DiamondRock Hospitality Company

NasdaqGS:DRH Stock Report

Market Cap: US$2.4b

DiamondRock Hospitality Future Growth

Future criteria checks 1/6

DiamondRock Hospitality is forecast to grow earnings and revenue by 9.9% and 2.2% per annum respectively. EPS is expected to grow by 8% per annum. Return on equity is forecast to be 7.9% in 3 years.

Key information

9.9%

Earnings growth rate

8.02%

EPS growth rate

Hotel and Resort REITs earnings growth7.7%
Revenue growth rate2.2%
Future return on equity7.88%
Analyst coverage

Good

Last updated29 Jun 2026

Recent future growth updates

Recent updates

Narrative Update • Jun 26

DRH: Future Returns Will Reflect Sector Rerating And Execution With Capital Discipline

Analysts have lifted the fair value estimate for DiamondRock Hospitality to $11.95 from $11.45. This reflects updated price targets across the Street that are framed around sector re-rating, recent hotel REIT operating trends, and model revisions following recent results.
Narrative Update • Jun 11

DRH: Elevated Lodging Sector Hype Will Pressure Future P/E Repricing

Analysts have nudged the DiamondRock Hospitality price target higher, with the updated fair value estimate moving from about $9.50 to roughly $10.13 per share. This change reflects recent upward revisions to Street targets around stronger year to date operating performance and refreshed lodging REIT models.
Narrative Update • May 28

DRH: Future Returns Will Balance RevPAR Execution With Measured Capital Deployment

Analysts have lifted the average price target on DiamondRock Hospitality to $11.45 from $10.90, reflecting refreshed models following recent sector research and company updates. Analyst Commentary Recent Street research on DiamondRock Hospitality has focused on updated models and revised price targets across several firms, following company updates and broader work on lodging and lodging REITs. Bullish Takeaways Bullish analysts are lifting price targets, with several moves clustered in a relatively short period, which points to refreshed views on the stock’s risk and reward profile after recent company and sector updates.
Seeking Alpha • May 03

DiamondRock Hospitality Company: This Gem Is Set To Shine

Summary DiamondRock Hospitality Company delivered a strong Q1 2026, exceeding expectations and raising full-year guidance across all key metrics. DRH's AFFO/share guidance for 2026 is $1.15, reflecting 6.5% growth and a new company record, driven by structural improvements and disciplined capital allocation. The company maintains a conservatively leveraged, fully unsecured balance sheet, with net debt/EBITDA at 3.5x and significant liquidity, though 70% of debt is floating rate. DRH trades at a notable discount to peers at 9.1x P/AFFO, supports shares with a $300M buyback, and is rated 'Buy' with a $13 price target. Read the full article on Seeking Alpha
Narrative Update • Apr 30

DRH: Future Returns Will Reflect RevPAR Execution And Recent Capital Deployment

Analysts have lifted their average price target for DiamondRock Hospitality to about $10.90 from roughly $10.60, reflecting updated views on fair value, discount rate, revenue growth, profit margin and future P/E assumptions following a series of recent price target revisions and a new bullish initiation. Analyst Commentary Recent research on DiamondRock Hospitality has centered on how current earnings power, portfolio quality and balance sheet positioning line up with the refreshed price targets in the low to mid teens.
Narrative Update • Apr 16

DRH: Fair Value View Weighs Higher P/E Assumptions Against Execution Risks

Analysts have lifted their price targets on DiamondRock Hospitality by $0.50 to a fresh range around $10.75, citing updated assumptions for fair value at $9.50, a slightly lower discount rate, a revised revenue growth outlook, modestly higher profit margin expectations, and an updated future P/E of about 18.3x. Analyst Commentary Recent research has centered on how DiamondRock Hospitality's current share price lines up with updated views on fair value, profitability, and P/E assumptions.
Narrative Update • Apr 02

DRH: Future Returns Will Hinge On RevPAR Execution In Trading-Oriented Hotel REIT Sector

Analysts have raised the implied price target for DiamondRock Hospitality by about $0.12 to approximately $10.60. This change reflects a series of recent target increases and more constructive views on the company from multiple firms.
Narrative Update • Mar 18

DRH: Future Returns Will Depend On RevPAR And Trading-Oriented Hotel REIT Sector

DiamondRock Hospitality's updated analyst price target now sits around $10.48, up from about $10.19. This reflects analysts' refreshed views on fair value that incorporate recent target increases from several firms and a mix of slightly higher projected revenue growth, a modestly lower discount rate, a higher assumed future P/E multiple, and somewhat lower profit margin expectations.
Narrative Update • Mar 04

DRH: Fair Value View Balances Trading Risks And 2026 RevPAR EBITDA Potential

Analysts have nudged their average price target on DiamondRock Hospitality higher toward the low teens in dollars, citing a mix of relative valuation support, company specific catalysts, and what they see as a solid combination of market exposure and operating execution. Analyst Commentary Recent research updates on DiamondRock Hospitality cluster in a relatively tight price target range around the low double digits in US$, with most firms anchoring their views between US$9.50 and US$12.
Narrative Update • Feb 18

DRH: Trading Sector Risks Will Limit RevPAR And EBITDA Upside

Narrative Update on DiamondRock Hospitality Analysts have raised their blended price target on DiamondRock Hospitality by $1.50 to $9.50, supported by recent upgrades and target increases that highlight its relative valuation, company specific catalysts and expectations for steadier profitability metrics reflected in slightly higher revenue growth, profit margin and future P/E assumptions. Analyst Commentary Recent research on DiamondRock Hospitality clusters around a valuation range of about US$9.50 to US$12, with analysts weighing the company specific catalysts against what they view as a trading oriented hotel REIT sector.
Narrative Update • Feb 04

DRH: Fair Outlook Balances Trading Sector Risks With RevPAR EBITDA Catalysts

Analysts have raised their fair value estimate for DiamondRock Hospitality to $9.00 from $7.00, citing updated assumptions for revenue, profit margins and future P/E, along with a series of recent price target increases and rating changes across Wall Street. Analyst Commentary Recent research on DiamondRock Hospitality points to a mixed backdrop, with several firms updating ratings and price targets.
Narrative Update • Jan 21

DRH: Future Returns Will Depend On RevPAR Execution In A Trading-Oriented Sector

The analyst price target for DiamondRock Hospitality has been raised from US$9.75 to about US$10.19, as analysts factor in updated Street research that points to refined fair value estimates, a slightly higher assumed future P/E multiple, and modestly adjusted views on growth and margins. Analyst Commentary Recent Street research on DiamondRock Hospitality has been active, with several firms updating ratings and price targets as they reassess the company’s valuation, execution risks, and room for growth.
Narrative Update • Jan 06

DRH: Future Returns Will Rely On Execution Within A Trading-Oriented Sector

Analysts now frame DiamondRock Hospitality's outlook around a modest reset in expectations. Recent Street targets cluster around US$9 to US$10, supported by rationale that emphasizes clear business strategy, balance sheet strength, and a view of hotel REITs as more of a short term trading area than a long term return engine.
Narrative Update • Dec 18

DRH: Modest Price Objective Increase Will Maintain Balanced Risk Reward Profile

Analysts have modestly raised their price target on DiamondRock Hospitality from $9.59 to $9.75 per share. This change reflects slightly improved expectations for revenue growth and valuation multiples, despite a minor pullback in projected profit margins.
Narrative Update • Dec 04

DRH: Modest Price Objective Increase Will Support Balanced Risk Reward Outlook

Analysts modestly raised their price target on DiamondRock Hospitality from $8.50 to $9.00, reflecting improved expectations for revenue growth, profit margins, and valuation multiples. Analyst Commentary Bullish analysts view the higher price target as a signal that DiamondRock Hospitality is executing steadily against expectations, with improving fundamentals now better reflected in the valuation.
Seeking Alpha • Feb 26

DRH: 8%+ Yield From The Preferred Stock

Summary DiamondRock Hospitality Company (DRH) is a solid Hotel REIT with a geographically diversified portfolio of 36 premium hotels and resorts, offering a strong balance sheet and strategic capital allocation. DRH's financials show a balance sheet value of $2.72 billion in hotels, with total assets around $3.2 billion and debt at $1.1 billion, reflecting robust asset coverage. The company's preferred stock, DRH-A, offers an attractive 8.15% yield, supported by a significant cushion of 7% of FFO, making it a compelling fixed-income investment. Despite the inherent risks of hotel REITs, DRH-A's strong balance sheet and favorable credit score make it a superior choice among high-yield preferred stocks in the REIT sector. Read the full article on Seeking Alpha
Seeking Alpha • Jan 24

DiamondRock Hospitality: Counting Down To The Call Date Of The Preferred Stock

Summary DiamondRock Hospitality's preferred stock is attractive near the $25 call value, with a high likelihood of being called due to a strong balance sheet. The REIT's AFFO guidance suggests robust financial performance, with excellent preferred dividend coverage and substantial after-capex AFFO. Preferred shares offer an appealing total return of 3.27% over seven months, with potential annualized returns exceeding 5.5%. With just under $125M in preferred equity on a $1.65B total equity, the odds of calling the preferred shares are high, making it a solid investment. Read the full article on Seeking Alpha
Seeking Alpha • Oct 20

DiamondRock Hospitality: Wait For A Dip In The 8.25% Preferred Shares

Summary DiamondRock Hospitality's preferred dividends are well covered, with less than 5% of pre-dividend AFFO needed, and a strong balance sheet with $1.5B in common equity. The preferred shares, trading at a 4% premium, offer a 3.08% return over 10.5 months, lower than a 1-year US Treasury Bill. If preferred shares are called in August 2025, selling now is advisable due to low returns. Holding is better if you expect them to be called later. DiamondRock's common shares are also interesting, but I currently hold no position in them. Read the full article on Seeking Alpha
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New Narrative • Sep 12

Shifting To Group Business And Tactical Investments Propel Hospitality Leader To New Heights

Strategic focus on Group business and out-of-room spending boosts revenue growth, especially from banquet, catering, and AV services.
Seeking Alpha • Aug 08

DiamondRock Hospitality: Solid Q2 Performance, Strategic Share Repurchases Signal Long-Term Potential

Summary DiamondRock Hospitality reported strong Q2 earnings with revenue up 4.8% YoY, FFO per share beating estimates, and increased adjusted EBITDA by 7.8%. The company repurchased $20.6mn worth of shares in Q2 and has $176.5mn remaining capacity for future repurchases. DRH's low forward AFFO payout ratio and net debt position suggest potential for future growth and value creation for shareholders. Read the full article on Seeking Alpha

Earnings and Revenue Growth Forecasts

NasdaqGS:DRH - Analysts future estimates and past financials data (USD Millions)
DateRevenueEarningsFree Cash FlowCash from OpAvg. No. Analysts
12/31/20281,197129N/AN/A4
12/31/20271,16211968N/A10
12/31/20261,14011573N/A10
3/31/20261,12497161238N/A
12/31/20251,12092162244N/A
9/30/20251,12554252252N/A
6/30/20251,12558239239N/A
3/31/20251,12842132221N/A
12/31/20241,13038143224N/A
9/30/20241,11460201201N/A
6/30/20241,10661210210N/A
3/31/20241,08876192211N/A
12/31/20231,07577151238N/A
9/30/20231,06684233233N/A
6/30/20231,05885245245N/A
3/31/20231,04899251251N/A
12/31/20221,002100206206N/A
9/30/202293678178178N/A
6/30/202284848110110N/A
3/31/2022691-244646N/A
12/31/2021567-204-2-2N/A
9/30/2021436-409-51-51N/A
6/30/2021307-485-100-100N/A
3/31/2021202-536-129-129N/A
12/31/2020299-398-84-84N/A
9/30/2020478-5433N/A
6/30/2020668389292N/A
3/31/2020906140182182N/A
12/31/2019938183N/A193N/A
9/30/201992473N/A203N/A
6/30/201990593N/A230N/A
3/31/201988592N/A206N/A
12/31/201886488N/A218N/A
9/30/201884789N/A205N/A
6/30/201885079N/A187N/A
3/31/201885587N/A211N/A
12/31/201787092N/A202N/A
9/30/201787091N/A210N/A
6/30/201786699N/A204N/A
3/31/2017880107N/A211N/A
12/31/2016897115N/A216N/A
9/30/2016924117N/A222N/A
6/30/2016942111N/A222N/A
3/31/201693592N/A223N/A
12/31/201593186N/A228N/A
9/30/2015921124N/A222N/A

Analyst Future Growth Forecasts

Earnings vs Savings Rate: DRH's forecast earnings growth (9.9% per year) is above the savings rate (3.5%).

Earnings vs Market: DRH's earnings (9.9% per year) are forecast to grow slower than the US market (18.8% per year).

High Growth Earnings: DRH's earnings are forecast to grow, but not significantly.

Revenue vs Market: DRH's revenue (2.2% per year) is forecast to grow slower than the US market (12.9% per year).

High Growth Revenue: DRH's revenue (2.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: DRH's Return on Equity is forecast to be low in 3 years time (7.9%).

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/07/02 21:27
End of Day Share Price 2026/07/02 00:00
Earnings2026/03/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

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Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

DiamondRock Hospitality Company is covered by 33 analysts. 10 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Michael BellisarioBaird
Felicia Kantor HendrixBarclays
Richard HightowerBarclays