Bethesda, Md based DiamondRock Hospitality Company (NYSE: DRH), a lodging real estate investment trust (REIT) reported a net loss of $556,000 for the second quarter ended June 17, 2011 versus a net income of $839,000 in the same period of 2010.
The report was released after market hours.
Total revenue for the quarter was $169.5 Million, up from $151.1 Million in the second quarter of 2010. For the past two quarters ended June 17, 2011, revenue totaled $291.8 Million.
Chief Executive Officer of DiamondRock Hospitality Company, Mark W. Brugger, said, “The second quarter represented the continued successful execution of our strategy and evidenced both strong internal and external growth for DiamondRock. Our operating results reflect strengthening of lodging fundamentals, which should continue to be strong against a comparison to cyclical trough results as well as constrained new hotel supply. Since last year, we have completed or committed $900 million of high-quality investments with more than half of those investments in Midtown New York. We continue to see excellent acquisition opportunities but remain focused on maximizing value from our existing portfolio.”
Brugger continued “We are pleased with our portfolio’s room revenue performance, particularly in light of difficult comparisons and convention calendar challenges in our two largest group markets, Chicago and Boston. Group booking pace in these two key markets is up over 8% for the balance of 2011 and 14% for 2012. Overall margin expansion was strong as our cost containment efforts maintained profits even as group banquet contribution moderated,” stated John Williams, President and Chief Operating Officer of DiamondRock Hospitality Company. “Our $45 million repositioning of Frenchman’s Reef is currently on-time and on-budget, albeit with estimated operating profit displacement increasing $1 million as we temporarily added costs to keep our customers happy during the renovation. The group meeting planner reaction has been better than expected and group pace is up 20% in the fourth quarter of 2011 and 55% for 2012.”
A the end the quarter DiamondRock had $20.9 Million in cash and $1.0 Billion in debt.
DiamondRock Hospitality made the following acquisitions in 2011,
DiamondRock Hospitality owns 26 hotel properties with over 12,000 rooms. The company has a market capitalization of approximately $1.71 Billion. The stock closed at $10.23 Monday, down 2.57% or $0.27 cents.