# DiamondRock Hospitality Company (DRH)

> Source: Nexqual · https://nexqual.com/DRH · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, DiamondRock Hospitality Company (DRH), nexqual.com/DRH" · informational, not investment advice.

**Price:** USD 13.89 (-0.36% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 13.94 · day 13.69–14.04 · 52w 7.58–14.05 · market cap $2.85B · NMS

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $1.14B, net income $154M (13.5% margin), free cash flow $163M (SEC filings).
- Valuation: P/E 18.6x (avg 27.1x at the last 3 fiscal year-ends), net debt $993M.
- Earnings quality: non-operating income -$46.2M vs operating income null over the last four quarters; P/E excluding non-operating income ≈14.3x (estimate: non-operating income taxed at the company's 0.2% effective rate).
- 1 of 80 tracked superinvestors hold DRH (13F, Q2 2026): 0 new, 0 added, 1 reduced, 0 unchanged.
- Insider open-market sales, last ~7 months: 2 Form 4 filings, $447K; 2 not under a Rule 10b5-1 plan ($447K); 0 by opportunistic insiders, 0 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Analysts: Hold (mean 2.50 on a 1–5 scale) (14 analysts), mean target USD 14.04 (range 12–16).
- Total return with dividends: 1Y +84.9% vs S&P 500 +14.9%; 5Y +69.9% vs S&P 500 +80.3%.
- Next earnings: 2026-11-03, EPS estimate USD 0.14, revenue estimate $290M.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $567M | $1.00B | $1.07B | $1.13B | $1.12B | $1.14B |
| Net income | -$195M | $109M | $86.3M | $48.0M | $101M | $154M |
| EPS (diluted) | -$0.96 | $0.47 | $0.36 | $0.18 | $0.44 | — |
| Free cash flow | — | $139M | $151M | $143M | $162M | $163M |
| Net margin | -34.3% | 10.9% | 8.0% | 4.3% | 9.1% | 13.5% |
| Revenue growth | +89.4% | +76.6% | +7.3% | +5.1% | -0.8% | — |
| Cash + short-term investments | $38.6M | $67.6M | $122M | $81.4M | $68.1M | — |
| Total debt | $1.07B | $1.19B | $1.18B | $1.10B | $1.10B | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/E 18.6x · P/E ex non-operating (est.) ≈14.3x · P/S 2.5x · EV/Sales 3.4x · P/FCF 17.4x · P/B 1.9x · FCF yield 5.73% · Earnings yield 5.39% · Dividend yield (paid, TTM) 2.69% · Buyback yield (TTM) 0.54% · Net debt $993M · EV $3.84B
P/E at fiscal year-ends: Dec 2025 18.4x, Dec 2024 39.7x, Dec 2023 23.1x.

## Superinvestors (SEC 13F-HR, Q2 2026)
1 of 80 tracked investors hold DRH. Each row is the investor's latest 13F; change is vs their prior-quarter share count.
| Investor | Firm | % of portfolio | Value | Change |
|---|---|---|---|---|
| Richard Pzena | Pzena Investment Management | 0.10% | $34.5M | Reduced -0.2% |

## Insider sales (SEC Form 4, open-market, last ~7 months)
0 of 2 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-06-12 | Merrill Kathleen | Director | 20,000 | $238K | 19.2% | No | Too little history (no open-market trades in 2023–2025) |
| 2026-05-13 | Hartmeier Michael A. | Director | 20,000 | $209K | 17.3% | No | Too little history (no open-market trades in 2023–2025) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Analysts
Consensus Hold (mean 2.50 on a 1–5 scale), 14 analysts; mean target USD 14.04 (low 12, high 16).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-12 | Morgan Stanley | Target raised | Equal-Weight | $11 → $12 |
| 2026-09-10 | Truist Securities | Target raised | Buy | $12 → $15 |
| 2026-08-27 | Barclays | Target raised | Equal-Weight | $12 → $14 |
| 2026-08-19 | Evercore ISI Group | Target raised | In-Line | $13 → $14 |
| 2026-08-18 | Morgan Stanley | Target raised | Equal-Weight | $10 → $11 |
| 2026-07-31 | Stifel | Target raised | Hold | $12.5 → $13.25 |
| 2026-07-28 | Evercore ISI Group | Target raised | In-Line | $12 → $13 |
| 2026-07-23 | Wells Fargo | Target raised | Equal-Weight | $12 → $13 |
| 2026-07-22 | Citigroup | Target raised | Neutral | $11 → $13 |
| 2026-07-20 | B of A Securities | Target raised | Buy | $12.5 → $13 |
| 2026-07-17 | Morgan Stanley | Target raised | Equal-Weight | $9.6 → $10 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | +84.9% | +69.9% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +85.3% | +11.2% |
| Volatility (annualized) | 25.9% | 31.3% |
| Max drawdown | -10.8% (Feb 2026→Mar 2026) | -29.5% (Apr 2022→Mar 2023) |

## Peers (REIT - Hotel & Motel)
PK (Park Hotels & Resorts Inc.) USD 16.66 -1.94% · SHO (Sunstone Hotel Investors, Inc. ) USD 12.6 -0.08% · PEB (Pebblebrook Hotel Trust) USD 20.67 -2.04% · XHR (Xenia Hotels & Resorts, Inc.) USD 19.5 -0.66% · APLE (Apple Hospitality REIT, Inc.) USD 18.16 +0.06% · RLJ (RLJ Lodging Trust) USD 12.14 -1.30%

## More
Full page: https://nexqual.com/DRH · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Revenue by product line (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Rooms | $207.7M | 65.2% | +4.8% |
| Food and beverage | $80.8M | 25.4% | +2.5% |
| Other | $29.8M | 9.4% | +4.1% |
| Total revenue | $318.3M | 100% | — |

## Customer concentration

Period ended 2025-12-31: 11% of revenue from unnamed direct customers (10-K, filed 2026-02-27).

## Company outlook (8-K filed 2026-07-30)

- "Full-Year Guidance and Increases Quarterly Common Dividend BETHESDA, Maryland, Thursday, July 30, 2026 – DiamondRock Hospitality Company (Nasdaq: DRH, the "Company"), a lodging real estate investment trust that owns a portfolio of 34 premium hotels and resorts in the United States, today announced results of operations for the quarter ended June 30, 2026."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $0.14 | $0.14 | -3.4% | $290.0M | 1 |
| Next quarter (ends 2026-12-31) | $0.12 | $0.12 | +2.7% | $279.2M | 5 |
| Current fiscal year (ends 2026-12-31) | $0.78 | $0.55 | +41.7% | $1.15B | 5 |
| Next fiscal year (ends 2027-12-31) | $0.63 | $0.56 | +12.5% | $1.17B | 2 |