DiamondRock Hospitality (NYSE:DRH) Sets New 12-Month High on Better-Than-Expected Earnings

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

The real estate investment trust reported $0.27 earnings per share for the quarter, beating analysts’ consensus estimates of $0.24 by $0.03. DiamondRock Hospitality had a net margin of 5.69% and a return on equity of 4.04%. The business had revenue of $274.53 million during the quarter, compared to analyst estimates of $273.18 million. During the same quarter last year, the business posted $0.24 earnings per share. DiamondRock Hospitality’s revenue for the quarter was down 1.6% compared to the same quarter last year. DiamondRock Hospitality has set its FY 2026 guidance at 1.090-1.160 EPS.

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 paid a $0.09 dividend. 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 payout ratio is 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.

Wall Street Analysts Forecast Growth

A number of research analysts have recently weighed in on the company. Wells Fargo & Company increased their price target on DiamondRock Hospitality from $9.00 to $10.00 and gave the company an “equal weight” rating in a research note 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 research note on Friday, January 9th. Deutsche Bank Aktiengesellschaft upgraded DiamondRock Hospitality from a “hold” rating to a “buy” rating and boosted their target price for the stock from $10.00 to $12.00 in a research report on Tuesday, January 13th. Evercore increased their price target on shares of DiamondRock Hospitality from $9.00 to $10.00 and gave the company an “in-line” rating in a research report on Thursday, November 20th. 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 research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat.com, DiamondRock Hospitality currently has a consensus rating of “Hold” and a consensus target price of $9.91.

Institutional Investors Weigh In On DiamondRock Hospitality

Several large investors have recently made changes to their positions in the stock. Allworth Financial LP boosted its stake in DiamondRock Hospitality by 146.0% in the 4th quarter. Allworth Financial LP now owns 2,859 shares of the real estate investment trust’s stock worth $26,000 after purchasing an additional 1,697 shares during the period. First Horizon Corp lifted its holdings in shares of 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 valued at $29,000 after purchasing an additional 1,139 shares in the last quarter. EverSource Wealth Advisors LLC lifted its holdings in shares of DiamondRock Hospitality by 77.3% in the fourth quarter. EverSource Wealth Advisors LLC now owns 3,436 shares of the real estate investment trust’s stock valued at $31,000 after purchasing an additional 1,498 shares in the last quarter. Danske Bank A S acquired a new position in shares of DiamondRock Hospitality during the third quarter worth about $33,000. Finally, Global Retirement Partners LLC grew its holdings in shares of DiamondRock Hospitality by 12,114.7% during the fourth quarter. Global Retirement Partners LLC now owns 4,153 shares of the real estate investment trust’s stock worth $37,000 after buying an additional 4,119 shares in the last quarter.

DiamondRock Hospitality Stock Performance

The firm has a market cap of $2.05 billion, a price-to-earnings ratio of 40.16, a price-to-earnings-growth ratio of 4.50 and a beta of 1.03. The stock has a 50-day moving average of $9.47 and a 200-day moving average of $8.76. The company has a debt-to-equity ratio of 0.70, a quick ratio of 1.64 and a current ratio of 1.64.

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.