UPDATE 2-DiamondRock FFO tops Street, shrs fall on RevPAR
* Q3 adj FFO $0.19 vs est $0.17
* RevPAR down 17 pct at $107.5
* Shares down about 4.5 pct
(Adds analyst comments, updates share movement)
Oct 20 (Reuters) - Diamondrock Hospitality Co (DRH.N: Cotización), which acquires and invests in hotel properties, posted third-quarter funds from operations that beat market expectations, but its shares fell due to continued declines in occupancy rates and revenue per room.
Revenue per available room (RevPAR), a standard gauge of health in the hotel industry, decreased 17 percent to $107.50 from $129.33 during the quarter.
Janney Montgomery Scott analyst Daniel Donlan, however, said DiamondRock reported the lowest hotel-level decline in RevPAR and EBITDA margin from among the hotel REITS that have reported so far in the third quarter of 2009.
Last week, Host Hotels & Resorts (HST.N: Cotización) reported a 21.3 percent drop in its RevPAR for the third quarter.
Donlan said he does not expect RevPAR for the industry to turn positive before the second half of 2010, and added that he does not expect DiamondRock's operating margin to turn positive until the fourth quarter of next year. Continuación...