Diamondrock (DRH) AI Stock Analysis

• Market Cap: $1.89B
• Dividend Yield: 5.1%
• Average Volume (3M): 3.79M
• Price to Earnings (P/E): 35.3
• Beta (1Y): 0.83
• Revenue Growth: 0.95%
• EPS Growth: -8.40%
• Country: US
• Employees: 31
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Hotel & Motel
• EPS (TTM): 0.10
• Shares Outstanding: 203,703,190
• 10 Day Avg. Volume: 2,864,229
• 30 Day Avg. Volume: 3,789,963
• PEG Ratio: -0.79
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 1.68
• P/FCF Ratio: 13.30
• Enterprise Value/Market Cap: 1.40
• Enterprise Value/Revenue: 2.35
• Enterprise Value/Gross Profit: 5.17
• Enterprise Value/Ebitda: 10.95
• 1Y Price Target: $9.65
• Price Target Upside: 4.78% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 0.43
• Revenue Forecast (FY): $1.12B

• Rating: 65 Neutral
• Price Target: $9.50 ▲(3.15% Upside)

Diamondrock's overall stock score reflects stable financial performance and strategic initiatives that enhance shareholder value. While the high P/E ratio suggests potential overvaluation, the attractive dividend yield and positive earnings call outcomes provide a balanced outlook. Technical indicators show moderate momentum, supporting a cautiously optimistic view.

Positive Factors

Strategic Focus on Shareholder Value

By actively managing its portfolio and focusing on shareholder value, DiamondRock aims to drive long-term growth and improve its competitive positioning in the hospitality industry.

Successful Debt Refinancing

Refinancing and extending debt maturities enhances financial flexibility and reduces risk, supporting long-term operational stability and growth.

Revenue Growth in Non-Room Segments

Growth in non-room revenue segments diversifies income streams and reduces reliance on room occupancy, enhancing overall revenue stability.

Negative Factors

Decline in Leisure Transient and Group Room Revenue

Declines in key revenue segments like leisure transient and group room revenue can impact overall profitability and signal challenges in market demand.

RevPAR Decline in Resort Portfolio

A decline in RevPAR within the resort portfolio suggests potential issues in pricing power or occupancy, which could affect revenue growth and margins.

Impact of Federal Government Shutdown

The federal government shutdown's impact on forecasts indicates vulnerability to external macroeconomic factors, affecting short-term and potentially long-term performance.

Diamondrock Business Overview & Revenue Model

Company Description

DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in top gateway markets and destination resort locations. The Company owns 31 premium quality hotels with over 10,000 rooms. The Company has strategically positioned its hotels to be operated both under leading global brand families as well as unique boutique hotels in the lifestyle segment.

How the Company Makes Money

DiamondRock generates revenue primarily through the operations of its hotel properties, which include room rentals, food and beverage services, and other ancillary services provided to guests. The company's revenue model is primarily based on the rental income from hotel rooms, which is influenced by occupancy rates and average daily rates (ADR). Additionally, DRH benefits from management fees and incentives when properties exceed performance benchmarks. The company often enters into long-term management agreements with leading hotel operators, which not only enhances its operational capabilities but also aligns its interests with those of its partners. Furthermore, through strategic acquisitions and renovations of properties, DiamondRock seeks to increase the overall value of its portfolio, thereby contributing to its revenue growth.

Diamondrock Financial Statement Overview

Summary

Diamondrock shows stable financial performance with consistent revenue growth and improving profitability metrics. The balance sheet is robust with manageable leverage, and cash flow generation is strong. However, potential risks from cost pressures and high debt levels could impact future profitability and growth.

Income Statement

Diamondrock's income statement shows moderate performance with a gross profit margin of 41.89% and a net profit margin of 5.25% for the TTM. Revenue growth has been positive at 2.3% TTM, although it has slowed compared to previous years. The EBIT and EBITDA margins are 7.96% and 21.30% respectively, indicating stable operational efficiency. However, the decline in gross profit margin from the previous year suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.76, indicating moderate leverage. Return on equity stands at 3.75% TTM, showing a slight improvement. The equity ratio is healthy, suggesting a solid capital structure. However, the relatively high debt level could pose risks if revenue growth slows further.

Cash Flow

Cash flow analysis reveals a positive trend with a 13.1% growth in free cash flow TTM. The operating cash flow to net income ratio is strong at 33.62, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio of 0.54 suggests good cash conversion, though it has decreased from the previous year.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.13B	1.13B	1.07B	1.00B	567.13M	299.49M
Gross Profit	510.71M	617.94M	293.11M	569.14M	282.14M	-41.14M
EBITDA	241.19M	228.90M	263.33M	260.85M	-52.13M	-253.77M
Net Income	63.97M	48.05M	86.34M	109.33M	-194.58M	-394.38M
Balance Sheet
Total Assets	3.15B	3.17B	3.24B	3.21B	2.97B	3.15B
Cash, Cash Equivalents and Short-Term Investments	145.34M	81.38M	121.59M	67.56M	38.62M	111.80M
Total Debt	1.19B	1.18B	1.29B	1.30B	1.18B	1.15B
Total Liabilities	1.57B	1.57B	1.59B	1.61B	1.44B	1.43B
Stockholders Equity	1.57B	1.59B	1.64B	1.59B	1.52B	1.71B
Cash Flow
Free Cash Flow	136.87M	142.82M	118.55M	-43.36M	-276.07M	-173.32M
Operating Cash Flow	251.52M	224.41M	237.56M	206.24M	-2.31M	-83.69M
Investing Cash Flow	-25.63M	-112.12M	-120.85M	-248.60M	-62.20M	-78.97M
Financing Cash Flow	-150.26M	-150.67M	-56.73M	74.03M	5.17M	117.71M

Diamondrock Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DRH, the sentiment is Positive. The current price of 9.21 is above the 20-day moving average (MA) of 9.01, above the 50-day MA of 8.53, and above the 200-day MA of 7.89, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 60.41 is Neutral, neither overbought nor oversold. The STOCH value of 80.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DRH.

Diamondrock Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
DRH	65 Neutral	$1.89B	35.29	3.98%	5.10%	0.95%	-8.40%
XHR	64 Neutral	$1.42B	26.75	4.58%	3.60%	4.29%	141.01%
RLJ	58 Neutral	$1.18B	161.49	1.49%	7.76%	-0.58%	-83.32%
SHO	57 Neutral	$1.74B	994.57	0.88%	3.93%	3.04%	-98.77%
PK	56 Neutral	$2.18B	―	-0.36%	12.82%	-3.57%	-104.55%
PEB	54 Neutral	$1.31B	-9.72	-3.74%	0.34%	0.99%	-360.58%

Diamondrock Corporate Events

DiamondRock Highlights Strategic Focus on Shareholder Value

DiamondRock Hospitality Company has released a presentation intended for investor meetings, highlighting its strategic focus on capital recycling and shareholder value creation. The company has been actively managing its portfolio by repurchasing shares, optimizing renovation cycles, and reallocating investments to enhance free cash flow and shareholder returns. This approach is expected to drive long-term growth and improve the company’s competitive positioning in the hospitality industry.

DiamondRock Announces Redemption of Preferred Stock

On November 20, 2025, DiamondRock Hospitality Company announced the redemption of its 8.250% Series A Cumulative Redeemable Preferred Stock, scheduled for December 31, 2025. The company will use approximately $121.5 million cash on hand for the redemption, impacting its financial operations by eliminating future dividend obligations on these shares.

DiamondRock Transfers Stock Listing to Nasdaq

On November 12, 2025, DiamondRock Hospitality Company announced its decision to transfer the listing of its common stock from the New York Stock Exchange (NYSE) to the Nasdaq Stock Market. The transfer is set to take effect on December 1, 2025, with the stock continuing to trade under the symbol ‘DRH’. This move is expected to provide cost-effective exchange listing, trading advisory services, and enhanced marketing opportunities, aligning with the company’s strategic objectives. The transfer signifies a new chapter for DiamondRock, as it joins Nasdaq’s community of innovative companies, potentially enhancing its market positioning and offering benefits to its shareholders.