Jeff Donnelly, CEO of DiamondRock Hospitality Company (NYSE: DRH), sat down for a video interview during Nareit’s REITworld: 2024 Annual Conference in Las Vegas on Nov. 18-21. He shared his strategic outlook for 2025, emphasizing profitability and capital efficiency.
"Our priorities in 2025 are really going to be around cash flow per share growth," Donnelly said, highlighting a focus on accretive asset recycling and maximizing returns from capital expenditures.
Donnelly described the current hospitality industry fundamentals as strong, despite a slowdown in 2024. He expressed optimism about DiamondRock’s positioning, noting limited new hotel supply in key markets over the next three years.
"With a very favorable backdrop on that side and an improving demographic outlook for hotels...I think it's going to be a good driver for us over the next few years," he said.
Regarding capital markets, Donnelly reported an improving environment, enabling the company to explore new transactions confidently. He predicted increased activity within six to 12 months, fueled by ample liquidity and balance sheet flexibility. DiamondRock aims to leverage this momentum through targeted acquisitions and capital recycling initiatives, he added.