core properties and proactively working to recycle those potential proceeds into more attractive investments such as share repurchases and new on-strategy investments.”