Lodging-focused real estate investment trust DiamondRock Hospitality Co posted lower-than-expected quarterly funds from operations (FFO), hurt mainly by a fall in average daily rate.

The company also said it is in non-monetary default under its Frenchman's Reef Marriott mortgage loan due to its inability to meet certain deadlines to complete capital projects stipulated in the loan agreement.
It is currently in talks with the loan servicers to extend the deadline for completion of projects and for waiver of any penalty interest incurred to date, the company said.
For the latest fourth quarter, adjusted FFO was $22.1 million, or 18 cents a share, compared with $41.5 million or 46 cents a share, a year ago.
Analysts on average had expected adj FFO of 21 cents per share for the quarter, according to Thomson Reuters I/B/E/S.
The company, which saw a 12 percent drop in average daily rate, said RevPar fell 15 percent to $102.5 million.
DiamondRock's same-store revenue per available room, a key industry measure known as RevPAR, fell 15 percent to $120.3 million.
The company said it expects RevPAR to further decline in 2010, primarily as a result of declining average daily rate. DiamondRock said it expects a challenging year ahead as it does not see an improvement in lodging fundamentals.
(Source: Reuters)