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Diamondrock Hospitality Company (DRH) Stock Analysis

Range Bound setup

Buy WaitVALUE-TRAP 1/5Moderate Confidence

Real Estate · REIT - Hotel & Motel

Earnings in 0 days (2026-04-30). Expect elevated volatility around the report — consider waiting for post-earnings price action before new entries.

Wait for pullback to $9.31. BUY gates pass at $10.37, but concentration risk — Property Type: hotels and concentration risk — Geographic: major metropolitan markets (71.0%) argue for a more patient entry. Engine's entry $9.31 (Support Atr Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum.

DiamondRock Hospitality is a self-managed lodging REIT owning 35 premium hotels and resorts with 9,595 rooms across 26 U.S. markets. Revenue flows through TRS lessees from third-party-managed hotels; over 97% of 2025 revenues were from core urban and destination resort hotels.... Read more

$10.37+11.4% A.UpsideScore 5.3/10#4 of 9 REIT - Hotel & Motel
Entry $9.31(Support Atr Sticky)Stop $8.87Target $10.42(resistance)A.R:R -0.8:1Setup A.R:R 2.7:1
Analyst target$10.90+5.1%13 analysts
$10.42our TP
$10.37price
$10.90mean
$10
$13

Wait for pullback to $9.31. BUY gates pass at $10.37, but concentration risk — Property Type: hotels and concentration risk — Geographic: major metropolitan markets (71.0%) argue for a more patient entry. Engine's entry $9.31 (Support Atr Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Chart setup: RSI 57 mid-range, Bollinger mid-band. Earnings in 0 days. Wait until post-earnings. Score 5.3/10, moderate confidence.

Passes 4/6 gates (positive momentum, clean insider activity, no SEC red flags, semi cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 0d<=7d. Suitability: aggressive.

Thesis

Rewards
No bull case signals
Risks
Concentration risk — Property Type: hotels
Concentration risk — Geographic: major metropolitan markets (71.0%)
Analyst target reached - limited upside remaining

Key Metrics

P/E (TTM)23.3
P/E (Fwd)18.5
Mkt Cap$2.1B
EV/EBITDA11.7
Profit Mgn9.1%
ROE6.7%
Rev Growth-1.6%
Beta1.01
Dividend3.51%
Rating analysts17

Quality Signals

Piotroski F6/9

Options Flow

P/C0.42bullish
IV104%elevated

Concentration Risks(10-K Item 1A)

  • HIGHPropertyhotels
    10-K Item 1A: 'We own hotels, which may be a more volatile asset class than those owned by other REITs'
  • HIGHGeographicmajor metropolitan markets71%
    10-K Item 1A: 'several of our hotels are in major metropolitan markets...These hotels constitute 71% of our total revenues in 2025'

Material Events(8-K, last 90d)

  • 2026-02-25Item 5.02LOW
    Chairman William McCarten announced he will retire and not stand for reelection at the April 29, 2026 Annual Meeting. Bruce Wardinski named incoming 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

GatesA.R:R -0.8=NEGATIVEEARNINGS PROXIMITY 0d<=7dMomentum 5.7>=5.5Insider activity: OKNo SEC red flagsSEMI CYCLE PEAK CLEARRange BoundSuitability: Aggressive
RSI
57 · Neutral
20D MA 50D MA 200D MAGOLDEN CROSSSupport $9.24Resistance $10.63

Price Targets

$9
$9
$10
A.Upside+0.5%
A.R:R-0.8:1
Setup A.R:R (at entry)2.7:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeCautious

Risk Alerts

! Target reached (-8.6% upside)
! Earnings in 0 days - binary event risk
! Negative risk/reward — downside exceeds upside

Earnings

B
B
M
M
2/4 beats
Next Earnings2026-04-30 (0d)

Verdict History

reverse chrono — latest first
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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?

Wait for pullback to $9.31. BUY gates pass at $10.37, but concentration risk — Property Type: hotels and concentration risk — Geographic: major metropolitan markets (71.0%) argue for a more patient entry. Engine's entry $9.31 (Support Atr Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Chart setup: RSI 57 mid-range, Bollinger mid-band. Earnings in 0 days. Wait until post-earnings. Target $10.42 (+0.5%), stop $8.87 (−16.9%), Setup A.R:R 2.7:1. Score 5.3/10, moderate confidence.

What is the DRH stock price target?

Take-profit target: $10.42 (+11.4% upside). Target $10.42 (+0.5%), stop $8.87 (−16.9%), Setup A.R:R 2.7:1. Stop-loss: $8.87.

What are the risks of investing in DRH?

Concentration risk — Property Type: hotels; Concentration risk — Geographic: major metropolitan markets (71.0%); Analyst target reached - limited upside remaining.

Is DRH overvalued or undervalued?

Diamondrock Hospitality Company trades at a P/E of 23.3 (forward 18.5). TrendMatrix value score: 5.4/10. Verdict: Buy (Wait for Entry).

What do analysts say about DRH?

17 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 lodging REIT owning 35 premium hotels and resorts with 9,595 rooms across 26...

DiamondRock Hospitality is a self-managed lodging REIT owning 35 premium hotels and resorts with 9,595 rooms across 26 U.S. markets. Revenue flows through TRS lessees from third-party-managed hotels; over 97% of 2025 revenues were from core urban and destination resort hotels. About 18 of 35 hotels operate under Marriott, Hilton, or IHG franchise agreements.

Related stocks: RHP (Ryman Hospitality Properties, I) · HST (Host Hotels & Resorts, Inc.) · SHO (Sunstone Hotel Investors, Inc. ) · PK (Park Hotels & Resorts Inc.) · RLJ (RLJ Lodging Trust)