DiamondRock Hospitality Company to Redeem Preferred Shares, Enhancing Financial Flexibility

DiamondRock Hospitality Company Moves to Redeem Preferred Shares

DiamondRock Hospitality Company announces a significant financial maneuver as it prepares to redeem all 4,760,000 outstanding shares of its 8.250% Series A Cumulative Redeemable Preferred Stock by December 31, 2025. The company plans to utilize approximately $121.5 million in cash to fund this redemption, which will occur at a price of $25.00 per share, along with any accrued and unpaid dividends up to the redemption date. This strategic move is designed to streamline DiamondRock's capital structure and enhance its financial flexibility in the competitive hospitality market.

In conjunction with the redemption announcement, the Board of Directors declares a quarterly dividend of $0.515625 per share, which is payable on the same date as the redemption to shareholders of record as of December 19, 2025. This dual announcement not only reassures investors of the company's commitment to returning value but also positions DiamondRock to transition away from preferred stock obligations that could hinder operational liquidity. Following the redemption date, the Series A Preferred Stock will cease to exist, and no further dividends will accrue, marking a significant shift in the company's equity structure.

DiamondRock Hospitality, a self-advised real estate investment trust (REIT), manages a diverse portfolio comprising 36 premium hotels and resorts, totaling approximately 9,600 rooms in key leisure destinations and major gateway markets. The company operates properties under prestigious global brands as well as independent boutique hotels, which are increasingly popular in the lifestyle segment. This strategic focus on premium hospitality offerings positions DiamondRock to capitalize on current trends and meet evolving consumer preferences in the hotel industry.

In addition to the redemption announcement, the company acknowledges the potential risks and uncertainties that could impact future performance, including economic volatility and the lingering effects of infectious diseases on the hospitality sector. Stakeholders are encouraged to stay informed through the company's official website, where further updates and detailed information are readily available. As DiamondRock navigates these changes, it remains focused on enhancing its portfolio and adapting to the dynamic landscape of the hospitality industry.