Diamondrock Hospitality's stock experienced a significant pre-market plunge of 12.03% on Monday.

The sharp decline follows the company's announcement of the sale of its leasehold interest in the 189-room Courtyard by Marriott New York Manhattan/Fifth Avenue for $33 million. Concurrently, Diamondrock revised its full-year 2026 financial guidance downward, projecting adjusted EBITDA of $290.2 million to $302.2 million and adjusted funds from operations (FFO) per share of $1.10 to $1.16.

Investors reacted negatively to the lowered financial outlook, which was adjusted following the asset sale. The transaction price implied a multiple of 6.3x on the hotel's 2025 adjusted EBITDA.