DiamondRock Hospitality Company
- Open
- 12.14
- Day high
- 12.24
- Day low
- 12.04
- Prev close
- 12.01
- Volume
- 1.8M
- Mkt cap
- $2.5B
- P/E (TTM)
- 16.6
- EPS (TTM)
- $0.74
- P/B
- 1.6
- P/S
- 2.2
- Yield
- 3.47%
- Per share
- $0.42
- ▼Insiders net selling -$232K over the last 3 months (5 open-market buys, 1 sale)
- 🏛Institutions accumulating (13F)
DiamondRock Hospitality Company (DRH) is a Real Estate company listed on NYSE. The stock is up 54% over the past year. Over the trailing 3 months, insiders filed 5 open-market buys and 1 sale (SEC Form 4).
DiamondRock Hospitality Company (DRH) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 9 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
DRH earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 31, 2026 | $0.22 | $0.44 | +103.6% | $318M | +1.1% |
| May 1, 2026 | $0.19 | $0.22 | +15.8% | $258M | +0.6% |
| Nov 6, 2025 | $0.25 | $0.29 | +16.0% | $285M | +4.5% |
| Aug 7, 2025 | $0.33 | $0.35 | +6.1% | $306M | +10.6% |
| May 1, 2025 | $0.17 | $0.19 | +11.8% | $255M | -0.5% |
| Feb 27, 2025 | $0.21 | $0.24 | +14.3% | $279M | +2.5% |
| Nov 8, 2024 | $0.12 | $0.26 | +116.7% | $285M | -0.5% |
| Aug 1, 2024 | $0.32 | $0.34 | +6.3% | $309M | +2.5% |
| May 2, 2024 | $0.16 | $0.17 | +6.3% | $256M | +3.0% |
| Feb 22, 2024 | $0.18 | $0.18 | +0.0% | $264M | +0.8% |
| Nov 1, 2023 | $0.23 | $0.26 | +13.0% | $277M | +3.5% |
| Aug 3, 2023 | $0.34 | $0.32 | -5.9% | $291M | -2.0% |
DRH insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 15, 2026 | Lepori Stephaniedirector | Buy | 64 | $9.45 |
| Jul 15, 2026 | Lepori Stephaniedirector | Buy | 111 | $12.08 |
| Jul 15, 2026 | Lepori Stephaniedirector | Buy | 131 | $10.17 |
| Jul 15, 2026 | Lepori Stephaniedirector | Buy | 124 | $9.16 |
| Jul 15, 2026 | Lepori Stephaniedirector | Buy | 154 | $7.51 |
| Jun 16, 2026 | Merrill Kathleendirector | Sell | 20,000 | $11.88 |
| May 13, 2026 | Hartmeier Michael A.director | Sell | 20,000 | $10.46 |
| May 5, 2026 | Zalotrawala Tabassumdirector | Grant | 10,753 | — |
| May 5, 2026 | Hartmeier Michael A.director | Grant | 10,753 | — |
| May 5, 2026 | WARDINSKI BRUCE Ddirector | Grant | 10,753 | — |
| May 5, 2026 | Lepori Stephaniedirector | Grant | 10,753 | — |
| May 5, 2026 | Merrill Kathleendirector | Grant | 10,753 | — |
| May 5, 2026 | Chi Timothydirector | Grant | 10,753 | — |
| May 5, 2026 | SHAW WILLIAM JOSEPHdirector | Grant | 10,753 | — |
| Mar 4, 2026 | Donnelly Jeffreydirector, officer: Chief Executive Officer | Grant | 149,798 | — |
Source: DRH SEC Form 4 filings, latest Jul 15, 2026. For informational purposes only — not investment advice.
See the full DRH insider & 13F page →DiamondRock Hospitality Company company profile
Overview
DiamondRock Hospitality Company (NYSE:DRH) is a self-advised real estate investment trust founded in 2005 that owns and operates a portfolio of premium hotels across the United States. The company went public on May 26, 2005, and has since built a strategically positioned collection of 31 hotels with over 10,000 rooms concentrated in top gateway markets and destination resort locations. DiamondRock focuses on owning high-quality properties operated under leading global brand families as well as unique boutique hotels in the lifestyle segment, positioning itself as a pure-play hotel ownership company without direct hotel management operations.
Business
DiamondRock operates in the hotel real estate investment trust (REIT) sector, which involves owning income-producing hotel properties and collecting rental income from hotel operators. Unlike traditional hotel companies that manage day-to-day operations, hotel REITs like DiamondRock function as property owners who lease their hotels to established hotel management companies and brands. The company's portfolio consists of two primary segments that generate distinct revenue streams. Urban hotels represent approximately 60% of the portfolio and are located in major metropolitan markets including Boston, New York, Chicago, Denver, Salt Lake City, and San Diego. These properties typically cater to business travelers, group bookings, and urban leisure guests, with revenue patterns that tend to be stronger during weekdays and business seasons. Resort hotels comprise about 40% of the portfolio and are situated in destination locations, with a significant concentration in Florida markets including Key West, Fort Lauderdale, and other leisure-oriented destinations. These properties primarily serve vacation travelers and generate higher revenues during peak leisure travel seasons. The resort segment has historically commanded premium rates due to their unique locations and experiential offerings. The company's hotels operate under well-known brand families including Marriott, Hilton, Hyatt, and Westin, as well as boutique lifestyle brands. This brand diversification helps ensure consistent operational standards while allowing DiamondRock to benefit from established reservation systems and loyalty programs that drive occupancy and revenue.
Revenue model
DiamondRock generates revenue primarily through hotel room rentals and ancillary services provided at its owned properties. The company collects income from room bookings, food and beverage operations, meeting and event spaces, parking, and other hotel amenities. Revenue is typically measured using industry metrics like Revenue Per Available Room (RevPAR), which combines occupancy rates and average daily room rates (ADR). The company's customers include business travelers, leisure tourists, group bookings for corporate events and associations, and meeting planners. Payment comes directly from guests staying at the properties, with bookings made through various channels including direct hotel bookings, online travel agencies, corporate travel programs, and group sales. Several factors significantly impact DiamondRock's profitability margins. Positive margin drivers include strong leisure travel demand, corporate group bookings recovery, successful hotel renovations that command premium rates, and efficient labor management. The company has benefited from a shift toward more resort-heavy portfolio mix, which typically generates higher margins than urban properties. Negative margin pressures include rising labor costs (with wage growth of 3-5% expected in urban markets), increased operating expenses, economic uncertainty affecting business travel demand, and seasonal fluctuations particularly impacting resort properties. Competition from alternative accommodations and economic downturns that reduce travel demand also pose margin risks. Additionally, capital expenditure requirements for property maintenance and renovations can impact free cash flow generation, though these investments are often necessary to maintain competitive positioning and rate premiums.
Competitive moat
DiamondRock's competitive moat is moderate but not particularly strong, relying primarily on location advantages and operational efficiency rather than unique business model characteristics. The company's primary defensive position comes from owning hotels in prime urban gateway markets and sought-after resort destinations where real estate supply is limited by zoning restrictions, high development costs, and geographic constraints. The location-based moat is most evident in markets like Key West, Vail, and prime urban locations in Boston and New York, where new hotel development faces significant regulatory and economic barriers. These properties benefit from scarcity value and can command premium rates due to limited competitive supply in highly desirable locations. However, the hotel REIT business model faces several competitive vulnerabilities. Primary competitive threats include the rise of alternative accommodations like Airbnb and vacation rentals, which directly compete for leisure travelers, particularly in resort markets. Economic cycles significantly impact travel demand, making the business inherently cyclical and vulnerable to recession, pandemic disruptions, or other events that reduce travel. Potential disruption could come from changing business travel patterns, as remote work and video conferencing reduce corporate travel demand permanently. Additionally, the company lacks control over hotel operations since properties are managed by third-party operators, limiting its ability to differentiate service quality or implement unique operational strategies. The hotel industry's high fixed costs and capital-intensive nature also mean that during downturns, competitors may engage in price competition that pressures margins across the sector. While DiamondRock's focus on premium properties provides some insulation, the company's moat is primarily dependent on real estate location advantages rather than sustainable competitive business model innovations.
Risks & safety
DiamondRock demonstrates a moderate margin of safety with strong liquidity but elevated valuation metrics and moderate leverage levels. **Cash Position and Solvency:** - Strong cash position of $100.6 million as of Q1 2025 - Excellent current ratio of 13.16, indicating strong short-term liquidity - Positive free cash flow of $2.0 million in Q1 2025, though down from $142.8 million for full year 2024 - Zero debt-to-equity ratio as of Q1 2025, representing significant deleveraging from 0.74x in 2024 **Valuation Concerns:** - High P/E ratio of 42.8x based on Q1 2025 earnings, indicating expensive valuation - EV/EBITDA of 7.0x appears more reasonable for REIT sector - Price-to-book ratio of 1.03x suggests trading near book value - Graham number of 2.76 indicates potential undervaluation by traditional value metrics **Other Considerations:** - Cyclical business model vulnerable to economic downturns and travel disruptions - Capital-intensive operations requiring ongoing renovation investments - Dividend yield providing income support during market volatility
Recent development
Over the past few years, DiamondRock has executed several strategic initiatives focused on portfolio optimization and capital efficiency. The company has actively pursued asset recycling, selling properties like the Westin Washington DC for $92 million in 2024 while exploring additional urban asset dispositions including potential sales of the Chicago Marriott and other smaller urban properties. Operational improvements have centered on technology upgrades and analytics capabilities. The company implemented a new Oracle cloud-based ERP system and introduced an Enterprise Analytics platform to identify operational efficiencies and best practices across the portfolio. These systems are designed to improve productivity and expense management across properties. Capital allocation strategy has shifted toward share repurchases and dividend increases. DiamondRock repurchased 3.1 million shares in 2024 at an average price of $8.33 per share, totaling $23.5 million in buybacks. The company increased its quarterly dividend to $0.08 per share and is considering a potential stub dividend in Q4 2025 depending on operating performance. Property repositioning efforts have included significant renovation projects across the portfolio. Recent completions include room renovations at the Westin San Diego Bayview, Bourbon Orleans, Hilton Garden in Times Square, and the rebranding of Sedona Orchards to Cliffs Sedona. These investments are aimed at commanding premium rates and improving competitive positioning. The company has also strategically focused on group business as a key growth driver, with group revenues increasing 15.7% in Q3 2024 and 8.1% for the full year. This shift toward group bookings provides more predictable revenue streams, though potentially at the expense of some rate upside during peak demand periods.
DRH company profile · for informational purposes only — not investment advice.
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