Recurring maintenance CapEx, which reached $30.5M in 2024Q4, continues to absorb a significant portion of operating cash flow and contributes to the volatility in AFFO, which dipped to negative $12.7M in the same period.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 |
|---|
| Cash from Operations | 237.98M | 243.65M | 224.41M | 237.56M | 206.24M | -2.31M | -83.69M | 193.29M | 219.3M | 204.53M | 215.58M | 227.56M | 179.83M | 143.73M | 93.14M | 104.23M | 85.07M | 80.54M | 129.5M | 148.7M | 92.8M | 19.83M | -825.55K |
| Operating CF Growth % | 21.87% | 8.57% | -5.54% | 15.19% | 9039.71% | 97.24% | -143.3% | -11.86% | 7.22% | -5.13% | -5.26% | 26.54% | 25.11% | 54.32% | -10.64% | 22.52% | 5.63% | -37.81% | -12.91% | 60.23% | 368.07% | 2501.54% | - |
| Operating CF / Revenue % | 21.18% | 21.74% | 19.86% | 22.1% | 20.59% | -0.41% | -27.94% | 20.6% | 25.39% | 23.51% | 24.05% | 24.44% | 20.6% | 17.97% | 12.42% | 16.33% | 13.63% | 13.99% | 18.68% | 20.92% | 18.87% | 8.64% | -11.67% |
| Net Income | 104.04M | 101.94M | 48.25M | 86.64M | 109.7M | -195.41M | -396.03M | 184.21M | 87.8M | 91.88M | 114.8M | 85.63M | 163.38M | 49.06M | -16.59M | -7.68M | -9.17M | -11.09M | 52.93M | 68.31M | 35.21M | -7.34M | -2.12M |
| Depreciation & Amortization | 113.75M | 113.11M | 113.59M | 111.3M | 108.85M | 102.96M | 114.72M | 118.34M | 104.74M | 99.19M | 97.51M | 101.22M | 99.75M | 105.75M | 101.59M | 99.31M | 88.67M | 82.87M | 76.04M | 73.28M | 51.57M | 28.52M | 1.09M |
| Stock-Based Compensation | 7.83M | 7.42M | 12.02M | 8.77M | 7.79M | 8.74M | 7.22M | 6.38M | 5.57M | 6.2M | 5.32M | 5.72M | 5.32M | 5.22M | 4.53M | 4.5M | 3.97M | 6.94M | 0 | 0 | 3.04M | 6.31T | 0 |
| Other Non-Cash Items | -10.71M | 13.9M | 41.8M | 10.94M | 7.21M | 143.5M | 191.53M | -130.77M | 4.63M | 764K | -7.49M | 12.16M | -81.36M | -18.63M | 41.56M | 5.93M | 2.99M | 8.91M | 14.04M | 12.91M | 5.62M | -6.31T | -138.47K |
| Working Capital Changes | 25.42M | 10.14M | 9.21M | 20.89M | -26.53M | -62.58M | 25.41M | -5.89M | 14.97M | -1.2M | -4.96M | 12.53M | -12.42M | 2.67M | -31.45M | 608K | -3.43M | 14.47M | -3.38M | -4.97M | -4.72M | -12.67M | 337.49K |
| Cash from Investing | -76.81M | 7.46M | -112.12M | -120.85M | -248.6M | -62.2M | -78.97M | -65.73M | -344.31M | -178.61M | 85.65M | -203.64M | -105.57M | -42.01M | -369.11M | -456.14M | -370.52M | -28.03M | -56.67M | -351.29M | -561.77M | -619.88M | -294.91M |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | 0 | -226.63M | 0 | 0 | -259.88M | -93.8M | 0 | -150.4M | -300.24M | -5M | -446.61M | -385.47M | 0 | 0 | 0 | -331.32M | 0 | -611.6M | -279.46M |
| Purchase of Investments | 0 | 0 | 0 | 0 | -181.94M | 0 | 0 | 0 | -259.88M | -94.56M | 0 | -150.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sale of Investments | 89.03M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5.46M | 188.51M | 6.71M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -89.02M | 89.02M | -30.53M | -34.53M | 182.94M | 391.06M | -77.39M | 133.53M | 30.74M | 15.5M | 188.51M | 9.71M | 257.24M | 70.3M | 126.76M | -15.92M | -72.99M | -3.34M | 8.45M | 36.45M | 3.22M | 9.74M | -15.45M |
| Cash from Financing | -235.12M | -276.68M | -150.67M | -56.73M | 74.03M | 5.17M | 117.71M | -39.37M | -7.17M | -85.44M | -271.72M | 45.3M | -74.48M | 33.23M | 259.3M | 294M | 192.27M | 111.04M | -88.78M | 212.68M | 479.23M | 532.5M | 372.72M |
| Dividends Paid | -57.11M | -108.13M | -35.42M | -41.73M | -16.24M | -9.94M | -28.86M | -102.05M | -102.71M | -100.54M | -100.77M | -96.11M | -77.1M | -65.69M | -56.01M | -40.37M | -4.32M | -80K | -93.05M | -82.33M | -43.7M | -10.72M | 0 |
| Common Dividends | -49.74M | -98.31M | -25.6M | -31.91M | -6.42M | -119K | -25.56M | -102.05M | -102.71M | -100.54M | -100.77M | -96.11M | -77.1M | -65.69M | -56.01M | -40.37M | -4.32M | -80K | -93.05M | -82.33M | -43.7M | -10.72M | 0 |
| Debt Issuance (Net) | 0 | 1000K | -1000K | -1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 1000K | -1000K | 1000K | -1000K | 1000K | 1000K | 1000K | -1000K | -1000K | 1000K | -1000K | 1000K | 1000K | 1000K |
| Share Repurchases | -145.16M | -156.11M | -32.87M | -5.46M | -13.12M | -1.48M | -11.25M | -43.31M | -33.11M | -537K | -7.2M | -2.73M | -2.42M | -1.95M | -2.97M | -3.85M | -3.96M | -1.72M | -49.43M | -3.1M | -3.08M | 0 | 0 |
| Other Financing | -158.16M | -11.57M | 0 | 0 | -13.85M | -1.22M | -1.61M | -4.8M | -412K | -1.58M | -2.77M | -3.19M | 59.73M | -1.1M | -7.85M | -2.46M | -3.24M | 0 | -123K | -3.21M | -3.15M | -6.2M | -2.49M |
| Net Change in Cash | -73.94M | -25.57M | -38.38M | 59.99M | 31.67M | -59.34M | -44.95M | 88.19M | -132.18M | -59.53M | 29.51M | 69.22M | -219K | 134.96M | -16.67M | -57.91M | -93.18M | 163.55M | -15.94M | 10.08M | 10.26M | -67.55M | 372.72M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 295.73M |
| Cash at Beginning | 103.22M | 128.79M | 167.17M | 107.18M | 75.51M | 134.85M | 179.79M | 91.6M | 223.77M | 243.09M | 213.58M | 144.37M | 144.58M | 9.62M | 26.29M | 84.2M | 177.38M | 13.83M | 29.77M | 19.69M | 9.43M | 76.98M | -295.73M |
| Cash at End | 76.32M | 103.22M | 128.79M | 167.17M | 107.18M | 75.51M | 134.85M | 179.79M | 91.6M | 183.57M | 243.09M | 213.58M | 144.37M | 144.58M | 9.62M | 26.29M | 84.2M | 177.38M | 13.83M | 29.77M | 19.69M | 9.43M | 76.98M |
| Free Cash Flow | 161.17M | 162.09M | 142.82M | 118.55M | -43.36M | -276.07M | -173.32M | -5.97M | 104.13M | 104.21M | 112.72M | 164.61M | 117.26M | 36.43M | 43.88M | 49.48M | -212.46M | 55.85M | 64.39M | 92.29M | -472.2M | 1.82M | -825.55K |
| FCF Growth % | 57.96% | 13.49% | 20.47% | 373.41% | 84.29% | -59.28% | -2803.22% | -105.73% | -0.08% | -7.55% | -31.52% | 40.38% | 221.91% | -16.98% | -11.32% | 123.29% | -480.44% | -13.26% | -30.23% | 119.54% | -26067.76% | 320.26% | - |
| FCF / Revenue % | 14.34% | 14.47% | 12.64% | 11.03% | -4.33% | -48.68% | -57.87% | -0.64% | 12.06% | 11.98% | 12.57% | 17.68% | 13.43% | 4.56% | 5.85% | 7.75% | -34.03% | 9.7% | 9.29% | 12.98% | -96% | 0.79% | -11.67% |
Cyclical RevPAR sensitivity
As reported in recent financial statements, DiamondRock's AFFO has demonstrated significant quarterly variance, dropping to a negative $12.7M in 2024Q4 before recovering to $22.2M in 2026Q1, which underscores the inherent difficulty in maintaining consistent dividend coverage within a highly seasonal and capital-intensive lodging portfolio.
The wide swings in AFFO suggest that the company's ability to fund distributions is heavily dependent on peak-season performance rather than a steady, predictable cash stream. Investors should monitor the dividend payout ratio closely, as the 2025Q1 spike to 1.22 indicates that recurring capital requirements can quickly overwhelm available cash during softer demand periods.
Based on the provided quarterly data, DiamondRock consistently allocates between $15.7M and $30.5M per quarter toward property-level capital expenditures, a recurring burden that frequently absorbs a substantial portion of operating cash flow and limits the net cash available for shareholder returns or strategic balance sheet deleveraging.
The persistent level of maintenance spending reflects the necessity of keeping premium lifestyle assets competitive in a crowded market. This high capital intensity suggests that the company's 'true' free cash flow is significantly lower than headline FFO, necessitating a cautious approach when evaluating the sustainability of long-term dividend growth.
According to the company's reported figures, the ratio of FFO to Net Income has fluctuated wildly, reaching an extreme of -6.74 in 2024Q4, which highlights how non-cash depreciation and amortization charges significantly distort the GAAP bottom line and obscure the actual cash-generating capacity of the hotel portfolio.
The disconnect between GAAP net income and FFO is a hallmark of the lodging REIT sector, yet the magnitude of these variances in DiamondRock's case warrants further investigation into the underlying asset depreciation schedules. Analysts should prioritize FFO and AFFO as the primary metrics for valuation, as GAAP earnings appear largely decoupled from the operational reality of the business.
As evidenced by the quarterly cash flow statements, the conversion of operating cash flow into FFO remains inconsistent, with OCF frequently exceeding FFO during periods of high seasonal activity, suggesting that working capital fluctuations play a larger role in short-term liquidity than the headline FFO metric implies.
The variability in the OCF-to-FFO relationship may indicate that timing differences in accounts payable and receivable are creating temporary liquidity noise. Investors should monitor whether this conversion quality stabilizes, as a persistent gap may suggest that the company is relying on working capital management to bridge the gap between operational performance and cash distributions.
Quick answers to the most common questions about buying DRH stock.
DiamondRock Hospitality Company (DRH) generated $243.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
DiamondRock Hospitality Company (DRH) generated $162.1M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
DiamondRock Hospitality Company (DRH) spent $81.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, DiamondRock Hospitality Company (DRH) returned $108.1M to shareholders via cash dividends and spent $156.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.