DiamondRock Hospitality Plans Redemption of Preferred Stock to Enhance Financial Strategy

DiamondRock Hospitality Moves Forward with Redemption of Preferred Stock

DiamondRock Hospitality Company announces the planned redemption of all 4,760,000 outstanding shares of its 8.250% Series A Cumulative Redeemable Preferred Stock, set for December 31, 2025. The company allocates approximately $121.5 million in cash for this redemption, which will occur at a price of $25.00 per share, inclusive of accrued and unpaid dividends up to the redemption date. This strategic move reflects DiamondRock's commitment to optimizing its capital structure and enhancing shareholder value as it positions itself for future growth.

The decision to redeem the preferred stock aligns with DiamondRock's broader financial strategy and operational focus. By eliminating this layer of preferred equity, the company not only simplifies its capital structure but also reduces future dividend obligations. The Board of Directors has declared a quarterly dividend of $0.515625 per share on November 19, 2025, payable on the same date as the redemption to shareholders on record as of December 19, 2025. Following the redemption, the Series A Preferred Stock will cease to exist, marking a significant step in DiamondRock’s financial management.

In the context of the hospitality industry, this redemption signifies a proactive approach amidst ongoing challenges. DiamondRock’s diversified portfolio of 36 premium hotels and resorts, totaling approximately 9,600 rooms in key leisure and gateway markets, positions the company to capitalize on future recovery trends. As the sector faces uncertainties due to economic volatility and the lingering impacts of infectious diseases, such strategic financial maneuvers are essential for maintaining stability and preparing for potential growth opportunities.

In addition to the redemption news, DiamondRock emphasizes its commitment to quality and innovation within its portfolio, which includes properties operated under leading global brands and independent boutique hotels. Stakeholders are encouraged to visit the company’s website for more information on its operations and strategic vision. Broadridge Corporate Issuer Solutions, LLC has been designated as the redemption agent, providing support for inquiries related to the process.