DiamondRock Hospitality Company owns premium hotels and resorts in North America. The company operates its hotels under the Hilton, Marriott, and Westin brand names in New York, Los Angeles, Chicago, Boston, and Atlanta; and in destination resort locations, such as the United States Virgin Islands and Colorado. The company was founded in 2004 and is based in Bethesda, Maryland.
On May 13, hotel real estate investment trusts (REITs) Pebblebrook Hotel Trust (NYSE: PEB), DiamondRock Hospitality Trust (NYSE: DRH), and Park Hotels & Resorts (NYSE: PK) all fell 10% or more in the first half of trading. Each of these three hotel REITs had a difficult first quarter, as efforts to contain the spread of COVID-19 had a swift and direct impact on the performance of their properties. In reality, the social distancing and non-essential business closures mandated by the government only impacted a part of the first quarter.
Shares of hotel real estate investment trust (REIT) DiamondRock Hospitality (NYSE: DRH) fell 8.9% Tuesday. DiamondRock's own first-quarter earnings, released after the close on Monday, were obviously more disappointing to investors than expected. DiamondRock's funds from operations -- which for a REIT is the rough equivalent to earnings -- came in at just $0.04 per share in Q1.