Diamondrock Hospitality (DRH)
Market Price (9/21/2026): $12.24 | Market Cap: $2.5 BilSector: Real Estate | Industry: Hotel & Resort REITs
Diamondrock Hospitality (DRH)
Market Price (9/21/2026): $12.24Market Cap: $2.5 BilSector: Real EstateIndustry: Hotel & Resort REITs
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 9.2%, Dividend Yield is 3.1%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 5.0%, FCF Yield is 6.5% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 21%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 14% Low stock price volatilityVol 12M is 26% Megatrend and thematic driversMegatrends include Experience Economy & Premiumization, and Sustainable & Green Buildings. Themes include Upscale Hospitality & Travel, and ESG REITs. | Weak multi-year price returns3Y Excs Rtn is -2.3% | Key risksDRH key risks include [1] a vulnerable concentration in leisure and resort markets, Show more. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 9.2%, Dividend Yield is 3.1%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 5.0%, FCF Yield is 6.5% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 21%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 14% |
| Low stock price volatilityVol 12M is 26% |
| Megatrend and thematic driversMegatrends include Experience Economy & Premiumization, and Sustainable & Green Buildings. Themes include Upscale Hospitality & Travel, and ESG REITs. |
| Weak multi-year price returns3Y Excs Rtn is -2.3% |
| Key risksDRH key risks include [1] a vulnerable concentration in leisure and resort markets, Show more. |
Qualitative Assessment
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Diamondrock Hospitality (DRH) stock has gained about 10% since 5/31/2026 because of the following key factors:
1. Diamondrock Hospitality Company reported robust fiscal Q2 2026 financial results that significantly surpassed analyst expectations. The company announced earnings per share (EPS) of $0.44, outperforming the consensus estimate of $0.22 by $0.22. Additionally, quarterly revenue rose 4.1% year-over-year to $318.29 million, exceeding analysts' expectations of $314.98 million. Comparable Revenue Per Available Room (RevPAR) also increased by 7%.
2. The company raised its full-year 2026 guidance and increased its quarterly dividend. Following the strong fiscal Q2 2026 performance, Diamondrock Hospitality now forecasts RevPAR growth of 2.5%–4%, representing a 75 basis point increase at the midpoint. Adjusted EBITDA is projected to be between $310 million and $320 million, and Adjusted Funds From Operations (FFO) per share is expected to be in the range of $1.18–$1.23. The company also demonstrated confidence in its outlook by raising its quarterly common dividend by 22% to $0.11 per share.
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Diamondrock Hospitality (DRH) stock has gained about 10% since 5/31/2026 because of the following key factors:
1. Diamondrock Hospitality Company reported robust fiscal Q2 2026 financial results that significantly surpassed analyst expectations. The company announced earnings per share (EPS) of $0.44, outperforming the consensus estimate of $0.22 by $0.22. Additionally, quarterly revenue rose 4.1% year-over-year to $318.29 million, exceeding analysts' expectations of $314.98 million. Comparable Revenue Per Available Room (RevPAR) also increased by 7%.
2. The company raised its full-year 2026 guidance and increased its quarterly dividend. Following the strong fiscal Q2 2026 performance, Diamondrock Hospitality now forecasts RevPAR growth of 2.5%–4%, representing a 75 basis point increase at the midpoint. Adjusted EBITDA is projected to be between $310 million and $320 million, and Adjusted Funds From Operations (FFO) per share is expected to be in the range of $1.18–$1.23. The company also demonstrated confidence in its outlook by raising its quarterly common dividend by 22% to $0.11 per share.
3. A favorable demand environment across the hospitality sector contributed to the positive trend. Diamondrock Hospitality experienced broad-based demand across group, transient, and leisure segments. Resorts, in particular, led with 7.9% RevPAR growth, while urban hotels saw an acceleration to nearly 10% RevPAR growth in June. This aligns with broader U.S. hotel performance, which saw an 8.2% year-over-year RevPAR growth in July 2026.
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Stock Movement Drivers
Fundamental Drivers
The 12.2% change in DRH stock from 5/31/2026 to 9/20/2026 was primarily driven by a 46.1% change in the company's Net Income Margin (%).| (LTM values as of) | 5312026 | 9202026 | Change |
|---|---|---|---|
| Stock Price ($) | 10.91 | 12.24 | 12.2% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1,124 | 1,136 | 1.1% |
| Net Income Margin (%) | 9.3% | 13.5% | 46.1% |
| P/E Multiple | 21.4 | 16.3 | -23.8% |
| Shares Outstanding (Mil) | 204 | 205 | -0.3% |
| Cumulative Contribution | 12.2% |
Market Drivers
5/31/2026 to 9/20/2026| Return | Correlation | |
|---|---|---|
| DRH | 12.2% | |
| Market (SPY) | 0.9% | 11.9% |
| Sector (XLRE) | -3.3% | 27.8% |
Fundamental Drivers
The 24.0% change in DRH stock from 2/28/2026 to 9/20/2026 was primarily driven by a 49.4% change in the company's Net Income Margin (%).| (LTM values as of) | 2282026 | 9202026 | Change |
|---|---|---|---|
| Stock Price ($) | 9.87 | 12.24 | 24.0% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1,120 | 1,136 | 1.4% |
| Net Income Margin (%) | 9.1% | 13.5% | 49.4% |
| P/E Multiple | 19.9 | 16.3 | -17.8% |
| Shares Outstanding (Mil) | 204 | 205 | -0.4% |
| Cumulative Contribution | 24.0% |
Market Drivers
2/28/2026 to 9/20/2026| Return | Correlation | |
|---|---|---|
| DRH | 24.0% | |
| Market (SPY) | 11.6% | 34.0% |
| Sector (XLRE) | -2.3% | 42.3% |
Fundamental Drivers
The 48.8% change in DRH stock from 8/31/2025 to 9/20/2026 was primarily driven by a 124.1% change in the company's Net Income Margin (%).| (LTM values as of) | 8312025 | 9202026 | Change |
|---|---|---|---|
| Stock Price ($) | 8.22 | 12.24 | 48.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1,125 | 1,136 | 1.0% |
| Net Income Margin (%) | 6.0% | 13.5% | 124.1% |
| P/E Multiple | 25.1 | 16.3 | -34.8% |
| Shares Outstanding (Mil) | 207 | 205 | 0.8% |
| Cumulative Contribution | 48.8% |
Market Drivers
8/31/2025 to 9/20/2026| Return | Correlation | |
|---|---|---|
| DRH | 48.8% | |
| Market (SPY) | 19.4% | 31.5% |
| Sector (XLRE) | 3.1% | 42.5% |
Fundamental Drivers
The 68.4% change in DRH stock from 8/31/2023 to 9/20/2026 was primarily driven by a 50.8% change in the company's Net Income Margin (%).| (LTM values as of) | 8312023 | 9202026 | Change |
|---|---|---|---|
| Stock Price ($) | 7.27 | 12.24 | 68.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 1,058 | 1,136 | 7.4% |
| Net Income Margin (%) | 9.0% | 13.5% | 50.8% |
| P/E Multiple | 16.2 | 16.3 | 0.7% |
| Shares Outstanding (Mil) | 212 | 205 | 3.2% |
| Cumulative Contribution | 68.4% |
Market Drivers
8/31/2023 to 9/20/2026| Return | Correlation | |
|---|---|---|
| DRH | 68.4% | |
| Market (SPY) | 75.6% | 55.9% |
| Sector (XLRE) | 26.2% | 51.9% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| DRH Return | 16% | -14% | 16% | -0% | 4% | 39% | 68% |
| Peers Return | 14% | -25% | 23% | 1% | -10% | 38% | 34% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 12% | 103% |
Monthly Win Rates [3] | |||||||
| DRH Win Rate | 58% | 50% | 50% | 42% | 42% | 67% | |
| Peers Win Rate | 43% | 40% | 53% | 42% | 48% | 64% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 44% | |
Max Drawdowns [4] | |||||||
| DRH Max Drawdown | -29% | -34% | -26% | -20% | -28% | -11% | |
| Peers Max Drawdown | -26% | -37% | -26% | -22% | -36% | -14% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: HST, PK, SHO, PEB, XHR.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 9/18/2026 (YTD)
How Low Can It Go
| Event | DRH | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -25.2% | -18.8% |
| % Gain to Breakeven | 33.8% | 23.1% |
| Time to Breakeven | 141 days | 79 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -22.3% | -6.7% |
| % Gain to Breakeven | 28.7% | 7.1% |
| Time to Breakeven | 273 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -24.5% | -24.5% |
| % Gain to Breakeven | 32.4% | 32.4% |
| Time to Breakeven | 123 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -79.1% | -33.7% |
| % Gain to Breakeven | 378.1% | 50.9% |
| Time to Breakeven | 357 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -24.0% | -19.2% |
| % Gain to Breakeven | 31.6% | 23.8% |
| Time to Breakeven | 359 days | 105 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -37.4% | -12.2% |
| % Gain to Breakeven | 59.6% | 13.9% |
| Time to Breakeven | 351 days | 62 days |
In The Past
Diamondrock Hospitality's stock fell -25.2% during the 2025 US Tariff Shock. Such a loss loss requires a 33.8% gain to breakeven.
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| Event | DRH | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -25.2% | -18.8% |
| % Gain to Breakeven | 33.8% | 23.1% |
| Time to Breakeven | 141 days | 79 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -22.3% | -6.7% |
| % Gain to Breakeven | 28.7% | 7.1% |
| Time to Breakeven | 273 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -24.5% | -24.5% |
| % Gain to Breakeven | 32.4% | 32.4% |
| Time to Breakeven | 123 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -79.1% | -33.7% |
| % Gain to Breakeven | 378.1% | 50.9% |
| Time to Breakeven | 357 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -24.0% | -19.2% |
| % Gain to Breakeven | 31.6% | 23.8% |
| Time to Breakeven | 359 days | 105 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -37.4% | -12.2% |
| % Gain to Breakeven | 59.6% | 13.9% |
| Time to Breakeven | 351 days | 62 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -38.2% | -6.8% |
| % Gain to Breakeven | 61.9% | 7.3% |
| Time to Breakeven | 373 days | 15 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -37.2% | -17.9% |
| % Gain to Breakeven | 59.3% | 21.8% |
| Time to Breakeven | 108 days | 123 days |
| 2010 Eurozone Sovereign Debt Crisis / Flash Crash | ||
| % Loss | -32.0% | -15.4% |
| % Gain to Breakeven | 47.1% | 18.2% |
| Time to Breakeven | 168 days | 125 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -82.8% | -53.4% |
| % Gain to Breakeven | 480.1% | 114.4% |
| Time to Breakeven | 2023 days | 1085 days |
| Summer 2007 Credit Crunch | ||
| % Loss | -22.6% | -8.6% |
| % Gain to Breakeven | 29.2% | 9.5% |
| Time to Breakeven | 2662 days | 47 days |
In The Past
Diamondrock Hospitality's stock fell -25.2% during the 2025 US Tariff Shock. Such a loss loss requires a 33.8% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Diamondrock Hospitality (DRH)
DiamondRock Hospitality (DRH) is a Real Estate Investment Trust (REIT) that specializes in owning a portfolio of premium hotel properties. As a REIT, its core business involves acquiring, owning, and strategically managing real estate assets, specifically hotels, to generate income. The company profits from the operational performance of its hotel properties, focusing on long-term value creation through its diverse real estate holdings.
The company's main products and services are premium hotel accommodations and the associated hospitality experiences. DRH currently owns 31 high-quality hotels, totaling over 10,000 rooms. These properties are strategically positioned in highly desirable locations, including top gateway markets and popular destination resort areas. DiamondRock enhances its market appeal by operating hotels under leading global brand families while also featuring unique boutique hotels within the lifestyle segment, offering a broad range of lodging options.
DiamondRock Hospitality primarily serves travelers seeking upscale accommodations, encompassing both business and leisure segments. Its customers include business travelers frequenting major urban centers and tourists vacationing in resort destinations. By operating a mix of globally branded hotels and distinctive boutique properties, DRH caters to a wide array of preferences, from guests who value the consistency of established brands to those seeking unique, experience-driven stays.
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Here are 1-3 brief analogies to describe Diamondrock Hospitality (DRH):
- Public Storage for hotels: Think of DRH as similar to Public Storage (PSA), but instead of owning a portfolio of storage units, they own a diverse portfolio of premium hotels in top locations.
- Simon Property Group for hotels: DRH is like a landlord for high-end hotels, much like Simon Property Group (SPG) is a major landlord for shopping malls, owning the valuable real estate where businesses operate.
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- Hotel Accommodations: Providing guest rooms and suites for short-term lodging at its portfolio of premium hotels.
- Hospitality Services: Offering a range of amenities and services to guests, which can include dining, event spaces, and various guest conveniences within its owned hotels.
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Diamondrock Hospitality (DRH), as an owner of a portfolio of premium hotels located in top gateway markets and destination resort locations, primarily serves a diverse base of individuals and groups who book stays at its properties. Its major customers fall into the following categories:
- Leisure Travelers: This segment includes individuals, couples, and families seeking accommodation for vacations, holidays, weekend getaways, and personal special events. These customers are particularly attracted to DRH's destination resort properties and unique boutique hotels.
- Business Travelers: This category comprises individuals traveling for corporate purposes, attending meetings, conferences, or conducting business in the strategic gateway markets where many of DRH's hotels are situated.
- Group Travelers: This segment includes organizations, event planners, and large parties booking multiple rooms for corporate events, association meetings, conventions, weddings, or other significant social gatherings.
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- Marriott International, Inc. (MAR)
- Hilton Worldwide Holdings Inc. (HLT)
- Hyatt Hotels Corporation (H)
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Jeffrey J. Donnelly, Chief Executive Officer and Director
Mr. Donnelly was appointed Chief Executive Officer and Director of DiamondRock Hospitality on April 15, 2024. He previously served as Executive Vice President and Chief Financial Officer for DiamondRock, a position he held since joining the company in August 2019. Prior to his tenure at DiamondRock, Mr. Donnelly was the Managing Director of Equity Research at Wells Fargo Securities, where he co-founded the firm's Real Estate & Lodging Equity Research Platform. During his 22-year career at Wells Fargo, he was directly responsible for over $45 billion in equity transactions. Before joining Wells Fargo, Mr. Donnelly was an Assistant Vice President at AEW Capital Management, L.P., where he managed a 15 million square foot diversified commercial real estate portfolio and executed property and capital market transactions exceeding $5 billion. He is a Chartered Financial Analyst (CFA) and Certified Management Accountant (CMA) and holds a B.B.A. in Finance from The George Washington University. Mr. Donnelly is also the Founder and Trustee of The Rubinstein-Taybi Syndrome Children's Foundation (RTSCF) and serves on the Board of Directors of Piedmont Office Realty Trust (NYSE: PDM).
Briony R. Quinn, Executive Vice President, Chief Financial Officer and Treasurer
Ms. Quinn was appointed Executive Vice President, Chief Financial Officer and Treasurer of DiamondRock Hospitality on April 15, 2024. She previously served as Senior Vice President and Treasurer of DiamondRock since March 2018. Ms. Quinn initially joined DiamondRock in 2007 as Assistant Controller and subsequently held promotions to Vice President and Corporate Controller in 2008, and Chief Accounting Officer in 2014. Before her time at DiamondRock, Ms. Quinn was the Vice President of Finance and Accounting for Meristar Hospitality Corporation, a publicly-traded lodging real estate investment trust.
Justin L. Leonard, President and Chief Operating Officer
Mr. Leonard was appointed President and Chief Operating Officer of DiamondRock Hospitality on April 15, 2024. He joined the company as Executive Vice President and Chief Operating Officer in July 2022. Prior to joining DiamondRock, Mr. Leonard spent 23 years at Walton Street Capital, most recently as a Senior Principal, where he was responsible for overseeing the firm's hotel investments. During his tenure at Walton Street, he was involved in over $3 billion in hospitality transactions and managed the asset management of 60 branded and independent hotels, totaling more than 20,000 rooms. Mr. Leonard holds a B.B.A. in Real Estate from the University of Wisconsin-Madison.
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- Macroeconomic Conditions and Hospitality Industry Cyclicality: As a hotel Real Estate Investment Trust (REIT), Diamondrock Hospitality's performance is highly sensitive to overall economic conditions. Fluctuations in macroeconomic indicators such as U.S. gross domestic product (GDP) growth, employment levels, personal discretionary spending, corporate earnings, and travel demand can significantly impact the lodging industry. A recession, high interest rates, or a decline in consumer confidence could adversely affect leisure transient travel, business travel, and international tourism, thereby reducing occupancy rates and average daily rates across DRH's portfolio. The acceleration of remote and hybrid work models also poses a persistent risk to business travel growth and future occupancy rates.
- High Leverage and Interest Rate Sensitivity: Diamondrock Hospitality faces risks associated with its debt levels and exposure to interest rate fluctuations. High debt makes the company vulnerable, particularly in an environment of rising interest rates, which can increase cash interest expenses and make refinancing more costly. While the company has taken steps to manage its debt, some analyses indicate a moderate to high debt-to-equity ratio and weak interest coverage, along with potential liquidity concerns, which could impact financial flexibility and the sustainability of its dividend policy.
- Rising Operating Costs and Intense Competition: The company is exposed to pressure on its operating margins due to elevated inflation and increasing labor costs, as well as capital requirements for cybersecurity and dynamic pricing systems. Additionally, the hospitality market is highly competitive, with a saturated landscape including major hotel brands and independent operators. Competition from alternative lodging options, such as Airbnb, and online travel intermediaries further intensifies price competition, especially during economic downturns. Diamondrock's dependence on third-party hotel management companies and franchise brands also introduces risks related to their performance and associated costs.
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- The continued evolution and expansion of alternative accommodation providers, such as short-term rental platforms like Airbnb, which directly compete with traditional hotels for leisure travelers and destination resort stays.
- Fundamental shifts in business travel patterns resulting from the widespread adoption of remote and hybrid work models, potentially leading to a structural decline in demand for premium hotels in top gateway markets that historically rely on corporate travel.
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The addressable market for Diamondrock Hospitality (DRH) is primarily the hotel and resort market within the United States, given its portfolio of premium hotels and resorts concentrated in top gateway markets and destination resort locations across the country.
The overall U.S. hotels market was estimated at USD 263.21 billion in 2024 and is projected to reach approximately USD 395.79 billion by 2030, growing at a compound annual growth rate (CAGR) of 7.10% from 2025 to 2030. More specifically for the segments Diamondrock Hospitality focuses on:
- The U.S. resort market is projected to be valued at approximately USD 51.5 billion in 2025, with an expected growth to USD 233.6 billion by 2034 at a CAGR of 18.3%.
- The U.S. luxury hotel market size was valued at approximately USD 28.59 billion in 2025 and is projected to reach USD 45.43 billion by 2034, exhibiting a CAGR of 5.28% from 2026 to 2034.
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Expected Drivers of Future Revenue Growth for Diamondrock Hospitality (DRH)
Diamondrock Hospitality (DRH) anticipates several key drivers for revenue growth over the next two to three years, primarily stemming from improved operational metrics, strategic capital deployment, and a focus on high-demand segments:
1. Growth in Comparable Total RevPAR, including Out-of-Room Revenues: Diamondrock Hospitality expects continued growth in Comparable Total Revenue Per Available Room (RevPAR), which encompasses both room and ancillary revenues. For the full year 2025, comparable total RevPAR grew 1.2%. The company projects 1% to 3% RevPAR growth for 2026, with total RevPAR growth expected to be 25 basis points higher. This growth is notably supported by increased out-of-room spending, particularly within its resort portfolio, where out-of-room revenue per occupied room increased by nearly 7% in the fourth quarter of 2025.
2. Strong Performance and Expansion of Group Business: The company identifies its group segment as a significant contributor to revenue growth. In the fourth quarter of 2024, Group room revenues increased by 8.1% over the prior year. Furthermore, Diamondrock's group pace for 2025 showed improvement, with group revenue up approximately 2%. The company had 85% of its budgeted full-year group revenue on the books by the end of Q1 2024, representing a 14% increase over the same period in 2023, indicating a robust pipeline for future group bookings.
3. Benefits from Strategic Property Repositioning and Renovations: Diamondrock Hospitality continues to invest in its portfolio through strategic redevelopment and repositioning projects aimed at enhancing asset value and driving higher returns. An example is the repositioning of the Orchards Inn in Sedona, which is being integrated with L'Auberge de Sedona as The Cliffs at L'Auberge, with completion expected in late 2025. Such projects are anticipated to deliver significant year-over-year improvement in performance upon completion. Additionally, the company completed the rebranding of the Hilton Burlington Lake Champlain to the Hotel Champlain Burlington, Curio Collection by Hilton in July 2024.
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Share Repurchases
- In 2025, Diamondrock Hospitality repurchased 4.8 million shares of its common stock for a total of $37.1 million.
- In 2024, the company repurchased 3.1 million shares of its common stock for a total of $26.0 million.
- As of December 31, 2025, the company had $137.0 million of remaining capacity under its $200.0 million share repurchase program.
Share Issuance
- No significant common share issuances were identified over the last 3-5 years. The company redeemed all 4.76 million outstanding shares of its 8.25% Series A Cumulative Redeemable Preferred Stock for approximately $121.5 million on December 31, 2025.
Capital Expenditures
- Diamondrock Hospitality invested approximately $81.6 million in capital improvements at its hotels during 2025.
- Expected capital expenditures for 2026 are approximately $80 million to $90 million.
- The primary focus of these capital expenditures includes significant renovation projects, such as the completion of guestroom renovations at the Kimpton Hotel Palomar Phoenix in 2025 and planned guestroom renovations for the Courtyard New York Manhattan/Midtown East and Henderson Park Inn in 2026.
Peer Outperformance in Hotel & Resort REITs
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Health Care REITs | 15 | 17.4% | 59.5% | 59.7% | WELL 200% · DHC 153% · CTRE 123% |
| Retail REITs | 22 | 7.8% | 34.8% | 33.0% | IVT 1505% · SKT 161% · SPG 105% |
| Real Estate Development | 6 | -21.0% | 17.4% | 18.5% | JOE 59% · AXR 55% · FOR 37% |
| Other Specialized REITs | 11 | 5.3% | 20.9% | 16.6% | IRM 211% · EPR 64% · OUT 64% |
| Hotel & Resort REITs ← | 16 | 29.1% | 33.3% | 7.2% | HST 71% · RHP 71% · DRH 53% |
| Industrial REITs | 11 | 11.7% | 24.4% | 4.0% | EGP 38% · FR 33% · PLD 21% |
| Diversified REITs | 12 | 8.3% | 30.9% | -5.8% | CTO 71% · LXP 18% · WPC 18% |
| Single-Family Residential REITs | 4 | -5.2% | -1.1% | -18.4% | AMH -10% · ELS -16% · INVH -21% |
| Multi-Family Residential REITs | 13 | -7.6% | 4.0% | -21.5% | AIV 6% · ESS 0% · BRT -6% |
| Real Estate Services | 27 | -23.0% | -2.3% | -26.0% | REAX 798% · MDRR 580% · CHCI 322% |
| Office REITs | 18 | -12.7% | 21.9% | -31.6% | PSTL 70% · CDP 56% · SLG 6% |
| Telecom Tower REITs | 3 | -8.0% | -7.2% | -45.2% | AMT -30% · SBAC -45% · CCI -50% |
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Peer Comparisons
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Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 16.36 |
| Mkt Cap | 2.3 |
| Rev LTM | 1,318 |
| Op Inc LTM | 147 |
| FCF LTM | 181 |
| FCF 3Y Avg | 167 |
| CFO LTM | 262 |
| CFO 3Y Avg | 251 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 1.9% |
| Rev Chg 3Y Avg | 1.6% |
| Rev Chg Q | 3.1% |
| QoQ Delta Rev Chg LTM | 0.8% |
| Op Inc Chg LTM | 18.0% |
| Op Inc Chg 3Y Avg | 2.9% |
| Op Mgn LTM | 11.1% |
| Op Mgn 3Y Avg | 10.4% |
| QoQ Delta Op Mgn LTM | 0.5% |
| CFO/Rev LTM | 19.2% |
| CFO/Rev 3Y Avg | 18.8% |
| FCF/Rev LTM | 15.4% |
| FCF/Rev 3Y Avg | 13.5% |
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Hotel ownership | 1,120 | 1,130 | 1,075 | 1,002 | |
| All other | 50 | ||||
| Food and beverage | 118 | ||||
| Rooms | 399 | ||||
| Total | 1,120 | 1,130 | 1,075 | 1,002 | 567 |
| $ Mil | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|
| Hotel ownership | 102 | 48 | 87 | 110 |
| Total | 102 | 48 | 87 | 110 |
| $ Mil | 2025 | 2024 |
|---|---|---|
| Hotel ownership | 2,909 | 3,064 |
| All other | 95 | 108 |
| Total | 3,004 | 3,172 |
Price Behavior
| Market Price | $12.24 | |
| Market Cap ($ Bil) | 2.5 | |
| First Trading Date | 05/26/2005 | |
| Distance from 52W High | -8.5% | |
| 50 Days | 200 Days | |
| DMA Price | $12.52 | $10.62 |
| DMA Trend | up | up |
| Distance from DMA | -2.2% | 15.3% |
| 3M | 1YR | |
| Volatility | 23.5% | 25.8% |
| Downside Capture | 83.29 | 50.48 |
| Upside Capture | 75.32 | 92.07 |
| Correlation (SPY) | 9.2% | 32.0% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 0.47 | 0.26 | 0.21 | 0.63 | 0.66 | 1.01 |
| Up Beta | -0.19 | -0.77 | -0.69 | 0.20 | 0.51 | 1.15 |
| Down Beta | -4.40 | -1.14 | -0.66 | 0.37 | 0.58 | 0.89 |
| Up Capture | 58% | 106% | 116% | 103% | 87% | 94% |
| Bmk +ve Days | 10 | 21 | 32 | 68 | 138 | 427 |
| Stock +ve Days | 11 | 24 | 38 | 72 | 133 | 375 |
| Down Capture | 286% | 104% | 63% | 77% | 64% | 100% |
| Bmk -ve Days | 11 | 21 | 32 | 59 | 113 | 324 |
| Stock -ve Days | 9 | 16 | 22 | 51 | 108 | 351 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with DRH | |
|---|---|---|---|---|
| DRH | 57.0% | 25.9% | 1.70 | - |
| Sector ETF (XLRE) | 3.8% | 14.0% | 0.03 | 42.8% |
| Equity (SPY) | 16.9% | 12.9% | 0.94 | 31.9% |
| Gold (GLD) | 19.1% | 29.3% | 0.60 | 10.8% |
| Commodities (DBC) | 46.3% | 20.6% | 1.73 | -18.6% |
| Real Estate (VNQ) | 4.9% | 13.6% | 0.10 | 46.9% |
| Bitcoin (BTCUSD) | -30.6% | 44.3% | -0.70 | 13.4% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with DRH | |
|---|---|---|---|---|
| DRH | 10.0% | 32.5% | 0.34 | - |
| Sector ETF (XLRE) | 1.2% | 19.1% | -0.04 | 54.2% |
| Equity (SPY) | 12.9% | 17.2% | 0.57 | 60.9% |
| Gold (GLD) | 19.1% | 18.8% | 0.83 | 6.7% |
| Commodities (DBC) | 11.2% | 19.5% | 0.45 | 12.3% |
| Real Estate (VNQ) | 1.1% | 18.8% | -0.05 | 59.3% |
| Bitcoin (BTCUSD) | 12.5% | 52.5% | 0.42 | 27.9% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with DRH | |
|---|---|---|---|---|
| DRH | 5.3% | 46.5% | 0.28 | - |
| Sector ETF (XLRE) | 5.8% | 20.4% | 0.24 | 45.8% |
| Equity (SPY) | 15.1% | 18.0% | 0.72 | 48.4% |
| Gold (GLD) | 12.1% | 16.4% | 0.61 | -0.4% |
| Commodities (DBC) | 8.3% | 18.1% | 0.37 | 21.2% |
| Real Estate (VNQ) | 4.4% | 20.7% | 0.18 | 53.7% |
| Bitcoin (BTCUSD) | 62.6% | 66.2% | 1.02 | 18.2% |
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Returns Analyses
Earnings Returns History
Updated 9/10/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 7/30/2026 | 2.6% | -2.1% | -1.6% |
| 4/30/2026 | 2.6% | 4.5% | 7.7% |
| 2/26/2026 | -2.8% | -4.1% | -9.8% |
| 11/6/2025 | 9.1% | 9.3% | 6.9% |
| 8/7/2025 | -1.4% | 3.6% | 10.0% |
| 5/1/2025 | 3.0% | 1.4% | 2.4% |
| 2/27/2025 | 0.7% | 0.4% | -5.5% |
| 11/7/2024 | 0.1% | -2.3% | 4.1% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 18 | 13 | 15 |
| # Negative | 6 | 11 | 9 |
| Median Positive | 1.5% | 3.3% | 6.9% |
| Median Negative | -3.8% | -2.9% | -5.5% |
| Max Positive | 9.1% | 16.5% | 64.3% |
| Max Negative | -8.4% | -5.4% | -10.1% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 7/30/2026 | 2.6% | -2.1% | -1.6% |
| 4/30/2026 | 2.6% | 4.5% | 7.7% |
| 2/26/2026 | -2.8% | -4.1% | -9.8% |
| 11/6/2025 | 9.1% | 9.3% | 6.9% |
| 8/7/2025 | -1.4% | 3.6% | 10.0% |
| 5/1/2025 | 3.0% | 1.4% | 2.4% |
| 2/27/2025 | 0.7% | 0.4% | -5.5% |
| 11/7/2024 | 0.1% | -2.3% | 4.1% |
| 8/1/2024 | 0.0% | -0.1% | 8.7% |
| 5/2/2024 | 0.7% | -2.9% | -2.5% |
| 2/22/2024 | -0.2% | 0.5% | 2.5% |
| 11/1/2023 | 0.5% | 7.2% | 7.6% |
| 8/7/2023 | 2.4% | -1.5% | 0.8% |
| 5/4/2023 | 0.7% | -3.9% | -2.1% |
| 2/21/2023 | 0.1% | 0.8% | -9.5% |
| 11/3/2022 | 0.2% | 4.1% | 3.7% |
| 8/3/2022 | 0.3% | 3.3% | -6.6% |
| 5/5/2022 | 2.3% | -5.4% | 7.8% |
| 2/17/2022 | -4.9% | -5.4% | -4.9% |
| 11/4/2021 | 2.9% | 0.5% | -10.1% |
| 8/5/2021 | 5.9% | 1.9% | 3.1% |
| 5/6/2021 | 3.9% | -1.3% | 7.5% |
| 2/24/2021 | -8.4% | -4.0% | 3.1% |
| 11/5/2020 | -5.4% | 16.5% | 64.3% |
| SUMMARY STATS | |||
| # Positive | 18 | 13 | 15 |
| # Negative | 6 | 11 | 9 |
| Median Positive | 1.5% | 3.3% | 6.9% |
| Median Negative | -3.8% | -2.9% | -5.5% |
| Max Positive | 9.1% | 16.5% | 64.3% |
| Max Negative | -8.4% | -5.4% | -10.1% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 07/30/2026 | 10-Q |
| 03/31/2026 | 04/30/2026 | 10-Q |
| 12/31/2025 | 02/27/2026 | 10-K |
| 09/30/2025 | 11/07/2025 | 10-Q |
| 06/30/2025 | 08/08/2025 | 10-Q |
| 03/31/2025 | 05/02/2025 | 10-Q |
| 12/31/2024 | 02/28/2025 | 10-K |
| 09/30/2024 | 11/08/2024 | 10-Q |
| 06/30/2024 | 08/02/2024 | 10-Q |
| 03/31/2024 | 05/03/2024 | 10-Q |
| 12/31/2023 | 02/28/2024 | 10-K |
| 09/30/2023 | 11/03/2023 | 10-Q |
| 06/30/2023 | 08/04/2023 | 10-Q |
| 03/31/2023 | 05/05/2023 | 10-Q |
| 12/31/2022 | 02/24/2023 | 10-K |
| 09/30/2022 | 11/04/2022 | 10-Q |
| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 07/30/2026 | 10-Q |
| 03/31/2026 | 04/30/2026 | 10-Q |
| 12/31/2025 | 02/27/2026 | 10-K |
| 09/30/2025 | 11/07/2025 | 10-Q |
| 06/30/2025 | 08/08/2025 | 10-Q |
| 03/31/2025 | 05/02/2025 | 10-Q |
| 12/31/2024 | 02/28/2025 | 10-K |
| 09/30/2024 | 11/08/2024 | 10-Q |
| 06/30/2024 | 08/02/2024 | 10-Q |
| 03/31/2024 | 05/03/2024 | 10-Q |
| 12/31/2023 | 02/28/2024 | 10-K |
| 09/30/2023 | 11/03/2023 | 10-Q |
| 06/30/2023 | 08/04/2023 | 10-Q |
| 03/31/2023 | 05/05/2023 | 10-Q |
| 12/31/2022 | 02/24/2023 | 10-K |
| 09/30/2022 | 11/04/2022 | 10-Q |
| 06/30/2022 | 08/04/2022 | 10-Q |
| 03/31/2022 | 05/06/2022 | 10-Q |
| 12/31/2021 | 02/22/2022 | 10-K |
| 09/30/2021 | 11/05/2021 | 10-Q |
| 06/30/2021 | 08/05/2021 | 10-Q |
| 03/31/2021 | 05/07/2021 | 10-Q |
| 12/31/2020 | 03/01/2021 | 10-K |
| 09/30/2020 | 11/06/2020 | 10-Q |
| 06/30/2020 | 08/10/2020 | 10-Q |
| 03/31/2020 | 05/11/2020 | 10-Q |
| 12/31/2019 | 02/28/2020 | 10-K |
| 09/30/2019 | 11/08/2019 | 10-Q |
Recent Forward Guidance
Updated 7/31/2026Latest: Q2 2026 Earnings Reported 7/30/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Comparable RevPAR Growth | Reported | 2.5% | 3.25% | 4.0% | 0.8% | Raised | Guidance: 2.5% for 2026 | |
| 2026 Comparable Total RevPAR Growth | Reported | 2.75% | 3.5% | 4.25% | 0.8% | Raised | Guidance: 2.75% for 2026 | |
| 2026 Adjusted FFO | Reported | 245.50 Mil | 250.50 Mil | 255.50 Mil | 4.6% | Raised | Guidance: 239.50 Mil for 2026 | |
| 2026 Adjusted FFO per share | Reported | 1.18 | 1.21 | 1.23 | 4.8% | Raised | Guidance: 1.15 for 2026 | |
| 2026 Adjusted EBITDA | Reported | 310.00 Mil | 315.00 Mil | 320.00 Mil | 4.3% | Raised | Guidance: 302.00 Mil for 2026 | |
Prior: Q1 2026 Earnings Reported 4/30/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Comparable RevPAR Growth | Reported | 1.5% | 2.5% | 3.5% | 0.5% | Raised | Guidance: 2.0% for 2026 | |
| 2026 Comparable Total RevPAR Growth | Reported | 1.75% | 2.75% | 3.75% | 0.5% | Raised | Guidance: 2.25% for 2026 | |
| 2026 Adjusted FFO | Reported | 233.50 Mil | 239.50 Mil | 245.50 Mil | 2.1% | Raised | Guidance: 234.50 Mil for 2026 | |
| 2026 Adjusted FFO per share | Reported | 1.12 | 1.15 | 1.18 | 2.2% | Raised | Guidance: 1.12 for 2026 | |
| 2026 Adjusted EBITDA | Reported | 296.00 Mil | 302.00 Mil | 308.00 Mil | 2.5% | Raised | Guidance: 294.50 Mil for 2026 | |
Q4 2025 Earnings Reported 2/26/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Comparable RevPAR Growth | Reported | 1.0% | 2.0% | 3.0% | 2.0% | Higher New | Guidance: 0.0% for 2025 | |
| 2026 Comparable Total RevPAR Growth | Reported | 1.25% | 2.25% | 3.25% | 1.8% | Higher New | Guidance: 0.5% for 2025 | |
| 2026 Adjusted FFO | Reported | 227.00 Mil | 234.50 Mil | 242.00 Mil | 8.1% | Higher New | Guidance: 217.00 Mil for 2025 | |
| 2026 Adjusted FFO per share | Reported | 1.09 | 1.12 | 1.16 | 8.2% | Higher New | Guidance: 1.04 for 2025 | |
| 2026 Adjusted EBITDA | Reported | 287.00 Mil | 294.50 Mil | 302.00 Mil | 1.2% | Higher New | Guidance: 291.00 Mil for 2025 | |
Q3 2025 Earnings Reported 11/6/2025
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2025 Comparable RevPAR Growth | Reported | -0.5% | 0.0% | 0.5% | 0.0% | Affirmed | Guidance: 0.0% for 2025 | |
| 2025 Comparable Total RevPAR Growth | Reported | 0.0% | 0.5% | 1.0% | 0.0% | Affirmed | Guidance: 0.5% for 2025 | |
| 2025 Adjusted FFO | Reported | 213.00 Mil | 217.00 Mil | 221.00 Mil | 3.1% | Raised | Guidance: 210.50 Mil for 2025 | |
| 2025 Adjusted FFO per share | Reported | 1.02 | 1.04 | 1.06 | 3.0% | Raised | Guidance: 1.01 for 2025 | |
| 2025 Corporate Expenses | Reported | 24.00 Mil | 24.50 Mil | 25.00 Mil | ||||
| 2025 Adjusted EBITDA | Reported | 287.00 Mil | 291.00 Mil | 295.00 Mil | 2.1% | Raised | Guidance: 285.00 Mil for 2025 | |
| 2025 Cash Interest Expense | Reported | 62.00 Mil | 62.50 Mil | 63.00 Mil | ||||
Insider Activity
Updated 7/15/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Lepori, Stephanie | Direct | Buy | 7152026 | 12.08 | 111 | 1,346 | 312,038 | Form | |
| 2 | Lepori, Stephanie | Direct | Buy | 7152026 | 10.17 | 131 | 1,335 | 261,568 | Form | |
| 3 | Lepori, Stephanie | Direct | Buy | 7152026 | 9.26 | 188 | 1,740 | 236,913 | Form | |
| 4 | Lepori, Stephanie | Direct | Buy | 7152026 | 7.51 | 154 | 1,159 | 190,757 | Form | |
| 5 | Merrill, Kathleen | Direct | Sell | 6162026 | 11.88 | 20,000 | 237,600 | 1,001,900 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Lepori, Stephanie | Direct | Buy | 7152026 | 12.08 | 111 | 1,346 | 312,038 | Form | |
| 2 | Lepori, Stephanie | Direct | Buy | 7152026 | 10.17 | 131 | 1,335 | 261,568 | Form | |
| 3 | Lepori, Stephanie | Direct | Buy | 7152026 | 9.26 | 188 | 1,740 | 236,913 | Form | |
| 4 | Lepori, Stephanie | Direct | Buy | 7152026 | 7.51 | 154 | 1,159 | 190,757 | Form | |
| 5 | Merrill, Kathleen | Direct | Sell | 6162026 | 11.88 | 20,000 | 237,600 | 1,001,900 | Form | |
| 6 | Hartmeier, Michael A | Direct | Sell | 5132026 | 10.46 | 20,000 | 209,200 | 997,403 | Form | |
| 7 | Spierto, Steve | SVP, Chief Accounting Officer | Direct | Sell | 3042026 | 9.93 | 4,000 | 39,720 | 774,312 | Form |
Investor Activity (13F)
Updated Sep 21, 2026Active managers (13F portfolio over $250M, at least 3 holdings) with a position over $5M that is either over 10% of their portfolio or held in a concentrated book of 50 or fewer total positions. Index/ETF, sovereign, bank, community-bank and charitable/donor-advised filers are excluded.
| Active Manager |
|---|
Industry Resources
| Real Estate Resources |
| The Real Deal |
| Commercial Observer |
| Inman |
| Hotel & Resort REITs Resources |
| Hotel News Now |
| Hospitality Net |
| Lodging Magazine |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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