At a glance
Diamondrock Hospitality Company is worth $2.92B, about 32 times its fiscal 2025 earnings. Revenue fell 0.8% to $1.12B in fiscal 2025, with 9.1% kept as profit; over 5 years it has grown 30.2% a year. It pays a 2.88% dividend yield, raised every year for at least 4 years, and returned $240.2M to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +92.1% over the past year with dividends reinvested and +11.9% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 68.0% in the 2020 crash (S&P 500: 33.7%) and 34.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 12 months and 41 months after the lows.
The business in plain English
DiamondRock Hospitality is a real estate investment trust (REIT), a company that owns property and must pay out most of its taxable income as dividends. As of December 31, 2025, it owned 35 US hotels and resorts with 9,595 rooms in 26 markets. Most are rated luxury or upper upscale (the tier just below luxury) and sit in major cities or leisure destinations. More than 97% of 2025 revenue came from these core urban and resort hotels.
DiamondRock owns its hotels but does not run them. Outside companies manage every property for fees tied to revenue and profit, and brands charge fees at some hotels. Nearly 40% of the portfolio runs as independent hotels; the rest carry a Marriott, Hilton or IHG brand. After those fees, DiamondRock keeps each hotel's operating profit or absorbs its loss. Because room rates and occupancy change every day, income is less predictable than at REITs that collect fixed rent on long leases.
Fiscal 2025 revenue was about $1.12 billion. Room rentals brought in 65%, food and beverage 25%, and other sources about 10%. The company tries to raise profits by rebranding and renovating hotels; it says it has rebranded seven since 2021. It describes its balance sheet as conservative, and as of December 31, 2025, none of its hotels carried mortgage debt.
Price history
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DRH +92.1% over the year to Oct 28, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Rooms | $728.6M | 65% |
| Food and beverage | $281.8M | 25.1% |
| Other | $110.1M | 9.8% |
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $318.3M, up 4.1% from a year earlier, and net income was $90.5M (+121.6%).
- For fiscal 2025, revenue was $1.12B (-0.8% year over year; +30.2% a year from FY2020 to FY2025) with a 9.1% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +30.2% good |
|---|---|
| Free cash flow margin | 14.5% good |
| Return on equity (FY2025) | 7% weak |
| Return on assets (FY2025) | 3.4% watch |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $299.5M | $-394.4M | — |
| FY2021 | $567.1M | $-194.6M | — |
| FY2022 | $1.00B | $109.3M | $138.6M |
| FY2023 | $1.07B | $86.3M | $151.3M |
| FY2024 | $1.13B | $48.0M | $142.8M |
| FY2025 | $1.12B | $101.4M | $162.1M |
Valuation snapshot
| Market value | $2.92B |
|---|---|
| P/E ratio | 32.4 |
| Dividend yield | 2.88% |
Rank among 1514 US companies
Market value at each year end
Diamondrock Hospitality’s market value went from $2.31B at the end of 2016 to $2.92B on Oct 28, 2026, up 26%; since the end of 2025 it is up 60%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Oct 28, 2026 | $2.92B | +59.9% |
| 2025 | $1.83B | -2.6% |
| 2024 | $1.87B | -4.8% |
| 2023 | $1.97B | +14.8% |
| 2022 | $1.71B | -15.3% |
| 2021 | $2.02B | +23.0% |
| 2020 | $1.65B | -25.8% |
| 2019 | $2.22B | +17.5% |
| 2018 | $1.89B | -16.5% |
| 2017 | $2.26B | -2.1% |
| 2016 | $2.31B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| DRH price data to Oct 28, 2026 | +63.3% | +92.1% | +29.1% | +11.9% | +7.7% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +63.3% |
| 2025 | +3.7% |
| 2024 | -0.4% |
| 2023 | +16.3% |
| 2022 | -13.8% |
| 2021 | +16.5% |
| 2020 | -25.5% |
| 2019 | +30.0% |
| 2018 | -16.8% |
| 2017 | +2.5% |
| 2016 | +26.1% |
| 2015 | -32.2% |
| 2014 | +32.7% |
| 2013 | +33.0% |
| 2012 | -3.5% |
| 2011 | -16.9% |
| 2010 | +41.7% |
| 2009 | +73.4% |
| 2008 | -63.9% |
| 2007 | -12.1% |
| 2006 | +58.0% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 82.9% over that stretch · deepest drop along the way 85.1%, back to its old high 72.4 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 56.3% over that stretch · deepest drop along the way 68%, back to its old high 11.8 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 18.2% over that stretch · deepest drop along the way 34%, back to its old high 40.5 months after the low |
Insider activity
Form 4 filings from 2025-10-31 to 2026-10-31 (20 read): 5 open-market purchases ($6K) and 3 sales ($487K).
| Date | Insider | Type | Value |
|---|---|---|---|
| Jun 12, 2026 | Kathleen Merrill Director | sell | $238K |
| May 13, 2026 | Michael A. Hartmeier Director | sell | $209K |
| Mar 3, 2026 | Steve Spierto SVP, Chief Accounting Officer | sell | $40K |
| Jul 14, 2026 | Stephanie Lepori Director | buy | $1K |
| Apr 14, 2026 | Stephanie Lepori Director | buy | $1K |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 17.4% | Mar 31, 2025 |
| Vanguard Portfolio Management | 12.76% | Sep 30, 2026 |
| Vanguard Capital Management | 5.3% | Mar 31, 2026 |
ETFs with the most weight in DRH
| XSLV Invesco S&P SmallCap Low Volatility ETF | 0.8% |
| PSCF Invesco S&P SmallCap Financials ETF | 0.47% |
| DGRS WisdomTree US Smallcap Quality Dividend Growth Fund | 0.34% |
| SEIS SEI Select Small Cap ETF | 0.33% |
| FYC First Trust Small Cap Growth AlphaDEX Fund | 0.25% |
| SLYG SPDR S&P 600 Small Cap Growth ETF | 0.25% |
| VIOG Vanguard S&P Small-Cap 600 Growth ETF | 0.25% |
| IJT iShares S&P Small-Cap 600 Growth ETF | 0.24% |
What could go wrong
- Earnings swing with nightly hotel bookings. Unlike REITs with long leases, DiamondRock keeps each hotel's profit or loss. Premium full-service hotels carry high fixed costs, so when bookings drop, profits can fall faster than revenue.
- Premium hotels suffer most in slowdowns. Upscale hotels historically post their strongest results in a growing economy and their weakest in a slowdown, when travelers cut trips or pick cheaper hotels. The stock fell 85% in the 2008 crisis.
- Relies on outside managers and brands. Third-party companies run every hotel, so results depend on their skill. Disputes with managers or brand owners could bring legal costs, and keeping a brand license requires ongoing spending.
- Competition from new hotels and Airbnb. New hotels built in its markets can quickly drag down room rates and occupancy. Airbnb-style rentals and video calls that replace business trips may reduce demand, and online booking sites can squeeze profits.
- Disasters, pandemics and climate change. Natural disasters, climate change, terrorism or a pandemic can damage hotels or keep travelers home, and insurance may not cover every loss. The stock fell 68% in the 2020 COVID crash.
- Debt, interest rates and refinancing. Total debt was about $1.1 billion as of June 30, 2026. Higher interest rates can raise borrowing costs, loans must eventually be refinanced, and loan terms may limit asset sales and dividends.
Recent events
- Investor presentation or announcement; Other company announcement
- Investor presentation or announcement
- Quarterly results released
- Investor presentation or announcement; Other company announcement
- Quarterly results released; Shareholder vote results
- Investor presentation or announcement
- Quarterly results released
- Executive or board change; Investor presentation or announcement
- Investor presentation or announcement
- Investor presentation or announcement
For income and retirement investors
The dividend record is short and uneven. Dividends per share fell from about $0.13 in 2020 to almost nothing in 2021, then rose four years in a row to $0.36 in fiscal 2025. Dividends paid that year equaled about 97% of net income and 61% of free cash flow (cash left after running and upgrading the hotels). The yield was 2.88% as of October 28, 2026. REIT dividends generally don't qualify for reduced tax rates. Buybacks totaled about $78 million over fiscal 2021–2025, and the share count fell about 3% between August 2021 and July 2026.
Downturns have hit the stock hard. It dropped 85% in the 2008 crisis and needed about six years from its low to recover. It fell 68% in the 2020 COVID crash and recovered in about a year, and lost 34% in the 2022 bear market, needing more than three years to recover. Single stocks carry more risk than diversified funds.
Questions investors ask
How does DiamondRock Hospitality make money?
Mainly by renting hotel rooms. As of December 31, 2025, DiamondRock owned 35 premium US hotels and resorts. It keeps their operating profit after paying fees to outside managers and, at some hotels, to brands. In fiscal 2025, revenue was about $1.12 billion: rooms made up 65%, food and beverage 25%, and other sources about 10%. Because it collects hotel profits rather than fixed rent, its income rises and falls with travel demand.
Does DiamondRock Hospitality raise its dividend every year?
No. DRH raised its dividend per share four years in a row through fiscal 2025, reaching $0.36, but that streak followed a near-total cut: the payout dropped from about $0.13 per share in 2020 to almost nothing in 2021. The yield was 2.88% as of October 28, 2026. The company's annual report warns that it cannot guarantee future distributions at expected levels.
What hotel brands does DiamondRock Hospitality use?
A mix of big brands and independents. Nearly 40% of DiamondRock's portfolio operates as independent hotels; the rest carry a brand owned by Marriott, Hilton or IHG. DiamondRock owns the properties but does not operate them: third-party managers, either independent operators or brand operators like Marriott, run every hotel for a fee. The company picks the brand and manager it thinks will produce the most cash flow at each property. Its annual report, filed in February 2026, says it has rebranded seven hotels since 2021.
How much debt does DiamondRock Hospitality have?
About $1.1 billion as of June 30, 2026, against roughly $106 million in cash and investments and $1.52 billion of shareholders' equity. As of December 31, 2025, its debt consisted of unsecured term loans (loans not backed by specific properties), nothing was drawn on its credit line, and none of its hotels carried mortgages. The company calls its balance sheet conservative, but its loans still carry refinancing and interest-rate risk.
How has DRH stock performed over the long run?
Unevenly. Based on its share price, as of October 28, 2026, DRH returned about 92% over one year, 29% a year over three years, 12% a year over five years and 8% a year over ten years. That includes a 63% rise in 2026 through October 28. Losses have been deep, too: its largest fall from a peak was about 87%, and after the 2008 crisis it took about six years to recover from its low.