DiamondRock guides to lower 1Q earnings, revenue

Lodging real estate investment trust DiamondRock Hospitality Co. says it expects first-quarter adjusted earnings to fall between 30 percent and 38 percent from the same period last year.

The Bethesda, Md., company said late Monday that earnings before income taxes, depreciation and amortization are expected to be between $17.5 million and $19.5 million for the quarter ended March 27, down from $28.8 million in the year-ago period.

EBITDA was reduced $1.4 million from the impact of non-cash rent and non-cash amortization of contract liabilities for each of the fiscal quarters, the company said.

DiamondRock Hospitality said same-store revenue per available room, a measurement of the performance of its hotels compared with similar previous periods, is expected to be about $98.80, a 17 percent decline from the first fiscal quarter in 2008.

The comparisons are affected by disruptions from renovation of the Chicago Marriott in the first fiscal quarter in 2008, DiamondRock Hospitality said. Excluding the renovation, revenue per available room would increase this year by about 2.4 percent, the company said.

DiamondRock Hospitality said it repaid in the first quarter about $5 million of debt. At the end of the first fiscal quarter, DiamondRock said it had $52 million outstanding in its credit facility.

Shares fell 1 cents to $5.08 in afternoon trading.