DiamondRock guides to lower 1Q EBITDA, revenue

DiamondRock Hospitality Co. said it expects first-quarter earnings before income taxes, depreciation and amortization to fall between 30 percent and 38 percent from the same period last year.

The Bethesda, Md., real estate investment trust said Monday earnings before income taxes, depreciation and amortization are expected to be between $17.5 million and $19.5 million for the period ended March 27, down from $28.8 million a year earlier.

Earnings before income taxes, depreciation and amortization were 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 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 nearly 17 percent decline from the first fiscal quarter in 2008.

The comparisons are affected by disruptions from the 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.

Earlier this year, DiamondRock announced it had put 11 of its 20 hotels up for sale, with the intention of selling one or two to bolster its liquidity. The company said Monday in a statement that several potential buyers had toured the hotels and submitted bids, but none were "attractive" compared to its internal valuation. It said the sales process was still under evaluation.

Tuesday, the company announced it had set the price on its planned stock offering in a bid to raise proceeds to pay down debt.

The company's shares fell 1 cent to $5.10 in Tuesday afternoon trading.