DiamondRock Hospitality Co., a lodging-focused real estate investment trust, reported fourth-quarter revenue of $206.6 million, missing Wall Street expectations of $212.3 million.

The Bethesda-based REIT posted funds from operations of $48.4 million, or 24 cents per share, in the period, beating analysts expectations of 23 cents per share.

Funds from operations is a key measure in the REIT industry that takes net income and adds back items such as amortization and depreciation.

The company reported fourth quarter net income of $23.9 million, or 12 cents per share, also surpassing analysts expectations by 1 cent per share.

“In 2016 DiamondRock implemented rigorous cost controls, resulting in zero growth in total hotel expenses, a record for the company,” said Mark W. Brugger, chief executive officer of DiamondRock Hospitality. “The company also executed on its strategic priority to create $450 million of investment capacity through asset sales and financings in 2016, which positions DiamondRock to be opportunistic headed into 2017.”

For the year, DiamondRock Hospitality reported funds from operations of $206.3 million, or $1.02 per share. Revenue was reported as $896.6 million.

The company owns a portfolio of 26 hotels and resorts throughout North America and the U.S. Virgin Islands that consists of over 10,925 guest rooms. Its primary business is to acquire, own, asset manage and renovate full-service hotel properties in gateway cities and destination resort locations.

DiamondRock Hospitality expects full-year funds of operations in the range of 92 cents to 97 cents per share.

The company’s shares are trading Wednesday afternoon at $11.36, down 12 cents or 1.09 percent.

The Securities and Exchange Commission filing can be found here.