Stock Track | Diamondrock Hospitality Plunges 12.03% in Pre-market After Guidance Cut Following Hotel Sale
Stock Track
May 04
Diamondrock Hospitality's stock experienced a significant pre-market plunge of 12.03% on Monday.
The sharp decline follows the company's announcement of the sale of its leasehold interest in the 189-room Courtyard by Marriott New York Manhattan/Fifth Avenue for $33 million. Concurrently, Diamondrock revised its full-year 2026 financial guidance downward, projecting adjusted EBITDA of $290.2 million to $302.2 million and adjusted funds from operations (FFO) per share of $1.10 to $1.16.
Investors reacted negatively to the lowered financial outlook, which was adjusted following the asset sale. The transaction price implied a multiple of 6.3x on the hotel's 2025 adjusted EBITDA.
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