DiamondRock Hospitality has reported a net income of $39.13m for the second quarter (Q2) of 2023, a decline of 25.7% from $52.7m a year ago.

For this quarter that ended 30 June 2023, net income attributable to common stockholders declined to $36.51m from $50.06m last year.

Diluted earnings per share available to common stockholders was $0.17 versus $0.23 in the year ago period.

The company’s total revenues for the quarter were $291.24m, up by 3.4% from $281.4m a year earlier.

DiamondRock’s revenue per available room (RevPAR) for reported period was $333.88m as against $331.56m last year.

The company’s adjusted funds from operations totalled $67.3m.

Adjusted earnings before interest, taxes, depreciation and amortisation declined by 6.7% to $85.76m from $91.99m in 2022.

During the quarter, DiamondRock repurchased 262,054 shares of its common stock at an average price of $7.67 per share and a total purchase price of $2m.

DiamondRock Hospitality CEO and president Mark Brugger said: “Our urban portfolio delivered strong total revenue growth of 7.1% with solid performance from group, but rate of improvement in business transient demand appears to be moderating.

“Competition from international destinations and cruise lines led our smaller portfolio of resorts to rebalance to a 'new normal' with total revenues declining 8.3%.

“However, revenues from our resorts remained 33.1% ahead of the comparable period in 2019 as destination resorts remain the biggest winner from an acceleration in secular demand for leisure travel. After quarter end, we completed the major repositioning of The Dagny in Boston, as well as acquiring a very attractive boutique resort in Montana.”