Jeff Donnelly, CEO of DiamondRock Hospitality Co. (NYSE: DRH), sat down for a video interview during Nareit’s REITweek: 2025 Investor Conference in New York City on June 2-5.
Donnelly emphasized the REIT's commitment to driving financial performance. “The message that we've been delivering to shareholders has really been focusing on driving our FFO per share and free cash flow per share,” Donnelly said, noting that the hotel sector historically underperformed due to poor capital allocation.
He acknowledged softness in the leisure segment, impacted by inflation and international travel headwinds, but remained optimistic. “Our bookings for 2026 are up in the double digits,” he said, pointing to strong corporate transient demand as a stabilizing factor.
Addressing deal activity, Donnelly explained that hotel transaction volume remains well below pre-pandemic levels, constrained by a disconnect between buyer and seller expectations. While high interest rates present challenges, he sees opportunity ahead. “The key is to be able to be capitalized as we are where we have a sufficient amount of dry powder to really fuel growth in our portfolio,” Donnelly concluded.