(DRH) Diamondrock Hospitality - Overview
Sector: Real Estate | Industry: REIT - Hotel & Motel | Exchange: NYSE (USA) | Market Cap: 2.198m USD | Total Return: 51.4% in 12m
Avg Turnover: 18.9M
EPS Trend: 47.5%
Qual. Beats: 0
Rev. Trend: 88.1%
Qual. Beats: 0
Warnings
Beneish M-Score -1.17 > -1.5 - likely earnings manipulation
Altman Z'' -1.51 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
DiamondRock Hospitality Company (NYSE: DRH) is a self-advised real estate investment trust (REIT) specializing in the ownership of premium hotels and resorts. Established in 2004, the company maintains a geographically diversified portfolio of 35 properties, totaling approximately 9,600 rooms across major leisure destinations and gateway markets in the United States.
The business model utilizes a dual-branding strategy, operating assets under recognized global brand families while simultaneously managing independent boutique hotels in the lifestyle segment. As a Hotel REIT, the company is structured to distribute at least 90% of its taxable income to shareholders, a requirement for maintaining its tax-advantaged status in the real estate sector. Investors may find additional performance metrics for this ticker by examining the comprehensive data available on ValueRay.
By focusing on high-barrier-to-entry markets and diverse operator structures, DiamondRock aims to capture demand from both corporate travel and the growing upscale leisure demographic. The company’s portfolio concentration in gateway cities provides exposure to international travel hubs and primary domestic business centers.
- Leisure travel demand volatility impacts revenue across premium resort portfolio
- Interest rate fluctuations affect debt servicing costs and REIT valuation
- Independent lifestyle hotel conversions drive higher average daily rate growth
- Labor cost inflation and staffing shortages compress property-level operating margins
- Strategic asset acquisitions and dispositions influence portfolio net asset value
| Net Income: 104.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.05 > 0.02 and ΔFCF/TA 3.11 > 1.0 |
| NWC/Revenue: -28.60% < 20% (prev -3.37%; Δ -25.23% < -1%) |
| CFO/TA 0.08 > 3% & CFO 238.0m > Net Income 104.0m |
| Net Debt (1.25b) to EBITDA (278.7m): 4.50 < 3 |
| Current Ratio: 0.11 > 1.5 & < 3 |
| Outstanding Shares: last quarter (206.8m) vs 12m ago -1.69% < -2% |
| Gross Margin: 55.54% > 18% (prev 0.55%; Δ 5.50k% > 0.5%) |
| Asset Turnover: 36.78% > 50% (prev 36.38%; Δ 0.40% > 0%) |
| Interest Coverage Ratio: 2.68 > 6 (EBITDA TTM 278.7m / Interest Expense TTM 61.4m) |
| A: -0.11 (Total Current Assets 39.3m - Total Current Liabilities 360.7m) / Total Assets 3.01b |
| B: -0.22 (Retained Earnings -666.4m / Total Assets 3.01b) |
| C: 0.05 (EBIT TTM 164.9m / Avg Total Assets 3.06b) |
| D: -0.43 (Book Value of Equity -669.2m / Total Liabilities 1.56b) |
| Altman-Z'' = -1.51 = D |
| DSRI: 1.01 (Receivables 161.2m/161.0m, Revenue 1.12b/1.13b) |
| GMI: 0.99 (GM 55.54% / 54.89%) |
| AQI: 4.22 (AQ_t 0.10 / AQ_t-1 0.02) |
| SGI: 1.00 (Revenue 1.12b / 1.13b) |
| TATA: -0.04 (NI 104.0m - CFO 238.0m) / TA 3.01b) |
| Beneish M = -1.17 (Cap -4..+1) = D |
As of June 01, 2026, the stock is trading at USD 10.99 with a total of 1,432,470 shares traded.
Over the past week, the price has changed by +1.95%,
over one month by +7.75%,
over three months by +11.30% and
over the past year by +51.36%.
Diamondrock Hospitality has received a consensus analysts rating of 3.67. Therefore, it is recommended to hold DRH.
- StrongBuy: 4
- Buy: 0
- Hold: 8
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 11.4 | 3.5% |
P/E Trailing = 23.2826
P/E Forward = 19.8413
P/S = 1.9563
P/B = 1.5123
P/EG = 2.5153
Revenue TTM = 1.12b USD
EBIT TTM = 164.9m USD
EBITDA TTM = 278.7m USD
Long Term Debt = 1.10b USD (from longTermDebt, last quarter)
Short Term Debt = unknown (none)
Debt = 1.29b USD (from shortLongTermDebtTotal, last quarter) + Leases 96.6m
Net Debt = 1.25b USD (calculated: Debt 1.29b - CCE 39.3m)
Enterprise Value = 3.45b USD (2.20b + Debt 1.29b - CCE 39.3m)
Interest Coverage Ratio = 2.68 (Ebit TTM 164.9m / Interest Expense TTM 61.4m)
EV/FCF = 23.13x (Enterprise Value 3.45b / FCF TTM 149.2m)
FCF Yield = 4.32% (FCF TTM 149.2m / Enterprise Value 3.45b)
FCF Margin = 13.28% (FCF TTM 149.2m / Revenue TTM 1.12b)
Net Margin = 9.26% (Net Income TTM 104.0m / Revenue TTM 1.12b)
Gross Margin = 55.54% ((Revenue TTM 1.12b - Cost of Revenue TTM 499.7m) / Revenue TTM)
Gross Margin QoQ = 54.40% (prev 94.14%)
Tobins Q-Ratio = 1.15 (Enterprise Value 3.45b / Total Assets 3.01b)
Interest Expense / Debt = 4.75% (Interest Expense 61.4m / Debt 1.29b)
Taxrate = 0.32% (46.0k / 14.6m)
NOPAT = 164.4m (EBIT 164.9m * (1 - 0.32%))
Current Ratio = 0.07 (Total Current Assets 39.3m / Total Current Liabilities 525.5m)
Debt / Equity = 0.89 (Debt 1.29b / totalStockholderEquity, last quarter 1.45b)
Debt / EBITDA = 4.50 (Net Debt 1.25b / EBITDA 278.7m)
Debt / FCF = 8.40 (Net Debt 1.25b / FCF TTM 149.2m)
Total Stockholder Equity = 1.51b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.40% (Net Income 104.0m / Total Assets 3.01b)
RoE = 4.78% (Net Income TTM 104.0m / Total Stockholder Equity 2.18b)
RoCE = 5.03% (EBIT 164.9m / Capital Employed (Equity 2.18b + L.T.Debt 1.10b))
RoIC = 5.55% (NOPAT 164.4m / Invested Capital 2.96b)
WACC = 7.51% (E(2.20b)/V(3.49b) * Re(9.14%) + D(1.29b)/V(3.49b) * Rd(4.75%) * (1-Tc(0.00)))
Discount Rate = 9.14% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -77.78 | Cagr: -1.22%
[DCF] Terminal Value 77.97% ; FCFF base≈112.4m ; Y1≈128.8m ; Y5≈189.6m
[DCF] Fair Price = 7.83 (EV 2.85b - Net Debt 1.25b = Equity 1.60b / Shares 204.5m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 47.50 | EPS CAGR: 9.40% | SUE: 0.82 | # QB: 0
Revenue Correlation: 88.08 | Revenue CAGR: 2.36% | SUE: 0.28 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.22 | Chg30d=+0.00% | Revisions=N/A | Analysts=1
EPS next Quarter (2026-09-30): EPS=0.15 | Chg30d=-4.76% | Revisions=-20% | Analysts=2
EPS current Year (2026-12-31): EPS=0.54 | Chg30d=+0.00% | Revisions=N/A | GrowthEPS=+12.4% | GrowthRev=+2.0%
EPS next Year (2027-12-31): EPS=0.57 | Chg30d=+1.18% | Revisions=+0% | GrowthEPS=+5.5% | GrowthRev=+2.2%
[Analyst] Revisions Ratio: -20%