DRH DiamondRock Hospitality Co

Overview and Growth

In fiscal 2025, DiamondRock Hospitality Co recorded $1.12B of revenue, net income of $101.43M, and an operating cash inflow of $243.65M. Revenue of $1.12B sets the scale for evaluating how effectively sales translated into profit and cash during the year. The top line contracted 0.8% from $1.13B in fiscal 2024; this top-line contraction left the company with a smaller revenue base. On a per-share basis, diluted EPS was $0.44, which connects the reported earnings outcome with the company’s diluted share count. Diluted EPS increased by 144.4% from $0.18 in fiscal 2024, showing how the earnings change reached shareholders on a per-share basis. Diluted shares averaged 208.26M; this is the reported share base over which the company’s diluted per-share earnings were spread. Compared with 211.24M diluted shares in fiscal 2024, the current 208.26M base was 1.4% lower. At period end, total assets were $3.00B, framing the scale of the company’s operating and financing commitments. Revenue equaled 0.37x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

The bottom-line result was net income of $101.43M, after the operating, financing, tax, and other items recognized for the period. Net margin was 9.1%, meaning that this portion of revenue remained as net income after all recognized expenses. Before income taxes, the company reported $100.71M of earnings, providing a bridge between the operating result and final net income. Measured against revenue, pretax income equaled 9.0%, adding a pre-tax profitability layer between revenue and net income. An income-tax benefit of $1.23M improved the final result relative to pretax income or loss. Relative to positive pretax income, the tax benefit measured 1.2%. The relationship between net income and period-end equity was 7.0%, indicating the profitability achieved on book capital. Net income represented 3.4% of period-end assets, placing the company’s bottom-line result against the total resource base employed. Against $48.05M in fiscal 2024, the current $101.43M bottom line finished above the prior-year result in absolute terms.

Liquidity and Capital Structure

At period end, the $3.00B asset base was financed through $1.55B of liabilities and $1.46B of equity. Cash and equivalents totaled $68.08M, identifying the most liquid reported component available within the broader current-asset balance. Borrowings totaled $1.10B, adding a fixed financing obligation alongside the company’s equity capital. The debt-to-equity relationship was 0.75x, showing how much debt the company carried for each unit of book equity. Relative to total assets, debt measured 36.6%, showing how much of the asset base was matched by borrowing. The equity-to-assets relationship was 48.5%, placing book capital against the total resource base. The liabilities-to-assets relationship was 51.5%, placing reported obligations against the full positive asset balance. Measured against total assets, cash and equivalents represented 2.3%, a balance-sheet composition measure rather than a liquidity forecast. Total assets were 5.3% lower than fiscal 2024 assets of $3.17B, measuring the company’s own balance-sheet change. Book equity was 8.9% lower than fiscal 2024 equity of $1.60B, showing how shareholder capital changed year over year. The reported cash balance changed 16.3% from $81.38M in fiscal 2024, ending lower year over year.

Cash Flow and Earnings Quality

Cash flow from operations was $243.65M, a reported cash inflow that can be compared directly with net income and capital spending. Operating cash flow equaled 2.4x of net income, showing how strongly accounting earnings converted into cash from operations. Compared with $224.41M in fiscal 2024, current operating cash flow of $243.65M was above the prior result.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Sep 24, 2026.