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DiamondRock Hospitality raises 2026 guidance after strong Q2 with 25.7% AFFO growth and dividend hike

Company Fundamentals
17 Sep 2026, 13:30 WIB
Seeking Alpha
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Bullish
DiamondRock Hospitality raises 2026 guidance after strong Q2 with 25.7% AFFO growth and dividend hike

DiamondRock Hospitality Company reported strong Q2 2026 results, including a 7% increase in revenue per available room (RevPAR) and a 25.7% rise in adjusted funds from operations (AFFO) to $0.44 per share. The company expanded its EBITDA margin and improved its balance sheet with a net debt to EBITDA ratio of 3.1x, reduced floating-rate debt exposure, and ample liquidity. These factors supported a 22% dividend increase and led to raised guidance across all 2026 financial metrics. Despite a recent 20% stock rally, DiamondRock still trades below peer valuations, with positive Q3 trends suggesting further upside potential. The company maintains a Buy rating with a new price target of $15 per share.

DiamondRock Hospitality Company is the subject of this update. For readers following the Real Estate sector, here is Pluang's market snapshot as of Sep 17, 2026 17:11 WIB: Of 22 priced US Real Estate stocks, 14 rose and 4 fell today. Notable movers include AIV at USD 2.27 with 0% Sell / 100% Buy order activity, PLD at USD 134.35 with 0% Sell / 100% Buy, and O at USD 57.39 with 45% Sell / 55% Buy.

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