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.
6 star dividend payer and undervalued.
Share Price & News
How has DiamondRock Hospitality's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: DRH has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: DRH underperformed the US REITs industry which returned 16% over the past year.
Return vs Market: DRH underperformed the US Market which returned 17.9% over the past year.
Price Volatility Vs. Market
How volatile is DiamondRock Hospitality's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall StOne Thing To Remember About The DiamondRock Hospitality Company (NYSE:DRH) Share Price
1 month ago | Simply Wall StDid Changing Sentiment Drive DiamondRock Hospitality's (NYSE:DRH) Share Price Down By 32%?
1 month ago | Simply Wall StIs Now An Opportune Moment To Examine DiamondRock Hospitality Company (NYSE:DRH)?
Is DiamondRock Hospitality undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: DRH ($10.56) is trading below our estimate of fair value ($17.13)
Significantly Below Fair Value: DRH is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: DRH is good value based on its PE Ratio (11.6x) compared to the REITs industry average (37.2x).
PE vs Market: DRH is good value based on its PE Ratio (11.6x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: DRH's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: DRH is good value based on its PB Ratio (1.1x) compared to the US REITs industry average (2.1x).
How is DiamondRock Hospitality forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DRH's earnings are forecast to decline over the next 3 years (-45.9% per year).
Earnings vs Market: DRH's earnings are forecast to decline over the next 3 years (-45.9% per year).
High Growth Earnings: DRH's earnings are forecast to decline over the next 3 years.
Revenue vs Market: DRH's revenue (3.1% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: DRH's revenue (3.1% 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 (4.4%).
How has DiamondRock Hospitality performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DRH has a large one-off gain of $150.6M impacting its December 31 2019 financial results.
Growing Profit Margin: DRH's current net profit margins (19.6%) are higher than last year (10.2%).
Past Earnings Growth Analysis
Earnings Trend: DRH's earnings have declined by -7.4% per year over the past 5 years.
Accelerating Growth: DRH's earnings growth over the past year (109%) exceeds its 5-year average (-7.4% per year).
Earnings vs Industry: DRH earnings growth over the past year (109%) exceeded the REITs industry 7.6%.
Return on Equity
High ROE: DRH's Return on Equity (9.6%) is considered low.
Return on Assets
Return on Capital Employed
How is DiamondRock Hospitality's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Inventory Level: DRH has a high level of physical assets or inventory.
Debt Coverage by Assets: DRH's debt is not covered by short term assets (assets are 0.3x debt).
Financial Institutions Analysis
Asset Level: DRH's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if DRH has a sufficient allowance for bad loans.
Low Risk Liabilities: DRH reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if DRH has an acceptable proportion of non-loan assets held.
Low Risk Deposits: DRH has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if DRH has an appropriate level of bad loans.
What is DiamondRock Hospitality's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: DRH's dividend (4.73%) is higher than the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: DRH's dividend (4.73%) is in the top 25% of dividend payers in the US market (3.73%)
Stability and Growth of Payments
Stable Dividend: DRH's dividends per share have been stable in the past 10 years.
Growing Dividend: DRH's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (34%), DRH's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: DRH's dividends in 3 years are forecast to be thoroughly covered by earnings (0.2% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mark Brugger (49yo)
Mr. Mark W. Brugger has been the Chief Executive Officer at Diamondrock Hospitality Company since September 1, 2008 and has been its President since May 1, 2013. Mr. Brugger co-founded Diamondrock Hospital ...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD5.10M) is above average for companies of similar size in the US market ($USD3.81M).
Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.
|Executive VP of Asset Management & COO||3.1yrs||US$1.66m||0.018% $372.3k|
|Executive VP & Chief Investment Officer||5.8yrs||US$1.88m||0.034% $726.4k|
|Executive VP||10.1yrs||US$1.50m||0.067% $1.4m|
|Executive VP & CFO||0.5yrs||no data||0.032% $678.4k|
|Vice President of Acquisitions and Investments||5.2yrs||no data||no data|
|Senior VP & Treasurer||1.9yrs||no data||0.063% $1.3m|
|Director of Financial Planning & Analysis||0yrs||no data||no data|
Experienced Management: DRH's management team is seasoned and experienced (5.2 years average tenure).
|Independent Director||3.3yrs||US$167.50k||0.014% $297.8k|
|Lead Director||3.8yrs||US$202.50k||0.027% $575.0k|
|Independent Director||15.6yrs||US$187.50k||0.0042% $88.5k|
|Independent Chairman of the Board||16.1yrs||US$275.55k||0.17% $3.5m|
|Independent Director||15.6yrs||US$167.50k||0.026% $544.9k|
|Independent Director||4.7yrs||US$167.50k||0.019% $411.6k|
|Independent Director||1yrs||no data||no data|
Experienced Board: DRH's board of directors are considered experienced (8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
DiamondRock Hospitality Company's company bio, employee growth, exchange listings and data sources
- Name: DiamondRock Hospitality Company
- Ticker: DRH
- Exchange: NYSE
- Founded: 2004
- Industry: Hotel and Resort REITs
- Sector: Real Estate
- Implied Market Cap: US$2.123b
- Market Cap: US$2.114b
- Shares outstanding: 201.00m
- Website: https://www.drhc.com
Number of Employees
- DiamondRock Hospitality Company
- 2 Bethesda Metro Center
- Suite 1400
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|HBO||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||May 2005|
|DRH||NYSE (New York Stock Exchange)||Yes||Common Shares||US||USD||May 2005|
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.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/24 00:56|
|End of Day Share Price||2020/02/21 00:00|
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 here.