DiamondRock Hospitality (NYSE:DRH) Posts Earnings Results, Beats Estimates By $0.18 EPS

Key Points

• Earnings beat and guidance: DiamondRock reported Q1 EPS of $0.22 versus a $0.04 consensus (a $0.18 beat) and updated FY2026 guidance to $1.120–$1.180 per share, with revenue up about 1.3% year‑over‑year.
• Dividend hike: The company raised its quarterly dividend to $0.09 (annualized $0.36), implying a ~3.5% yield, though the payout ratio is relatively high at ~81.8%.
• Market and analyst view: Shares traded near $10.20 (market cap ≈ $2.09B) and analysts are mixed—three Buy ratings and six Holds, leaving an average rating of "Hold" and an average price target of $10.47.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) issued its quarterly earnings results on Thursday. The real estate investment trust reported $0.22 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.04 by $0.18, Briefing.com reports. DiamondRock Hospitality had a net margin of 5.69% and a return on equity of 4.04%. During the same quarter last year, the business earned $0.19 EPS. The company's revenue for the quarter was up 1.3% on a year-over-year basis. DiamondRock Hospitality updated its FY 2026 guidance to 1.120-1.180 EPS.

DiamondRock Hospitality Price Performance

Shares of NYSE DRH traded down $0.05 on Thursday, hitting $10.20. The company's stock had a trading volume of 2,493,076 shares, compared to its average volume of 2,417,374. DiamondRock Hospitality has a 12-month low of $7.21 and a 12-month high of $10.67. The company has a market capitalization of $2.09 billion, a price-to-earnings ratio of 40.80, a price-to-earnings-growth ratio of 4.50 and a beta of 0.99. The company has a debt-to-equity ratio of 0.70, a current ratio of 1.64 and a quick ratio of 1.64. The stock has a 50 day moving average of $9.82 and a 200-day moving average of $9.25.

DiamondRock Hospitality Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, April 14th. Shareholders of record on Tuesday, March 31st were issued a $0.09 dividend. This represents a $0.36 annualized dividend and a dividend yield of 3.5%. This is a boost from DiamondRock Hospitality's previous quarterly dividend of $0.08. The ex-dividend date of this dividend was Tuesday, March 31st. DiamondRock Hospitality's payout ratio is currently 81.82%.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on the stock. Deutsche Bank Aktiengesellschaft upgraded shares of DiamondRock Hospitality from a "hold" rating to a "buy" rating and boosted their price target for the stock from $10.00 to $12.00 in a research note on Tuesday, January 13th. Truist Financial raised shares of DiamondRock Hospitality from a "hold" rating to a "buy" rating and boosted their price objective for the stock from $10.00 to $11.00 in a report on Friday, January 9th. Morgan Stanley boosted their price objective on shares of DiamondRock Hospitality from $9.00 to $9.50 and gave the stock an "equal weight" rating in a report on Friday, April 10th. LADENBURG THALM/SH SH initiated coverage on shares of DiamondRock Hospitality in a report on Thursday, March 26th. They set a "buy" rating and a $12.00 price objective on the stock. Finally, Barclays initiated coverage on shares of DiamondRock Hospitality in a report on Tuesday, January 6th. They issued an "equal weight" rating and a $10.00 price target on the stock. Three investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to data from MarketBeat, DiamondRock Hospitality presently has an average rating of "Hold" and an average price target of $10.47.

Insider Activity

In other DiamondRock Hospitality news, CAO Steve Spierto sold 4,000 shares of the company's stock in a transaction dated Tuesday, March 3rd. The shares were sold at an average price of $9.93, for a total value of $39,720.00. Following the sale, the chief accounting officer owned 77,977 shares of the company's stock, valued at $774,311.61. This represents a 4.88% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 0.90% of the stock is owned by company insiders.

Institutional Trading of DiamondRock Hospitality

Institutional investors and hedge funds have recently modified their holdings of the business. EP Wealth Advisors LLC acquired a new position in shares of DiamondRock Hospitality in the fourth quarter valued at approximately $200,000. Smartleaf Asset Management LLC increased its position in DiamondRock Hospitality by 29.6% during the fourth quarter. Smartleaf Asset Management LLC now owns 19,232 shares of the real estate investment trust's stock worth $177,000 after purchasing an additional 4,398 shares during the last quarter. Federation des caisses Desjardins du Quebec increased its position in DiamondRock Hospitality by 27.1% during the fourth quarter. Federation des caisses Desjardins du Quebec now owns 16,444 shares of the real estate investment trust's stock worth $147,000 after purchasing an additional 3,511 shares during the last quarter. Freestone Grove Partners LP acquired a new position in DiamondRock Hospitality during the third quarter worth approximately $136,000. Finally, Cibc World Markets Corp acquired a new position in DiamondRock Hospitality during the fourth quarter worth approximately $122,000.

About DiamondRock Hospitality

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.

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