Diamondrock Hospitality Company (DRH) Stock Analysis
Range Bound setup
Real Estate · REIT - Hotel & Motel
Sell if holding. At $10.43, A.R:R is negative (-0.8) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Property Type: hotels; Concentration risk — Geographic: major metropolitan markets (71.0%).
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
Sell if holding. At $10.43, A.R:R is negative (-0.8) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Property Type: hotels; Concentration risk — Geographic: major metropolitan markets (71.0%). Chart setup: RSI 56 mid-range, Bollinger mid-band. Score 5.3/10, moderate confidence.
Passes 4/6 gates (clean insider activity, no SEC red flags, earnings proximity no date, semi cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHPropertyhotels10-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 5.02LOWChairman 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
1 floor-breaker
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. At $10.43, A.R:R is negative (-0.8) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Concentration risk — Property Type: hotels; Concentration risk — Geographic: major metropolitan markets (71.0%). Chart setup: RSI 56 mid-range, Bollinger mid-band. Prior stop was $9.94. Score 5.3/10, moderate confidence.
Take-profit target: $10.42 (+0.4% upside). Prior stop was $9.94. Stop-loss: $9.94.
Concentration risk — Property Type: hotels; Concentration risk — Geographic: major metropolitan markets (71.0%); Analyst target reached - limited upside remaining.
Diamondrock Hospitality Company trades at a P/E of 23.2 (forward 18.4). TrendMatrix value score: 5.2/10. Verdict: Sell.
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.