DiamondRock Hospitality (NYSE:DRH) Posts Quarterly Earnings Results, Beats Estimates By $0.22 EPS

DiamondRock Hospitality (NYSE:DRH) released its quarterly earnings results on Thursday. The real estate investment trust reported $0.44 EPS for the quarter, topping analysts’ consensus estimates of $0.22 by $0.22, Briefing.com reports. The company had revenue of $318.29 million for the quarter, compared to the consensus estimate of $314.98 million. DiamondRock Hospitality had a net margin of 5.69% and a return on equity of 4.04%. DiamondRock Hospitality’s revenue was up 4.1% on a year-over-year basis. During the same period in the previous year, the firm earned $0.35 EPS. DiamondRock Hospitality updated its FY 2026 guidance to 1.180-1.230 EPS.

DiamondRock Hospitality Stock Up 2.6%

Shares of NYSE:DRH traded up $0.33 during trading on Friday, hitting $13.24. 4,582,288 shares of the company’s stock traded hands, compared to its average volume of 2,343,725. The company has a market cap of $2.71 billion, a price-to-earnings ratio of 52.96, a price-to-earnings-growth ratio of 4.50 and a beta of 0.98. DiamondRock Hospitality has a 52 week low of $7.45 and a 52 week high of $13.48. 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 company has a 50-day moving average price of $12.05 and a 200-day moving average price of $10.62.

DiamondRock Hospitality Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 14th. Shareholders of record on Wednesday, September 30th will be issued a $0.11 dividend. This represents a $0.44 annualized dividend and a dividend yield of 3.3%. This is an increase from DiamondRock Hospitality’s previous quarterly dividend of $0.09. The ex-dividend date is Wednesday, September 30th. DiamondRock Hospitality’s dividend payout ratio is currently 49.32%.

Analyst Ratings Changes

A number of equities research analysts have commented on DRH shares. Stifel Nicolaus raised their price objective on DiamondRock Hospitality from $12.50 to $13.25 and gave the stock a “hold” rating in a research report on Friday. Barclays increased their price objective on DiamondRock Hospitality from $10.00 to $12.00 and gave the company an “equal weight” rating in a research report on Monday, June 1st. Bank of America lifted their price objective on DiamondRock Hospitality from $12.50 to $13.00 and gave the stock a “buy” rating in a report on Monday, July 20th. LADENBURG THALM/SH SH boosted their price target on DiamondRock Hospitality from $13.00 to $14.00 and gave the company a “buy” rating in a research note on Thursday, June 18th. Finally, Truist Financial raised their price objective on shares of DiamondRock Hospitality from $11.00 to $12.00 and gave the stock a “buy” rating in a report on Tuesday, May 26th. Four investment analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $12.22.

Insider Activity

In other news, Director Kathleen Merrill sold 20,000 shares of the company’s stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $11.88, for a total transaction of $237,600.00. Following the sale, the director owned 84,335 shares in the company, valued at $1,001,899.80. This represents a 19.17% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, Director Michael A. Hartmeier sold 20,000 shares of DiamondRock Hospitality stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of $10.46, for a total transaction of $209,200.00. Following the completion of the transaction, the director directly owned 95,354 shares of the company’s stock, valued at approximately $997,402.84. This trade represents a 17.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.90% of the stock is owned by corporate insiders.

Institutional Trading of DiamondRock Hospitality

A number of hedge funds have recently made changes to their positions in DRH. Corient Private Wealth LLC acquired a new position in shares of DiamondRock Hospitality during the 4th quarter worth approximately $118,000. Invesco Ltd. lifted its stake in shares of DiamondRock Hospitality by 19.3% during the 4th quarter. Invesco Ltd. now owns 1,098,648 shares of the real estate investment trust’s stock worth $9,844,000 after buying an additional 177,593 shares during the last quarter. EP Wealth Advisors LLC acquired a new position in DiamondRock Hospitality in the 4th quarter valued at about $200,000. Mackenzie Financial Corp lifted its position in DiamondRock Hospitality by 97.3% during the fourth quarter. Mackenzie Financial Corp now owns 50,293 shares of the real estate investment trust’s stock worth $462,000 after acquiring an additional 24,796 shares during the last quarter. Finally, Voloridge Investment Management LLC boosted its stake in DiamondRock Hospitality by 19.3% in the 4th quarter. Voloridge Investment Management LLC now owns 541,411 shares of the real estate investment trust’s stock valued at $4,851,000 after purchasing an additional 87,437 shares during the period.

Trending Headlines about DiamondRock Hospitality

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

• Positive Sentiment: Quarterly results exceeded expectations. DiamondRock reported second-quarter FFO of $0.44 per share, above the $0.37 consensus estimate and up from $0.35 a year earlier. Revenue rose 4.1% year over year to $318.3 million, also surpassing estimates. DiamondRock Hospitality Q2 FFO and Revenues Surpass Estimates
• Positive Sentiment: Management raised 2026 guidance. The company now expects full-year EPS of $1.18-$1.23, above the prior consensus estimate of $1.09, signaling confidence in operating performance and demand across its hotel and resort portfolio. DiamondRock Hospitality Company Reports Second Quarter 2026 Results
• Positive Sentiment: The quarterly dividend was increased. DiamondRock raised its dividend to $0.11 per share from $0.09, a 22.2% increase, providing an annualized yield of approximately 3.3% and potentially supporting investor interest in the REIT. DiamondRock Hospitality Company Reports Second Quarter 2026 Results
• Neutral Sentiment: Analyst sentiment remains cautious. Stifel raised its price target from $12.50 to $13.25 but maintained a “hold” rating, leaving limited implied upside based on the quoted trading level. Benzinga
• Neutral Sentiment: Management’s earnings call provided additional discussion of second-quarter performance and the updated outlook, which investors are using to assess whether the stronger results can continue. DiamondRock Hospitality Q2 2026 Earnings Call Transcript

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.