A Business at a Glance
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DiamondRock Hospitality Co
DRH
$2.7B
Mkt Cap
$12.85
+1.42%
DiamondRock Hospitality Co (DRH) has a current P/E ratio of 29.2, compared to its historical median P/E of 19.1. The stock is currently considered Fair based on its historical valuation range.
DiamondRock Hospitality Co (DRH) has a 5-year average return on invested capital (ROIC) of 2.5%. This is below average and may indicate limited pricing power.
DiamondRock Hospitality Co (DRH) has a market capitalization of $2.6B. It is classified as a mid-cap stock.
Yes, DiamondRock Hospitality Co (DRH) pays a dividend with a trailing twelve-month yield of 2.85%. The company also returns capital through share buybacks, with a buyback yield of 0.99%.
Based on historical P/E analysis, DiamondRock Hospitality Co (DRH) appears fair. The current P/E of 29.2 is 53% above its historical median of 19.1. The estimated fair value CAGR (P/E method) is -9.1%.
DiamondRock Hospitality Co (DRH) operates in the Real Estate Investment Trusts industry, within the Real Estate sector.
Item 1. Business DiamondRock Hospitality Company is a self-managed and self-administered lodging-focused real estate investment trust ("REIT") that owns a portfolio of premium hotels and resorts. As of December 31, 2025, we owned 35 hotels with 9,595 rooms located in 26 markets in the United States. The markets that we target for ownership are those that we believe align with our strategic objectives, which include those in destination markets with constrained supply trends, those that provide geographic diversity relative to our existing portfolio, and those we consider to have high demand growth potential. Each hotel is positioned to maximize its cash flow and value; accordingly, we choose to operate nearly 40% of our portfolio as an independent hotel and the remainder are operated under a brand owned by one of the leading global lodging brand companies (Marriott International, Hilton Worldwide, or IHG Hotels & Resorts).
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 1.1B | 1.1B | 1.1B | 1.1B | 1.0B | 567M |
| Net Income | 97M | 92M | 38M | 77M | 100M | -204M |
| EPS | $0.47 | $0.44 | $0.18 | $0.36 | $0.47 | $-0.96 |
| Free Cash Flow | 233M | 162M | 143M | 151M | 139M | -9.6M |
| ROIC | 0.0% | 6.0% | 3.8% | 5.2% | 5.1% | -7.7% |
| Gross Margin | - | 23.2% | 20.3% | 22.9% | 23.1% | 81.8% |
| Debt/Equity | 0.76 | 0.76 | 0.69 | 0.72 | 0.75 | 0.76 |
| Dividends/Share | $0.37 | $0.36 | $0.12 | $0.12 | $0.03 | $0.00 |
| Operating Income | 0 | 153M | 105M | 142M | 140M | -164M |
| Operating Margin | 0.0% | 13.7% | 9.3% | 13.2% | 14.0% | -28.9% |
| ROE | 6.7% | 6.0% | 2.4% | 4.7% | 6.4% | -12.7% |
| Shares Outstanding | 205M | 208M | 212M | 213M | 212M | 213M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 629M | 674M | 897M | 870M | 864M | 938M | 299M | 567M | 1.0B | 1.1B | 1.1B | 1.1B | 1.1B |
| Gross Margin | 58.3% | 60.7% | 24.9% | 23.6% | 23.1% | 35.1% | 61.6% | 81.8% | 23.1% | 22.9% | 20.3% | 23.2% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 22M | 24M | 24M | 27M | 29M | 28M | 27M | 33M | 32M | 32M | 53M | 34M | 35M |
| EBIT | 137M | 145M | 157M | 140M | 132M | 252M | -370M | -164M | 140M | 142M | 105M | 153M | 0 |
| Op. Margin | 21.9% | 21.6% | 17.6% | 16.1% | 15.3% | 26.9% | -123.6% | -28.9% | 14.0% | 13.2% | 9.3% | 13.7% | 0.0% |
| Net Income | 163M | 86M | 115M | 92M | 88M | 183M | -398M | -204M | 100M | 77M | 38M | 92M | 97M |
| Net Margin | 26.0% | 12.7% | 12.8% | 10.6% | 10.2% | 19.6% | -132.8% | -36.0% | 9.9% | 7.1% | 3.4% | 8.2% | 8.6% |
| Non-Recurring | 0 | 10M | 0 | 3.2M | 0 | 0 | 174M | 127M | 2.8M | 941K | 34M | 1.1M | 1.1M |
| Returns on Capital | |||||||||||||
| ROIC | 5.2% | 5.0% | 5.4% | 4.9% | 4.7% | 7.8% | -13.8% | -7.7% | 5.1% | 5.2% | 3.8% | 6.0% | 0.0% |
| ROE | 8.9% | 4.7% | 6.3% | 5.0% | 4.7% | 9.7% | -21.9% | -12.7% | 6.4% | 4.7% | 2.4% | 6.0% | 6.7% |
| ROA | 5.2% | 2.6% | 3.6% | 3.0% | 2.8% | 5.5% | -12.1% | -6.7% | 3.2% | 2.4% | 1.2% | 3.0% | 3.2% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 180M | 228M | 216M | 202M | 218M | 193M | -84M | -2.3M | 206M | 238M | 224M | 244M | 238M |
| Free Cash Flow | 117M | 165M | 113M | 105M | 102M | 180M | -88M | -9.6M | 139M | 151M | 143M | 162M | 233M |
| Owner Earnings | 75M | 121M | 113M | 97M | 107M | 187M | -91M | -11M | 198M | 229M | 212M | 236M | 117M |
| CapEx | 63M | 63M | 103M | 97M | 115M | 13M | 3.9M | 7.3M | 68M | 86M | 82M | 82M | 4.7M |
| Maint. CapEx | 100M | 101M | 97M | 99M | 105M | 229K | 233K | 226K | 220K | 192K | 121K | 204K | 113M |
| Growth CapEx | 0 | 0 | 5.4M | 0 | 9.9M | 13M | 3.7M | 7.1M | 67M | 86M | 81M | 81M | 0 |
| D&A | 100M | 101M | 97M | 99M | 105M | 229K | 233K | 226K | 220K | 192K | 121K | 204K | 113M |
| CapEx/OCF | 34.8% | 27.7% | 47.7% | 48.2% | 119.4% | 53.1% | N/A | N/A | 3.9% | 2.0% | 2.4% | 1.0% | 2.0% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 77M | 96M | 101M | 101M | 103M | 102M | 26M | 119K | 6.4M | 32M | 26M | 98M | 75M |
| Dividend Yield | 4.4% | 5.2% | 7.0% | 5.7% | 5.4% | 5.6% | 2.2% | 0.0% | 0.4% | 2.0% | 1.5% | 6.0% | 2.8% |
| Share Buybacks | 2.4M | 2.7M | 7.2M | 0 | 32M | 43M | 10M | 0 | 12M | 2.4M | 26M | 37M | 26M |
| Buyback Yield | 0.1% | 0.2% | 0.4% | 0.0% | 2.1% | 2.1% | 0.6% | N/A | 0.8% | 0.1% | 1.4% | 2.0% | 1.0% |
| Stock-Based Comp | 5.3M | 5.7M | 5.3M | 6.2M | 5.6M | 6.4M | 7.2M | 8.7M | 7.8M | 8.8M | 12M | 7.4M | 7.8M |
| Debt Repayment | 0 | 0 | 11M | 12M | 14M | 14M | 14M | 15M | 15M | 9.5M | 82M | 296M | 296M |
| Balance Sheet | |||||||||||||
| Net Debt | 750M | 743M | 677M | 754M | 934M | 1.0B | 992M | 1.1B | 1.1B | 1.1B | 1.0B | 1.0B | 1.1B |
| Cash & Equiv. | 144M | 214M | 243M | 184M | 44M | 123M | 112M | 39M | 68M | 122M | 81M | 68M | 39M |
| Long-Term Debt | 1.0B | 1.2B | 921M | 938M | 978M | 1.1B | 1.0B | 1.1B | 1.2B | 1.2B | 1.1B | 1.1B | 1.1B |
| Debt/Equity | 0.57 | 0.64 | 0.50 | 0.51 | 0.52 | 0.61 | 0.65 | 0.76 | 0.75 | 0.72 | 0.69 | 0.76 | 0.76 |
| Interest Coverage | 2.4 | 2.8 | 3.8 | 3.6 | 3.2 | 5.4 | -6.9 | -4.4 | 3.7 | 2.2 | 1.6 | 2.4 | 2.4 |
| Equity | 1.8B | 1.8B | 1.8B | 1.8B | 1.9B | 1.9B | 1.7B | 1.5B | 1.6B | 1.6B | 1.6B | 1.4B | 1.4B |
| Total Assets | 3.2B | 3.3B | 3.1B | 3.1B | 3.2B | 3.4B | 3.1B | 3.0B | 3.2B | 3.2B | 3.2B | 3.0B | 3.0B |
| Total Liabilities | 1.3B | 1.5B | 1.2B | 1.3B | 1.3B | 1.5B | 1.4B | 1.4B | 1.6B | 1.6B | 1.6B | 1.5B | 1.6B |
| Intangibles | 34M | 24M | 18M | 27M | 64M | 0 | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | -219M | -234M | -221M | -230M | -246M | -179M | -577M | -781M | -701M | -649M | -679M | -662M | -666M |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | 113M | N/A | N/A | N/A | N/A | 82M | N/A | N/A | N/A | N/A | 79M | 84M | 42M |
| Per Share Data | |||||||||||||
| EPS | 0.83 | 0.43 | 0.57 | 0.46 | 0.43 | 0.90 | -1.97 | -0.96 | 0.47 | 0.36 | 0.18 | 0.44 | 0.47 |
| Owner EPS | 0.38 | 0.61 | 0.56 | 0.48 | 0.52 | 0.92 | -0.45 | -0.05 | 0.94 | 1.08 | 1.00 | 1.13 | 0.57 |
| Book Value | 9.29 | 9.16 | 9.12 | 9.18 | 9.22 | 9.38 | 8.48 | 7.12 | 7.51 | 7.73 | 7.49 | 6.95 | 7.08 |
| Cash Flow/Share | 0.91 | 1.14 | 1.07 | 1.01 | 1.07 | 0.95 | -0.41 | -0.01 | 0.97 | 1.12 | 1.06 | 1.17 | 1.03 |
| Dividends/Share | 0.41 | 0.50 | 0.50 | 0.50 | 0.50 | 0.50 | 0.13 | 0.00 | 0.03 | 0.12 | 0.12 | 0.36 | 0.37 |
| Shares Out. | 196.8M | 199.1M | 201.4M | 199.7M | 204.1M | 203.9M | 201.9M | 212.9M | 211.7M | 212.6M | 212.4M | 208.2M | 204.6M |
| Valuation | |||||||||||||
| P/E Ratio | 13.1 | 17.1 | 15.6 | 20.4 | 17.8 | 11.1 | N/A | N/A | 15.4 | 24.5 | 47.7 | 20.6 | 27.2 |
| P/FCF | 18.2 | 8.9 | 15.9 | 17.9 | 15.3 | 11.3 | N/A | N/A | 11.1 | 12.4 | 12.8 | 11.6 | 11.3 |
| EV/EBIT | 21.0 | 15.2 | 14.8 | N/A | N/A | N/A | N/A | N/A | 18.4 | 19.8 | 635.9 | 421.2 | N/A |
| Price/Book | 1.2 | 0.8 | 1.0 | 1.0 | 0.8 | 1.1 | 0.9 | 1.2 | 1.0 | 1.1 | 1.1 | 1.3 | 1.8 |
| Price/Sales | 2.8 | 2.8 | 2.2 | 2.0 | 2.2 | 1.9 | 3.9 | 3.2 | 1.8 | 1.5 | 1.6 | 1.5 | 2.3 |
| FCF Yield | 5.5% | 11.2% | 6.3% | 5.6% | 6.5% | 8.9% | -5.7% | -0.5% | 9.0% | 8.1% | 7.8% | 8.6% | 8.9% |
| Market Cap | 2.1B | 1.5B | 1.8B | 1.9B | 1.6B | 2.0B | 1.5B | 1.8B | 1.5B | 1.9B | 1.8B | 1.9B | 2.6B |
| Avg. Price | 8.96 | 9.35 | 7.19 | 8.89 | 9.37 | 8.95 | 5.85 | 8.50 | 8.32 | 7.59 | 8.26 | 7.90 | 12.85 |
| Year-End Price | 10.84 | 7.37 | 8.89 | 9.36 | 7.67 | 9.95 | 7.66 | 8.58 | 7.24 | 8.82 | 8.59 | 9.05 | 12.85 |
DiamondRock Hospitality Co passes 1 of 9 quality checks, indicating weak fundamentals.
DiamondRock Hospitality Co trades at 29.2x trailing earnings, compared to its 15-year median P/E of 19.1x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 10.9x vs a median of 12.6x. The company's 5-year average ROIC is 2.5% with a gross margin of 34.3%. Total shareholder yield (dividends + buybacks) is 3.8%. At current prices, the estimated annualized return to fair value is +50.2%.
DiamondRock Hospitality Co (DRH) reported annual revenue of $1.1 billion in its most recent fiscal year, based on SEC EDGAR filings.
DiamondRock Hospitality Co (DRH) has a net profit margin of 8.2%. This is a modest margin.
DiamondRock Hospitality Co (DRH) generated $162 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
DiamondRock Hospitality Co (DRH) has a debt-to-equity ratio of 0.76. This indicates moderate leverage.
DiamondRock Hospitality Co (DRH) reported earnings per share (EPS) of $0.44 in its most recent fiscal year.
DiamondRock Hospitality Co (DRH) has a return on equity (ROE) of 6.0%. This indicates moderate shareholder returns.
DiamondRock Hospitality Co (DRH) has a 5-year average gross margin of 34.3%. This indicates decent pricing power.
The Ledger Terminal provides 16 years of financial data for DiamondRock Hospitality Co (DRH), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
DiamondRock Hospitality Co (DRH) has a book value per share of $6.95, based on its most recent annual SEC filing.
No recent press releases.