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Diamondrock Hospitality Company (DRH) Stock Analysis

HoldHigh Confidence

Real Estate · REIT - Hotel & Motel

Hold if already holding. Not a fresh buy at $10.61, but acceptable to hold if already in. Reasons: Concentration risk — Geographic: major metropolitan market hotels (71.0%); Analyst target reached - limited upside remaining.

DiamondRock Hospitality is a self-managed hotel REIT owning 35 premium hotels with 9,595 rooms across 26 U.S. markets, primarily luxury and upper-upscale urban and destination resort properties. Revenue is earned through hotel operations managed by third-party operators under... Read more

$10.61+0.7% A.UpsideScore 5.2/10#4 of 9 REIT - Hotel & Motel
QualityF-score7 / 9FCF yield4.51%
IncomeYield3.39%(5y avg 4.88%)Payout71.74%
Stop $10.05Target $10.68(resistance)A.R:R -1.4:1
Analyst target$11.30+6.5%13 analysts
$10.68our TP
$10.61price
$11.30mean
$10
$13

Hold if already holding. Not a fresh buy at $10.61, but acceptable to hold if already in. Reasons: Concentration risk — Geographic: major metropolitan market hotels (71.0%); Analyst target reached - limited upside remaining. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Multiple concerning factors. Consider reducing position. | News modifier +2 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Score 5.2/10, high confidence.

Passes 5/7 gates (clean insider activity, no SEC red flags, earnings proximity 79d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.

Val5.4Qual4.8Grw6.4Mom4.1Sent6.4Ins5.0Peer4.2Tech5.1Risk3.95.2OVERALL

Recent Developments — Diamondrock Hospitality Company

Latest news

Generated 2026-05-20T20:21:21Z.

Thesis

Rewards
Strong earnings beat streak (3/4)
Positive news sentiment (+0.67)
Risks
Concentration risk — Geographic: major metropolitan market hotels (71.0%)
Analyst target reached - limited upside remaining
Near 52-week high (2.7% away)

Key Metrics

P/E (TTM)23.1
P/E (Fwd)19.3
Mkt Cap$2.2B
EV/EBITDA11.8
Profit Mgn9.3%
ROE6.9%
Rev Growth1.3%
Beta1.01
Dividend3.39%
Rating analysts18

Quality Signals

Piotroski F7/9

Options Flow

P/C4.00bearish
IV76%elevated

Concentration Risks(10-K Item 1A)

  • HIGHGeographicmajor metropolitan market hotels71%
    10-K Item 1A: 'Several of our hotels are in major metropolitan markets that have been, or may be, targets of terrorist attacks or active shooter incidents. These hotels constitute 71% of our total revenues in 2025.'

Material Events(8-K, last 90d)

  • 2026-02-25Item 5.02LOW
    Board Chairman William W. McCarten retiring from Board at end of current term (April 29, 2026 annual meeting); not standing for re-election. Bruce D. Wardinski to become non-executive Chairman. No disagreement cited.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

10 dimensions · all in-band

GatesMomentum 4.1<4.5A.R:R -1.4=NEGATIVEInsider activity: OKNo SEC red flagsEARNINGS PROXIMITY 79d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Aggressive
RSI
59 · Neutral
↑ 20D MA↑ 50D MA↑ 200D MAGOLDEN CROSSSupport $10.03Resistance $10.90

Price Targets

$10
$11
A.Upside+0.7%
A.R:R-1.4:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! Target reached (-7.4% upside)
! NEWS_MOD=+2: SELL_IF_HOLDING → HOLD_IF_HOLDING
! Momentum score 4.1/10 — below 4.5 minimum

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-08-06 (79d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is DRH stock a buy right now?

Hold if already holding. Not a fresh buy at $10.61, but acceptable to hold if already in. Reasons: Concentration risk — Geographic: major metropolitan market hotels (71.0%); Analyst target reached - limited upside remaining. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Multiple concerning factors. Consider reducing position. | News modifier +2 (SELL_IF_HOLDING → HOLD_IF_HOLDING) Target $10.68 (+0.7%), stop $10.05 (−5.6%), A.R:R -1.4:1. Score 5.2/10, high confidence.

What is the DRH stock price target?

Take-profit target: $10.68 (+0.7% upside). Target $10.68 (+0.7%), stop $10.05 (−5.6%), A.R:R -1.4:1. Stop-loss: $10.05.

What are the risks of investing in DRH?

Concentration risk — Geographic: major metropolitan market hotels (71.0%); Analyst target reached - limited upside remaining; Near 52-week high (2.7% away).

Is DRH overvalued or undervalued?

Diamondrock Hospitality Company trades at a P/E of 23.1 (forward 19.3). TrendMatrix value score: 5.4/10. Verdict: Hold.

What do analysts say about DRH?

18 analysts cover DRH with a consensus score of 3.9/5. Average price target: $11.

What does Diamondrock Hospitality Company do?DiamondRock Hospitality is a self-managed hotel REIT owning 35 premium hotels with 9,595 rooms across 26 U.S. markets,...

DiamondRock Hospitality is a self-managed hotel REIT owning 35 premium hotels with 9,595 rooms across 26 U.S. markets, primarily luxury and upper-upscale urban and destination resort properties. Revenue is earned through hotel operations managed by third-party operators under Marriott, Hilton, IHG, or independent brands.

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