DiamondRock Hospitality (NYSE:DRH) Reaches New 12-Month High on Strong Earnings

DiamondRock Hospitality Company (NYSE:DRH)’s stock price reached a new 52-week high during trading on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $10.29 and last traded at $10.2550, with a volume of 316014 shares. The stock had previously closed at $10.05.

The real estate investment trust reported $0.27 EPS for the quarter, topping analysts’ consensus estimates of $0.24 by $0.03. The firm 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 last year, the company earned $0.24 EPS. DiamondRock Hospitality has set its FY 2026 guidance at 1.090-1.160 EPS.

DiamondRock Hospitality Increases Dividend

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

Key DiamondRock Hospitality News

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.

Analyst Ratings Changes

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

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of DRH. First Horizon Corp increased its position in DiamondRock Hospitality by 54.9% in the fourth quarter. First Horizon Corp now owns 3,214 shares of the real estate investment trust’s stock worth $29,000 after buying an additional 1,139 shares during the last quarter. ProShare Advisors LLC grew its stake in shares of DiamondRock Hospitality by 3.1% during the 4th quarter. ProShare Advisors LLC now owns 40,041 shares of the real estate investment trust’s stock worth $359,000 after acquiring an additional 1,203 shares during the period. Mirae Asset Global Investments Co. Ltd. increased its holdings in DiamondRock Hospitality by 32.5% in the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 5,990 shares of the real estate investment trust’s stock worth $54,000 after acquiring an additional 1,470 shares during the last quarter. EverSource Wealth Advisors LLC raised its stake in DiamondRock Hospitality by 77.3% in the 4th quarter. EverSource Wealth Advisors LLC now owns 3,436 shares of the real estate investment trust’s stock valued at $31,000 after acquiring an additional 1,498 shares during the period. Finally, Metis Global Partners LLC raised its stake in DiamondRock Hospitality by 3.6% in the 4th quarter. Metis Global Partners LLC now owns 48,193 shares of the real estate investment trust’s stock valued at $432,000 after acquiring an additional 1,667 shares during the period.

DiamondRock Hospitality Stock Performance

The company has a debt-to-equity ratio of 0.70, a current ratio of 1.64 and a quick ratio of 1.64. The firm has a market capitalization of $2.05 billion, a PE ratio of 40.16, a P/E/G ratio of 4.50 and a beta of 1.03. The company’s fifty day simple moving average is $9.47 and its 200 day simple moving average is $8.76.

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.