DiamondRock Hospitality (NYSE:DRH) Posts Earnings Results, Beats Estimates By $0.03 EPS

DiamondRock Hospitality (NYSE:DRH) announced its quarterly earnings data on Thursday. The real estate investment trust reported $0.27 earnings per share for the quarter, beating analysts’ consensus estimates of $0.24 by $0.03, Briefing.com reports. The firm had revenue of $274.53 million during the quarter, compared to analysts’ expectations of $273.18 million. DiamondRock Hospitality had a net margin of 5.69% and a return on equity of 4.04%. The business’s quarterly revenue was down 1.6% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.24 earnings per share. DiamondRock Hospitality updated its FY 2026 guidance to 1.090-1.160 EPS.

DiamondRock Hospitality Stock Down 3.0%

DRH stock traded down $0.31 during trading on Friday, hitting $10.03. 1,491,401 shares of the company’s stock were exchanged, compared to its average volume of 2,968,176. The business has a 50-day moving average price of $9.45 and a two-hundred day moving average price of $8.74. The company has a current ratio of 1.64, a quick ratio of 1.64 and a debt-to-equity ratio of 0.70. The stock has a market capitalization of $2.04 billion, a price-to-earnings ratio of 40.18, a PEG ratio of 4.50 and a beta of 1.03. DiamondRock Hospitality has a 52-week low of $6.18 and a 52-week high of $10.67.

DiamondRock Hospitality Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, April 14th. Stockholders of record on Tuesday, March 31st will be given a dividend of $0.09 per share. This is a boost from DiamondRock Hospitality’s previous quarterly dividend of $0.08. The ex-dividend date of this dividend is Tuesday, March 31st. This represents a $0.36 annualized dividend and a dividend yield of 3.6%. DiamondRock Hospitality’s dividend payout ratio is 128.00%.

Key Headlines Impacting DiamondRock Hospitality

Here are the key news stories impacting DiamondRock Hospitality this week:

• Positive Sentiment: Q4 EPS/FFO beat consensus — DRH reported $0.27 EPS (FFO) vs. consensus $0.24, and revenue slightly topped estimates, which is a near-term fundamental positive for the REIT. MarketBeat Q4 Report
• Positive Sentiment: Dividend hike — DRH raised its quarterly dividend 12.5% to $0.09 (annualized yield ~3.5%), payable April 14 to shareholders of record March 31; that improves income appeal for dividend investors.
• Positive Sentiment: FY‑2026 guidance provided — management issued EPS guidance of $1.090–1.160 for FY‑2026, which is meaningfully above current sell‑side consensus cited in filings and supports the beat narrative. Company Press Release
• Neutral Sentiment: Top-line mixed — revenue of $274.5M slightly exceeded estimates but was down 1.6% year‑over‑year, signaling mixed demand dynamics across the portfolio. Q4 Snapshot
• Negative Sentiment: Profitability remains modest — ROE (~4.0%) and net margin (~5.7%) are low versus broader market averages, which may damp longer‑term multiple expansion despite the beat and dividend increase.

Institutional Trading of DiamondRock Hospitality

Several institutional investors have recently modified their holdings of the stock. Global Retirement Partners LLC raised its stake in DiamondRock Hospitality by 12,114.7% during the 4th quarter. Global Retirement Partners LLC now owns 4,153 shares of the real estate investment trust’s stock worth $37,000 after acquiring an additional 4,119 shares in the last quarter. Danske Bank A S acquired a new stake in shares of DiamondRock Hospitality during the third quarter worth about $33,000. State of Wyoming acquired a new stake in shares of DiamondRock Hospitality during the second quarter worth about $58,000. Smartleaf Asset Management LLC lifted its holdings in shares of DiamondRock Hospitality by 33.8% in the 2nd quarter. Smartleaf Asset Management LLC now owns 9,294 shares of the real estate investment trust’s stock valued at $72,000 after purchasing an additional 2,349 shares during the last quarter. Finally, United Services Automobile Association purchased a new stake in shares of DiamondRock Hospitality in the 1st quarter valued at about $91,000.

Wall Street Analysts Forecast Growth

Several equities analysts have commented on DRH shares. Evercore boosted their price target on shares of DiamondRock Hospitality from $9.00 to $10.00 and gave the stock an “in-line” rating in a research note on Thursday, November 20th. Barclays assumed coverage on DiamondRock Hospitality in a research note on Tuesday, January 6th. They set an “equal weight” rating and a $10.00 target price for the company. Wells Fargo & Company upped their price target on DiamondRock Hospitality from $9.00 to $10.00 and gave the stock an “equal weight” rating in a report on Monday, December 1st. Truist Financial upgraded DiamondRock Hospitality from a “hold” rating to a “buy” rating and lifted their price objective for the company from $10.00 to $11.00 in a research note on Friday, January 9th. Finally, Deutsche Bank Aktiengesellschaft raised DiamondRock Hospitality from a “hold” rating to a “buy” rating and boosted their price objective for the stock from $10.00 to $12.00 in a research report on Tuesday, January 13th. Three research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat, DiamondRock Hospitality has a consensus rating of “Hold” and an average target price of $9.91.

DiamondRock Hospitality Company Profile

DiamondRock Hospitality Company is a real estate investment trust (REIT) that acquires, owns and manages a diversified portfolio of upscale, full-service hotels in urban gateway markets across the United States. Established in 2004 and headquartered in Bethesda, Maryland, the company focuses on investing in high-quality lodging properties that cater to both business and leisure travelers. Its assets are positioned in key metropolitan areas, enabling DiamondRock to benefit from strong demand drivers such as corporate travel, group conventions and resort leisure stays.

The company’s portfolio includes full-service hotels offering a broad range of amenities, including guest rooms, on-site food and beverage outlets, meeting and event space, fitness centers and spa services.