DiamondRock Hospitality (NYSE:DRH) Issues Quarterly Earnings Results, Beats Expectations By $0.03 EPS

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

DiamondRock Hospitality Stock Performance

Shares of DRH opened at $10.04 on Friday. The company’s 50 day simple moving average is $9.47 and its 200-day simple moving average is $8.76. The firm has a market cap of $2.05 billion, a PE ratio of 40.16, a price-to-earnings-growth ratio of 4.50 and a beta of 1.03. DiamondRock Hospitality has a 12-month low of $6.18 and a 12-month high of $10.67. The company has a current ratio of 1.64, a quick ratio of 1.64 and a debt-to-equity ratio of 0.70.

DiamondRock Hospitality Increases Dividend

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

Key Stories Impacting DiamondRock Hospitality

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

• Positive Sentiment: Q4 results beat expectations — reported EPS/FFO of $0.27 vs. consensus $0.24 and revenue of $274.5M versus $273.2M, a modest upside that supports the share price. MarketBeat Q4 Earnings
• Positive Sentiment: Management raised the quarterly dividend to $0.09 (12.5% increase) with a 3.5% yield and an ex‑dividend date of March 31 — a shareholder‑friendly move that typically supports the stock.
• Positive Sentiment: DiamondRock updated FY‑2026 guidance to $1.090–$1.160 EPS, which is above recent analyst consensus (the street average cited ~$0.96), suggesting management expects continued earnings recovery. Press Release / Guidance PDF
• Neutral Sentiment: Company hosted a conference call and several outlets published earnings writeups and snapshots that provide more detail for investors evaluating the beat and guidance. SeattlePI Q4 Snapshot
• Negative Sentiment: Revenue declined 1.6% year‑over‑year and the company’s net margin (5.7%) and return on equity (~4.0%) remain modest — reminders that profitability and top‑line growth are not yet robust, which can limit upside.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. Freestone Grove Partners LP purchased a new position in DiamondRock Hospitality during the third quarter worth about $136,000. Cibc World Markets Corp acquired a new position in DiamondRock Hospitality during the 4th quarter worth approximately $122,000. Corient Private Wealth LLC purchased a new position in shares of DiamondRock Hospitality during the 4th quarter worth approximately $118,000. CIBC Asset Management Inc acquired a new stake in shares of DiamondRock Hospitality in the 4th quarter valued at approximately $118,000. Finally, Glenmede Investment Management LP boosted its stake in shares of DiamondRock Hospitality by 22.7% in the third quarter. Glenmede Investment Management LP now owns 14,253 shares of the real estate investment trust’s stock valued at $113,000 after buying an additional 2,634 shares in the last quarter.

Analyst Ratings Changes

DRH has been the topic of a number of recent analyst reports. Wells Fargo & Company increased their price objective on shares of DiamondRock Hospitality from $9.00 to $10.00 and gave the company an “equal weight” rating in a research report on Monday, December 1st. Truist Financial raised DiamondRock Hospitality from a “hold” rating to a “buy” rating and increased their target price for the company from $10.00 to $11.00 in a report on Friday, January 9th. Barclays began coverage on DiamondRock Hospitality in a research note on Tuesday, January 6th. They issued an “equal weight” rating and a $10.00 price target on the stock. Deutsche Bank Aktiengesellschaft raised DiamondRock Hospitality from a “hold” rating to a “buy” rating and upped their price objective for the stock from $10.00 to $12.00 in a research report on Tuesday, January 13th. Finally, Evercore raised their target price on DiamondRock Hospitality from $9.00 to $10.00 and gave the stock an “in-line” rating in a research report on Thursday, November 20th. Three equities research analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target 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.