Updated
The most significant concentration Diamondrock Hospitality discloses is major metropolitan market hotels at 71%, classified HIGH by disclosed size. Below: the full set from the latest 10-K — verbatim quotes, filing references, and a synthesis of what these exposures mean together.
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Source: Diamondrock Hospitality’s SEC Form 10-K filed — view the filing on SEC EDGAR ↗
Each card carries a disclosed-size chip (HIGH / MEDIUM / LOW — how large the exposure is as a share of revenue, not how dangerous it is) and a nature tag: Built-in(the company’s own model, geography, or products) or Outside party (an external customer, supplier, or distributor it relies on).
“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'”
“10-K Item 1A: 'Our business model, especially our concentration in premium full-service hotels, can be highly volatile'”
The company's disclosed concentration profile combines a large geographic revenue share with a deliberate property-type strategy, both of which are structural in character. Hotels located in major metropolitan markets constituted 71% of total revenues in 2025, a large-share exposure reflecting a portfolio that is purposefully weighted toward urban, high-demand lodging locations. While major metro presence is a strategic choice, the filing explicitly notes these properties have been, or may be, targets of terrorist attacks or active shooter incidents — a specific idiosyncratic tail risk layered on top of the geographic concentration. The second exposure reinforces the first: the business model is described as concentrated in premium full-service hotels, also a large-share exposure by disclosed size and structural in character. Premium full-service properties carry higher fixed-cost structures and greater revenue volatility relative to select-service or limited-service formats, because room rates and occupancy in this segment are more sensitive to corporate travel demand, conventions, and economic cycles. Together, these two structural concentrations compound one another: a portfolio concentrated in premium full-service hotels in major metros is exposed to multiple channels simultaneously — macro travel demand, event-driven occupancy, urban security events, and local market supply additions. On balance, the profile is well-disclosed and strategically intentional, but it argues for careful attention to metro-market lodging fundamentals and the cyclicality of premium hotel RevPAR as the primary performance drivers.
For the engine’s reasoning on DRH’s current verdict — including which dimensions drove the score — see the per-dimension breakdown.
| Symbol | Name | HIGH | MEDIUM | LOW | Total |
|---|---|---|---|---|---|
| PK | Park Hotels & Resorts Inc. | 2 | 1 | 0 | 3 |
| DRH● | Diamondrock Hospitality Company | 2 | 0 | 0 | 2 |
| RHP | Ryman Hospitality Properties, I | 2 | 0 | 0 | 2 |
| APLE | Apple Hospitality REIT, Inc. | 1 | 0 | 0 | 1 |
| HST | Host Hotels & Resorts, Inc. | 1 | 0 | 0 | 1 |
| SHO | Sunstone Hotel Investors, Inc. | 0 | 2 | 0 | 2 |
Concentration counts reflect items disclosed in each peer’s most recent 10-K; disclosed-size classification uses TrendMatrix’s internal 10-K extraction taxonomy.