Diamondrock Hospitality Company Common Stock (DRH) Fair Value & Analysis
Real Estate · US · Market cap $2.5B · ISIN US2527843013
What is Diamondrock Hospitality Company Common Stock really worth?
Diamondrock Hospitality Company Common Stock
DRH · US
A solid business, but trading 43% above our fair value of $8.43.
Strengths
Risks
For context
Fair value as of: Aug 19, 2026
From 16 valuation models · updated 17 days ago
Share price −9.3% over the past month.
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
What matters now
- The price sits above even our optimistic bull case ($10.54). The favourable scenario is already priced in.
- Solid but not exceptional quality (62/100) and above fair value, neither a clear bargain nor a standout compounder.
- A fairly wide model range ($5.67 to $10.54) leaves room in how you read the outcome.
- As a real-estate business, asset- and dividend-based methods carry more weight here than a standard DCF.
Price vs Fair Value (5 years)
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 19, 2026.
How to read this chart
60‑month range $6.13 – $13.38 · fair‑value band $5.67 – $10.54 · the $12.06 price screens above the $8.43 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 2 fiscal years are left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 19, 2026.
Analysis
Diamondrock Hospitality Company Common Stock (DRH) currently trades at $12.06, while our model-based Fair Value estimate is $8.43, implying the stock looks roughly 43.1% overvalued today. The Quality Score stands at 62/100 (solid quality), in the Real Estate sector. Bull case: the DCF Models group reads highest at a median of $13.03 per share, and 5 of the 16 models we run sit above the $12.06 price. Bear case: the Asset-Based group reads lowest at $4.74, and 11 of the 16 models stay below the price. Evidence for this calculation is high.
Over the trailing twelve months, Diamondrock Hospitality Company Common Stock generated revenue of $1.1B at a net margin of 9.3%. Revenue grew 1.3% year over year. It earns a return on equity of 6.9%. Net debt stands at $1.1B. Fundamentals as of Aug 19, 2026
Our scenario range runs from $5.67 (bear case) to $10.54 (bull case); at $12.06, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 2% below its 52-week high and 68% above its 52-week low, currently above its 200-day average. For context, the median of 10 Real Estate peers we cover trades at −28% fair-value upside, at −30%, DRH screens richer than that median.
Fair Value models
This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly $0.0880 per share, which is 1.0 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.
Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.
All 16 models by family
Widest divergence: DCF Models ($13.03) versus Asset-Based ($4.74). Highest evidence: Residual Income (76).
Notify me when DRH reaches fair value
Put DRH on your watchlist. We get in touch as soon as price and fair value meet or the trend turns.
Set up alert →Free, no payment details. Unsubscribe anytime in one click.
Key figures & financial health
More key figures
Figures from reported company fundamentals · as of Aug 19, 2026. TTM = trailing twelve months.
Quality Score breakdown
Of which business quality 60 · Market factors (momentum, volatility) 76
Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.
All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.
About the company
DiamondRock Hospitality Company is a self-advised real estate investment trust that owns a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets. The Company currently owns 34 premium quality hotels and resorts with approximately 9,400 rooms.
Full company description
DiamondRock Hospitality Company is a self-advised real estate investment trust that owns a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets. The Company currently owns 34 premium quality hotels and resorts with approximately 9,400 rooms. The Company has strategically positioned its portfolio to be operated both under leading global brand families as well as independent boutique hotels in the lifestyle segment. DiamondRock Hospitality Company was established on May 26 2004 and is based in Bethesda, United States.
Company description, as reported by the company or data provider.
Revenue & earnings trend
FY2021 – FY2025 · reported fiscal years
Diamondrock Hospitality Company Common Stock reported revenue of $1.1B in FY2025 versus $567M in FY2021, a compound +18.6%/yr. Reported net income was $101M in FY2025.
of which total revenue +2.3 % · buybacks/dilution −0.6 %
Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).
DRH screens 43% overvalued. Compare with Host Hotels & Resorts, Inc →
Peer Group
REIT - Hotel & Motel · 35 stocks
How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.
Valuation Multiples vs REIT - Hotel & Motel median · lower = cheaper
Strength profile in five axes (Snowflake)
Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.
VALUE 0: the price sits above our fair-value range.
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more REIT - Hotel & Motel stocks, each showing price versus our Fair Value estimate (as of Aug 19, 2026).
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| Host Hotels & Resorts, Inc HST | $22.81 | $15.81 | −31% |
| Ryman Hospitality Properties, Inc RHP | $129.33 | $47.68 | −63% |
| COVH COVH | €22.50 | €21.42 | −5% |
| Apple Hospitality REIT, Inc APLE | $16.36 | $12.63 | −23% |
| Park Hotels & Resorts inc. PK | $14.85 | $19.87 | +34% |
| Sunstone Hotel Investors, Inc SHO | $11.01 | $2.31 | −79% |
| Pebblebrook Hotel Trust PEB | $18.48 | $25.37 | +37% |
| Xenia Hotels & Resorts, Inc XHR | $19.05 | $11.54 | −39% |
| RLJ Lodging Trust (RLJ) RLJ | $11.46 | $8.20 | −28% |
| Service Properties Trust SVC | $7.61 | $2.44 | −68% |
Compare Diamondrock Hospitality Company Common Stock with another stock
Price, fair value, quality and upside side by side.
Explore undervalued stocks
More undervalued Real Estate stocks →
Try a ready-made strategy
Pick a strategy and jump into the live analysis with that exact screen applied.
Discover tools
Frequently asked questions
Is Diamondrock Hospitality Company Common Stock (DRH) overvalued or undervalued?
What is the fair value of DRH?
What is the quality score of DRH?
What is the revenue of Diamondrock Hospitality Company Common Stock (DRH)?
What is the net profit margin of DRH?
Does Diamondrock Hospitality Company Common Stock pay a dividend?
Watch Diamondrock Hospitality Company Common Stock in the live analysis
One click puts Diamondrock Hospitality Company Common Stock on your watchlist: fair value and trend at a glance, plus comparison, the diversification check and the 35,000+ stock screener. You can also try 14 days of Pro there, no card.
Watch for free →Zero risk: nothing is ever charged. Your watchlist is yours, with or without an account.