DiamondRock Hospitality Company (DRH) AI Stock Analysis

DiamondRock Hospitality Company operates as a self-advised real estate investment trust specializing in lodging properties across diverse geographic markets. The company focuses on top gateway cities and resort destinations, owning and managing 31 high-quality hotels with more than 10,000 rooms. Its portfolio includes properties operated under global brand families as well as distinctive boutique hotels in the lifestyle segment. The firm emphasizes acquiring and managing premium assets catering to business and leisure travelers, utilizing proactive asset management and operational initiatives to expand its footprint in high-demand markets.

Over a five-year period from FY2020 to FY2025, revenue grew at a CAGR of 30.2%. Annual revenue rose from $567.1M in FY2021 to $1.00B in FY2022, $1.07B in FY2023, and $1.13B in FY2024, before declining 0.8% to $1.12B in FY2025. Gross margin reached 55.2% in FY2025, while operating margin was 14.4% and net income stood at $101.4M ($0.79 per share). In the latest quarter ended June 30, 2026, revenue increased 4.1% year-over-year, while quarterly earnings grew 144.4%. For the trailing twelve months, revenue reached $1.14B with a net profit margin of 13.5%.

As of June 30, 2026, DiamondRock Hospitality held $106.0M in cash and short-term investments against total debt of $1.20B, resulting in net debt of $1.09B. Total assets were $3.07B and shareholders' equity stood at $1.52B, yielding a debt-to-equity ratio of 0.79 and a current ratio of 15.32. In FY2025, the company generated operating cash flow of $243.7M and free cash flow of $162.1M. Cash deployment during FY2025 included $81.6M in capital expenditures, $108.1M in dividends paid, and $156.1M in share buybacks.

At $13.42, DiamondRock Hospitality has a market capitalization of $2.76B and an enterprise value of $3.59B. The stock trades at a trailing P/E of 18.6x and a forward P/E of 19.8x, compared to the median of its US-listed Real Estate peers of 21.6x trailing and 23.5x forward. Its EV/EBITDA of 10.9x and price-to-sales of 2.4x also sit below the peer medians of 14.7x and 3.7x, respectively. Over the past year, the stock returned 82.4%, outpacing the S&P 500 (SPY) return of 16.8%, though its five-year return of 64.7% trails the index return of 83.0%.

DiamondRock Hospitality pays a forward annual dividend of $0.44 per share, resulting in a dividend yield of 3.28%. The payout ratio is 45.1%, and the company has paid dividends for 5 consecutive years. Dividends are distributed on a quarterly frequency, with the last ex-dividend date on September 30, 2026. Total dividends paid in FY2025 were $108.1M.

Wall Street analyst coverage consists of 7 Strong Buy ratings and 7 Hold ratings, with no Buy, Sell, or Strong Sell recommendations. The mean price target is $14.04, representing a 4.6% upside from the last close of $13.42. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $1.15B and EPS of $0.78, representing 77.4% EPS growth. DiamondRock Hospitality beat EPS estimates in each of the last 4 quarters, and its next earnings date is November 3, 2026.

This page is an AI-written research summary of DiamondRock Hospitality Company (DRH). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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