Diamondrock Hospitality Company (DRH) will suspend its quarterly dividend. The lodging REIT last raised its quarterly dividend by 22.0 percent to $0.125 per share in 2015.

The lodging-focused real estate investment trust that owns a portfolio of 31 premium hotels in the United States provided an update today on the impact of COVID-19 on its operations and announced the proactive steps management is taking to mitigate the financial impact. The suspension of the dividend could preserve up to $100 million of capital according to DiamondRock.

In the company´s press release Mark W. Brugger, President and Chief Executive Officer of the Company stated, ""It is our hope that our communities can take the difficult steps necessary to quickly and dramatically slow the spread of COVID-19. If our communities respond appropriately, the downturn in travel, while severe, should be comparatively short. While the U.S. travel industry is facing great uncertainty, we believe DiamondRock has the ability to withstand the current slowdown because of its strong balance sheet and liquidity position. We are taking all appropriate steps to preserve capital until we have visibility on the depth and duration of the pause in demand improves. Accordingly, we have drawn our credit facility and now have approximately $380 million of cash on our balance sheet. In addition, the Board believes the most conservative action is to suspend the quarterly dividend and to pay a dividend, if needed, at the end of the year equivalent to 100% of our taxable income.  I have challenged our team to maximize our financial flexibility. New procedures are being instituted to reduce risk and protect the safety of our guests and team members. We are working closely with our operators to identify fresh approaches to reduce operating costs."

DiamondRock Hospitality Company is a lodging-focused real estate investment trust (REIT). The company owns a portfolio of premium hotels and resorts located in different markets in North America and the U.S. Virgin Islands. The company's primary business is to acquire, own, asset manage and renovate premium hotel properties in the United States with a portfolio concentrated in key gateway cities and destination resort locations. Each of the hotels is managed by a third party—either an independent operator or a brand operator, such as Marriott International, Inc. DiamondRock Hospitality commenced operations in July 2004 and became a public reporting company in May 2005.