| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 62 | 16.7x | 17.8x | Around median | |
Growth | 58 | 1.0% | 7.1% | Around median | |
Quality | 65 | 7.0% | 4.5% | Around median | |
Safety | 55 | 3.0x | 2.6x | Around median | |
Capital Return | 29 | 3.11% | 2.12% | Bottom tier | |
Momentum | 91 | 50.7% | 2.9% | Top tier | |
Sentiment | 74 | 4 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
DiamondRock Hospitality Company is a hotel real estate investment trust that owns a portfolio of resorts and urban hotels and generates revenue from rooms and guest spending within its properties, including food and beverages, spas, and parking. The company relies on a mix of independent and branded hotels; approximately 90% of the portfolio operates under third-party management agreements that the company may terminate at will, while room-level EBITDA at its independent hotels has historically been 50% higher than at its branded hotels.
In fiscal Q2 2026, revenue was $318.3 million, net income was $90.5 million, and earnings per share were $0.44, compared with revenue of $258.2 million and net income of $14.5 million in fiscal Q1 2026. Adjusted EBITDA was $108 million, and adjusted FFO per share was $0.44, but the results included a $6.9 million, or $0.03 per share, settlement of multiyear property tax disputes for the two Chicago hotels.
Comparable RevPAR increased 7% in fiscal Q2 2026, and total RevPAR increased 5.6%. Resorts recorded RevPAR growth of 7.9%, compared with 6.6% for urban hotels, while both group revenue and transient revenue grew by more than 6%. With total hotel revenue growing 5.5% and operating expenses increasing only 1.8%, the adjusted hotel EBITDA margin expanded by 240 basis points; excluding the one-time property tax benefit, the FFO margin expanded by 303 basis points.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $13.05, within a range of $11 to $14, while the top of this range is slightly above the 52-week range high of $13.79, and the average is approximately 5% below it. Consensus remains Neutral, and the absence of a displayed price-to-earnings multiple limits direct earnings-based comparisons, so the available valuation rests primarily on the company's ability to achieve expected adjusted FFO of between $1.18 and $1.23 per share and 18% growth in free cash flow per share in fiscal 2026, weighed against the risks of slowing margin growth and competition for acquisitions.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
DiamondRock's revenue in fiscal Q2 2026 was approximately $318.3 million, net income was $90.5 million, and earnings per share were $0.44. The company generated adjusted EBITDA of $108 million and adjusted FFO of $0.44 per share. The result included a benefit of $6.9 million, or $0.03 per share, from settling multiyear property tax disputes for the two Chicago hotels. Comparable RevPAR increased 7%, with the adjusted hotel EBITDA margin expanding by 240 basis points.
Management raised its fiscal 2026 RevPAR growth forecast to a range of between 2.5% and 4%, an increase of 75 basis points at the midpoint of the previous range. It expects adjusted EBITDA of between $310 million and $320 million and adjusted FFO per share of between $1.18 and $1.23. Capital expenditures are estimated at between $75 million and $85 million, making the updated outlook consistent with 18% growth in free cash flow per share. Management expects RevPAR growth in fiscal Q4 2026 to be stronger than in Q3.
During the first three quarters of operating L'Auberge de Sedona as an integrated resort, revenue increased 17% and adjusted hotel EBITDA increased 40% compared with two years earlier. The margin expanded by 670 basis points, prompting the company to raise its expected contribution to fiscal 2026 RevPAR growth from 50 basis points to at least 75 basis points. Management stated that a $25 million investment, which had been expected to add approximately $3 million of EBITDA, is now on track to generate a 20% return on invested capital. The pace of group bookings for the property in 2027 also exceeded twice the 2026 level.
RevPAR at DiamondRock's resorts increased 7.9% in fiscal Q2 2026, led by L'Auberge de Sedona, Cavallo Point, the Jupiter resorts, and The Landing Lake Tahoe, which recorded double-digit growth. RevPAR at urban hotels increased 6.6%, then accelerated to approximately 10% in June 2026, led by The Dagny, the two Chicago hotels, Bourbon Orleans, Kimpton Palomar Phoenix, and Hotel Emblem. Group revenue growth was 6.6%, driven by rate increases of more than 3.5% and a 2.5% increase in room nights. The company expects adjusted urban hotel revenue to exceed 2019 levels by a double-digit percentage by the end of fiscal 2026.
DiamondRock has no debt maturities before 2029, no secured or convertible debt, no preferred stock, and no off-balance-sheet obligations, according to the July 31, 2026 call. Management estimated that net debt to EBITDA could approach 3 times by year-end if it does not complete additional transactions. Remaining within the target range of between 3 and 4 times would, by its estimate, provide approximately $500 million of additional borrowing and investment capacity. However, competition for assets is intense, as some of the company's bids were between 10% and 15% below the winning bids.
One risk is that a large portion of earnings depends on high-spending hotels, as properties where the average daily guest folio exceeded $475 generated approximately two-thirds of EBITDA. Management expects expense growth of approximately 2.5% in the second half of fiscal 2026, with higher labor costs in New York and increased bonus accruals, and therefore expects the pace of margin improvement to moderate. The pace of group bookings in fiscal Q3 2026 is also expected to be approximately flat, with a gap in August bookings that the company is relying on short-term transient demand to fill. In addition, municipal requirements made the expansion of The Landing Lake Tahoe economically unfeasible at this time.
