DiamondRock Hospitality (NYSE: DRH) Announces Redemption of Preferred Stock by Year-End 2025

DiamondRock Hospitality Prepares for Preferred Stock Redemption

DiamondRock Hospitality Company (NYSE: DRH) announces its decision to redeem all outstanding shares of its 8.250% Series A Cumulative Redeemable Preferred Stock on December 31, 2025. This strategic move involves the allocation of approximately $121.5 million in cash to complete the redemption at a price of $25.00 per share, in addition to any accrued and unpaid dividends. The redemption signifies a noteworthy shift in the company’s capital structure, as it aims to streamline its financial obligations and enhance its equity position. This action reflects DiamondRock's commitment to optimizing its balance sheet as it navigates the evolving landscape of the hospitality industry.

In conjunction with the redemption, DiamondRock's Board has declared a quarterly dividend of $0.515625 per share, which will be payable on the same day as the redemption to shareholders of record as of December 19, 2025. This dividend announcement underscores the company’s ongoing efforts to maintain shareholder value while managing its financial commitments. As the hospitality sector continues to recover and adapt post-pandemic, DiamondRock's proactive measures in handling its preferred stock highlight its focus on long-term sustainability and shareholder returns.

Following the redemption date, the Series A Preferred Stock will be eliminated from the company’s portfolio, ceasing any further accrual of dividends on these shares. This significant development indicates a shift in DiamondRock’s financial strategy as it seeks to enhance liquidity and provide more flexibility in its investment decisions. As a self-advised real estate investment trust (REIT), DiamondRock operates a diverse portfolio of 36 premium hotels and resorts, comprising approximately 9,600 rooms in key leisure destinations and gateway markets. With properties that encompass both major global brands and independent boutique hotels, DiamondRock is well-positioned to capitalize on the resurgence of travel and tourism.

Broadridge Corporate Issuer Solutions, LLC has been appointed as the redemption agent for this process, and stakeholders can direct inquiries to 1 (877) 830-4932 for further information. The company also shares forward-looking statements regarding its potential performance, acknowledging the inherent risks and uncertainties associated with economic fluctuations and the ongoing impacts of health crises on the hospitality sector.