DiamondRock Hospitality Company announced that its Class A Common Stock will move from the New York Stock Exchange to the Nasdaq Global Select Market, with trading on the new exchange beginning on December 1, 2025. The DRH ticker will remain unchanged, and the company’s Series A Cumulative Redeemable Preferred Stock will continue to trade on the NYSE.
The company said the move is intended to leverage Nasdaq’s cost‑effective listing platform, trading advisory services, and enhanced marketing opportunities. By joining Nasdaq, DiamondRock aims to improve liquidity, broaden its investor base, and align itself with a community of technology‑driven companies while maintaining a long‑standing relationship with the NYSE.
DiamondRock’s most recent quarterly results, released in the same week, provide context for the listing change. In the third quarter of 2025 the company reported revenue of $285.38 million, beating the consensus estimate of $277.08 million by $8.30 million, or 3.0 %. The beat was driven by stronger demand in its premium hotel portfolio and a favorable mix of high‑margin resort operations. However, earnings per share fell to $0.10 versus the consensus of $0.1083, a miss of $0.0083 or 7.7 %. Management attributed the EPS shortfall to modest cost inflation in labor and supplies, which offset the revenue upside. Despite the miss, the company raised its 2025 Adjusted EBITDA and Adjusted FFO guidance, signaling confidence in continued cost control and margin resilience.
CEO Jeffrey J. Donnelly said the Nasdaq partnership would “benefit the company and its shareholders through a cost‑effective exchange platform, trading advisory services, and enhanced marketing opportunities.” He also expressed appreciation for the NYSE’s partnership over the past two decades. President of Nasdaq Nelson Griggs welcomed DiamondRock to the Nasdaq family, noting that the REIT’s premium accommodations portfolio would benefit from Nasdaq’s advanced trading technology and corporate services. In a March 2025 shareholder letter, management highlighted a focus on free‑cash‑flow‑per‑share growth and a view that industry headwinds were dissipating, positioning the company for an extended period of asset‑value and profit growth.
The listing transition comes at a time when DiamondRock’s financial health shows both strengths and risks. The REIT’s debt‑to‑equity ratio of 0.76 and current ratio of 0.96 suggest moderate leverage and liquidity, while an Altman Z‑Score of 0.9 places the company in the distress zone. Nevertheless, an EV/EBITDA multiple of 10.56 indicates that the market may still view the company as slightly undervalued relative to peers. The Nasdaq move is expected to reduce listing fees and provide access to advanced trading technology, potentially enhancing trade execution and investor engagement. Investors will likely weigh the benefits of improved liquidity against the company’s underlying financial metrics as they assess DiamondRock’s future prospects.
In summary, DiamondRock’s transfer to Nasdaq is a strategic step aimed at cost savings, broader market exposure, and alignment with a technology‑focused exchange. The move is supported by recent revenue growth and a raised earnings guidance, but the company’s liquidity profile and valuation metrics suggest that investors should monitor its financial performance closely as it continues to navigate the lodging industry’s recovery.
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