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DiamondRock Hospitality

NYSE:DRH
Snowflake Description

Average dividend payer and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DRH
NYSE
$2B
Imp Market Cap
  1. Home
  2. US
  3. Real Estate
Company description

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 last earnings update was 12 days ago. More info.


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DRH Share Price and Events
7 Day Returns
-1.5%
NYSE:DRH
0.2%
US REITs
-1%
US Market
1 Year Returns
-20.7%
NYSE:DRH
8.2%
US REITs
-0.4%
US Market
DRH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
DiamondRock Hospitality (DRH) -1.5% -5.1% -11.2% -20.7% -10% -28.9%
US REITs 0.2% 2% 2.9% 8.2% 8.7% 25%
US Market -1% -3.3% 0.4% -0.4% 30.4% 37.1%
1 Year Return vs Industry and Market
  • DRH underperformed the REITs industry which returned 8.2% over the past year.
  • DRH underperformed the Market in United States of America which returned -0.4% over the past year.
Price Volatility
DRH
Industry
5yr Volatility vs Market

DRH Value

 Is DiamondRock Hospitality undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of DiamondRock Hospitality to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for DiamondRock Hospitality.

NYSE:DRH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations
Levered Adjusted Funds From Operations Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:DRH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
REITs Unlevered Beta Simply Wall St/ S&P Global 0.47
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.474 (1 + (1- 21%) (62.41%))
0.804
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.804 * 5.96%)
7.52%

Discounted Cash Flow Calculation for NYSE:DRH using 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations Model

NYSE:DRH Discount to Share Price
Calculation Result
Value per share (USD) From above. $13.21
Current discount Discount to share price of $9.40
= -1 x ($9.40 - $13.21) / $13.21
28.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price DiamondRock Hospitality is available for.
Intrinsic value
29%
Share price is $9.4 vs Future cash flow value of $13.21
Current Discount Checks
For DiamondRock Hospitality to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • DiamondRock Hospitality's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • DiamondRock Hospitality's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for DiamondRock Hospitality's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are DiamondRock Hospitality's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:DRH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $0.45
NYSE:DRH Share Price ** NYSE (2019-08-16) in USD $9.4
United States of America REITs Industry PE Ratio Median Figure of 153 Publicly-Listed REITs Companies 33.56x
United States of America Market PE Ratio Median Figure of 3,095 Publicly-Listed Companies 17.23x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of DiamondRock Hospitality.

NYSE:DRH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:DRH Share Price ÷ EPS (both in USD)

= 9.4 ÷ 0.45

20.72x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • DiamondRock Hospitality is good value based on earnings compared to the US REITs industry average.
  • DiamondRock Hospitality is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does DiamondRock Hospitality's expected growth come at a high price?
Raw Data
NYSE:DRH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 20.72x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
-4.3%per year
United States of America REITs Industry PEG Ratio Median Figure of 140 Publicly-Listed REITs Companies 2.05x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.4x

*Line of best fit is calculated by linear regression .

NYSE:DRH PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 20.72x ÷ -4.3%

-4.76x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • DiamondRock Hospitality earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on DiamondRock Hospitality's assets?
Raw Data
NYSE:DRH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $9.07
NYSE:DRH Share Price * NYSE (2019-08-16) in USD $9.4
United States of America REITs Industry PB Ratio Median Figure of 191 Publicly-Listed REITs Companies 1.93x
United States of America Market PB Ratio Median Figure of 5,265 Publicly-Listed Companies 1.7x
NYSE:DRH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:DRH Share Price ÷ Book Value per Share (both in USD)

= 9.4 ÷ 9.07

1.04x

* Primary Listing of DiamondRock Hospitality.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • DiamondRock Hospitality is good value based on assets compared to the US REITs industry average.
X
Value checks
We assess DiamondRock Hospitality's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)
  5. DiamondRock Hospitality has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

DRH Future Performance

 How is DiamondRock Hospitality expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-4.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is DiamondRock Hospitality expected to grow at an attractive rate?
  • DiamondRock Hospitality's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • DiamondRock Hospitality's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • DiamondRock Hospitality's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:DRH Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:DRH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts -4.3%
NYSE:DRH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 2.3%
United States of America REITs Industry Earnings Growth Rate Market Cap Weighted Average 6.8%
United States of America REITs Industry Revenue Growth Rate Market Cap Weighted Average 4.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:DRH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:DRH Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 967 71 5
2020-12-31 964 227 77 9
2019-12-31 931 215 77 9
NYSE:DRH Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 905 232 93
2019-03-31 885 208 92
2018-12-31 864 219 88
2018-09-30 847 205 89
2018-06-30 850 187 79
2018-03-31 855 211 87
2017-12-31 870 202 92
2017-09-30 870 210 91
2017-06-30 866 204 99
2017-03-31 880 211 107
2016-12-31 897 216 115
2016-09-30 924 222 117

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • DiamondRock Hospitality's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • DiamondRock Hospitality's revenue is expected to grow by 2.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:DRH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from DiamondRock Hospitality Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:DRH Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.37 0.37 0.37 1.00
2020-12-31 0.42 0.45 0.39 2.00
2019-12-31 0.37 0.40 0.33 2.00
NYSE:DRH Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 0.45
2019-03-31 0.45
2018-12-31 0.43
2018-09-30 0.44
2018-06-30 0.39
2018-03-31 0.43
2017-12-31 0.46
2017-09-30 0.45
2017-06-30 0.49
2017-03-31 0.53
2016-12-31 0.57
2016-09-30 0.58

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • DiamondRock Hospitality is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess DiamondRock Hospitality's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
DiamondRock Hospitality has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

DRH Past Performance

  How has DiamondRock Hospitality performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare DiamondRock Hospitality's growth in the last year to its industry (REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • DiamondRock Hospitality's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • DiamondRock Hospitality's 1-year earnings growth exceeds its 5-year average (18.5% vs -8.1%)
  • DiamondRock Hospitality's earnings growth has exceeded the US REITs industry average in the past year (18.5% vs 16.9%).
Earnings and Revenue History
DiamondRock Hospitality's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from DiamondRock Hospitality Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:DRH Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 904.52 93.27 27.32
2019-03-31 884.55 92.36 27.65
2018-12-31 863.70 87.78 27.37
2018-09-30 847.33 88.56 28.50
2018-06-30 850.00 78.74 27.74
2018-03-31 855.33 87.33 26.84
2017-12-31 870.01 91.88 26.31
2017-09-30 869.59 91.01 25.01
2017-06-30 866.34 99.33 24.27
2017-03-31 879.73 106.91 24.05
2016-12-31 896.56 114.80 23.79
2016-09-30 923.74 116.59 24.28
2016-06-30 942.00 111.12 24.54
2016-03-31 935.14 91.77 24.25
2015-12-31 930.99 85.63 23.66
2015-09-30 920.82 123.54 20.52
2015-06-30 911.53 142.89 20.89
2015-03-31 891.67 169.98 21.05
2014-12-31 872.86 163.38 21.13
2014-09-30 850.70 106.59 22.10
2014-06-30 825.83 70.46 21.00
2014-03-31 813.91 32.66 19.12
2013-12-31 799.69 23.83 18.71
2013-09-30 841.86 31.24 18.57
2013-06-30 821.39 -7.13 19.89
2013-03-31 784.33 -12.77 20.26
2012-12-31 726.89 -18.08 20.70
2012-09-07 701.39 -27.90 21.76

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • DiamondRock Hospitality has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • DiamondRock Hospitality used its assets less efficiently than the US REITs industry average last year based on Return on Assets.
  • DiamondRock Hospitality's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess DiamondRock Hospitality's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
DiamondRock Hospitality has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

DRH Health

 How is DiamondRock Hospitality's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up DiamondRock Hospitality's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • DiamondRock Hospitality is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • DiamondRock Hospitality's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of DiamondRock Hospitality's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from DiamondRock Hospitality Company Filings, last reported 1 month ago.

NYSE:DRH Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 1,825.81 1,076.76 41.90
2019-03-31 1,829.94 1,034.91 36.52
2018-12-31 1,890.59 977.97 43.86
2018-09-30 1,916.21 931.64 169.65
2018-06-30 1,911.30 934.52 134.55
2018-03-31 1,817.75 937.60 69.09
2017-12-31 1,833.65 937.79 183.57
2017-09-30 1,832.62 940.81 166.62
2017-06-30 1,834.74 943.72 149.65
2017-03-31 1,821.30 918.01 112.43
2016-12-31 1,836.79 920.54 243.10
2016-09-30 1,844.38 922.96 235.97
2016-06-30 1,837.76 925.29 166.55
2016-03-31 1,816.84 1,025.53 48.90
2015-12-31 1,824.61 1,169.75 213.58
2015-09-30 1,822.75 1,056.20 61.98
2015-06-30 1,822.07 1,097.33 84.12
2015-03-31 1,820.69 1,034.66 87.16
2014-12-31 1,828.99 1,038.33 144.37
2014-09-30 1,722.20 1,125.31 119.07
2014-06-30 1,697.12 1,125.73 253.90
2014-03-31 1,663.72 1,088.26 111.48
2013-12-31 1,680.69 1,091.86 144.58
2013-09-30 1,666.76 1,060.30 43.45
2013-06-30 1,673.94 1,064.07 54.25
2013-03-31 1,674.54 1,077.66 77.38
2012-12-31 1,695.11 988.73 9.62
2012-09-07 1,701.40 1,018.47 21.76
  • DiamondRock Hospitality's level of debt (59%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (66.3% vs 59% today).
  • Debt is well covered by operating cash flow (21.6%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.7x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess DiamondRock Hospitality's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. DiamondRock Hospitality has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

DRH Dividends

 What is DiamondRock Hospitality's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.32%
Current annual income from DiamondRock Hospitality dividends. Estimated to be 5.31% next year.
If you bought $2,000 of DiamondRock Hospitality shares you are expected to receive $106 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • DiamondRock Hospitality's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).
  • DiamondRock Hospitality's dividend is above the markets top 25% of dividend payers in United States of America (3.84%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:DRH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
United States of America REITs Industry Average Dividend Yield Market Cap Weighted Average of 183 Stocks 3.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:DRH Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.50 5.00
2020-12-31 0.50 9.00
2019-12-31 0.50 9.00
NYSE:DRH Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-06-14 0.500 5.024
2019-03-15 0.500 4.700
2018-12-20 0.500 4.977
2018-09-14 0.500 4.707
2018-06-01 0.500 4.146
2018-03-19 0.500 4.466
2017-12-13 0.500 4.471
2017-09-18 0.500 4.534
2017-06-02 0.500 4.450
2017-03-15 0.500 4.529
2016-12-15 0.500 4.428
2016-09-13 0.500 5.180
2016-06-01 0.500 5.173
2016-03-14 0.500 5.367
2015-12-07 0.500 5.560
2015-08-26 0.500 4.337
2015-05-28 0.500 3.871
2015-05-08 0.500 3.723
2015-02-27 0.500 3.550
2015-02-24 0.500 3.485
2014-12-15 0.410 2.741
2014-09-12 0.410 2.979
2014-06-02 0.410 3.190
2014-03-25 0.410 3.398
2014-02-25 0.410 3.315
2013-12-17 0.340 2.909
2013-09-09 0.340 3.065
2013-06-10 0.340 3.510
2013-02-28 0.340 3.556
2012-12-19 0.320 3.501
2012-08-20 0.320 3.498
2012-05-04 0.320 3.228
2012-02-29 0.320 3.146
2011-12-16 0.320 3.130
2011-08-22 0.320 4.001
2011-05-31 0.320 3.281
2011-03-01 0.320 2.880
2009-12-15 0.330 3.365
2009-10-20 0.000 0.000
2009-07-28 0.000 0.000
2009-05-05 0.000 0.000
2008-12-18 0.000 0.000
2008-08-19 1.000 19.093

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of DiamondRock Hospitality's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (403.2x coverage).
X
Income/ dividend checks
We assess DiamondRock Hospitality's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can DiamondRock Hospitality afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. DiamondRock Hospitality has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

DRH Management

 What is the CEO of DiamondRock Hospitality's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Mark Brugger
COMPENSATION $5,100,461
AGE 49
TENURE AS CEO 10.9 years
CEO Bio

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 Hospitality Company in 2004 and successfully led its initial public offering (IPO) on the New York Stock Exchange the following year. Previously, he served as Executive Vice President, Treasurer and Chief Financial Officer at Diamondrock Hospitality Company from May 2004 to August 31, 2008. Mr. Brugger has an extensive background in real estate, capital markets and structured finance, including as Vice President of Project Finance at Marriott International, Inc. from 2000 to 2004. From 2001 to 2004, he served as Chief Executive Officer at Synthetic Fuel Enterprises, a wholly-owned subsidiary of Marriott International, Inc. From 1997 to 2000, Mr. Brugger served as Vice President of Investment Sales at Transwestern Commercial Services LLC. He served as an Independent Trustee of Chambers Street Properties from September 17, 2013 to September 4, 2015. Mr. Brugger has been a Director of Diamondrock Hospitality Company since September 1, 2008. From 1995 to 1997, he was the Land Development Director for Coscan Washington, Inc. From 1995 to 1997, Mr. Brugger was the Land Development Director for Brookfield Residential Properties, Inc. (formerly Coscan Washington, Inc.). Mr. Brugger serves on Marriott's Owners' Council, is a member of the Real Estate Roundtable and Urban Land Institute, and serves on the Board of Directors of the American Hotel & Lodging Association. Mr. Brugger served as a Trustee of Gramercy Property Trust Inc. until September 04, 2015. He has received recognition for his work at DiamondRock, including being named to the Forbes list of America‘s Most Powerful CEOs 40 and Under and a finalist for the E&Y Entrepreneur of the Year Award. Mr. Brugger received a J.D. from the Washington School of Law in 1995 and a B.A. in Philosophy from the University of Maryland in 1992.

CEO Compensation
  • Mark's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Mark's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the DiamondRock Hospitality management team in years:

4.7
Average Tenure
50
Average Age
  • The tenure for the DiamondRock Hospitality management team is about average.
Management Team

Mark Brugger

TITLE
President
COMPENSATION
$5M
AGE
49
TENURE
10.9 yrs

Jay Johnson

TITLE
Executive VP & CFO
COMPENSATION
$1M
AGE
42
TENURE
1.3 yrs

Tom Healy

TITLE
Executive VP of Asset Management & COO
COMPENSATION
$2M
AGE
51
TENURE
2.6 yrs

Troy Furbay

TITLE
Executive VP & Chief Investment Officer
COMPENSATION
$2M
AGE
52
TENURE
5.3 yrs

William Tennis

TITLE
Executive VP
COMPENSATION
$2M
AGE
64
TENURE
9.6 yrs

Dustin Resnick

TITLE
Vice President of Acquisitions and Investments
TENURE
4.7 yrs

Briony Quinn

TITLE
Senior VP & Treasurer
AGE
48
TENURE
1.4 yrs

Sean Kensil

TITLE
Director of Financial Planning & Analysis
Board of Directors Tenure

Average tenure and age of the DiamondRock Hospitality board of directors in years:

7.5
Average Tenure
64.5
Average Age
  • The tenure for the DiamondRock Hospitality board of directors is about average.
Board of Directors

Bill McCarten

TITLE
Chairman of the Board
COMPENSATION
$276K
AGE
70
TENURE
15.6 yrs

Mark Brugger

TITLE
President
COMPENSATION
$5M
AGE
49
TENURE
10.9 yrs

Gilbert Ray

TITLE
Independent Director
COMPENSATION
$188K
AGE
75
TENURE
15.1 yrs

Bruce Wardinski

TITLE
Lead Director
COMPENSATION
$203K
AGE
59
TENURE
3.3 yrs

Bill Shaw

TITLE
Independent Director
COMPENSATION
$168K
AGE
73
TENURE
2.8 yrs

Maureen McAvey

TITLE
Independent Director
COMPENSATION
$168K
AGE
72
TENURE
15.1 yrs

Tim Chi

TITLE
Independent Director
COMPENSATION
$168K
AGE
42
TENURE
4.2 yrs

Kathleen Wayton

TITLE
Independent Director
AGE
59
TENURE
0.5 yrs
Who owns this company?
Recent Insider Trading
  • DiamondRock Hospitality individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
08. Jul 19 Sell Maureen McAvey Individual 28. Jun 19 28. Jun 19 -8,000 $10.36 $-82,880
X
Management checks
We assess DiamondRock Hospitality's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. DiamondRock Hospitality has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

DRH News

Simply Wall St News

Did DiamondRock Hospitality Company (NYSE:DRH) Insiders Sell Shares?

So before you buy or sell DiamondRock Hospitality Company (NYSE:DRH), you may well want to know whether insiders have been buying or selling. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' Check out our latest analysis for DiamondRock Hospitality DiamondRock Hospitality Insider Transactions Over The Last Year The Independent Director, Maureen McAvey, made the biggest insider sale in the last 12 months. … NYSE:DRH Recent Insider Trading, August 14th 2019 Does DiamondRock Hospitality Boast High Insider Ownership?

Simply Wall St -

Does DiamondRock Hospitality Company's (NYSE:DRH) CEO Salary Reflect Performance?

Our data indicates that DiamondRock Hospitality Company is worth US$2.1b, and total annual CEO compensation is US$5.1m. … NYSE:DRH CEO Compensation, August 1st 2019 Is DiamondRock Hospitality Company Growing? … On average over the last three years, DiamondRock Hospitality Company has shrunk earnings per share by 9.3% each year (measured with a line of best fit).

Simply Wall St -

Is DiamondRock Hospitality Company's (NYSE:DRH) ROE Of 5.1% Impressive?

The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for DiamondRock Hospitality: 5.1% = US$92m ÷ US$1.8b (Based on the trailing twelve months to March 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does DiamondRock Hospitality Have A Good Return On Equity? … If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

Simply Wall St -

Why You Shouldn't Look At DiamondRock Hospitality Company's (NYSE:DRH) Bottom Line

DiamondRock Hospitality Company is a US$2.1b mid-cap, real estate investment trust (REIT) based in Bethesda, United States. … Given that long-term debt is a multi-year commitment this is not unusual, however, the longer it takes for a company to pay back debt, the higher the risk associated with that company. … Instead of the P/E ratio, P/FFO is used instead, which is very common for REIT stocks.

Simply Wall St -

DiamondRock Hospitality (NYSE:DRH) Takes On Some Risk With Its Use Of Debt

Importantly, DiamondRock Hospitality Company (NYSE:DRH) does carry debt. … NYSE:DRH Historical Debt, June 19th 2019 How Healthy Is DiamondRock Hospitality's Balance Sheet? … Either way, since DiamondRock Hospitality does have more debt than cash, it's worth keeping an eye on its balance sheet.

Simply Wall St -

How DiamondRock Hospitality Company (NYSE:DRH) Can Impact Your Portfolio Volatility

Anyone researching DiamondRock Hospitality Company (NYSE:DRH) might want to consider the historical volatility of the share price. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … This is above 1, so historically its share price has been influenced by the broader volatility of the stock market.

Simply Wall St -

Introducing DiamondRock Hospitality (NYSE:DRH), The Stock That Dropped 12% In The Last Five Years

One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During the unfortunate half decade during which the share price slipped, DiamondRock Hospitality actually saw its earnings per share (EPS) improve by 29% per year. … While it's not completely obvious why the share price is down, a closer look at the company's history might help explain it

Simply Wall St -

DiamondRock Hospitality Company (NYSE:DRH): Immense Growth Potential?

The most recent earnings update DiamondRock Hospitality Company's (NYSE:DRH) released in December 2018a

Simply Wall St -

Have Insiders Been Selling DiamondRock Hospitality Company (NYSE:DRH) Shares This Year?

So before you buy or sell DiamondRock Hospitality Company (NYSE:DRH), you may well want to know whether insiders have been buying or selling. … DiamondRock Hospitality Insider Transactions Over The Last Year. … In the last year DiamondRock Hospitality insiders didn't buy any company stock

Simply Wall St -

What Do Analysts Think About The Future Of DiamondRock Hospitality Company's (NYSE:DRH)?

Based on DiamondRock Hospitality Company's (NYSE:DRH) earnings update in December 2018,. … as a 4.6% increase in profits is expected in the upcoming year, … the past 5-year average growth rate of 0.6%

Simply Wall St -

DRH Company Info

Description

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 such as Hilton and Marriott as well as unique boutique hotels in the lifestyle segment.

Details
Name: DiamondRock Hospitality Company
DRH
Exchange: NYSE
Founded: 2004
$1,889,339,220
$1,881,850,390
200,993,534
Website: http://www.drhc.com
Address: DiamondRock Hospitality Company
2 Bethesda Metro Center,
Suite 1400,
Bethesda,
Maryland, 20814,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE DRH Common Shares New York Stock Exchange US USD 26. May 2005
DB HBO Common Shares Deutsche Boerse AG DE EUR 26. May 2005
Number of employees
Current staff
Staff numbers
31
DiamondRock Hospitality employees.
Industry
Hotel and Resort REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/08/18 00:02
End of day share price update: 2019/08/16 00:00
Last estimates confirmation: 2019/08/16
Last earnings filing: 2019/08/06
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.