Citigroup Maintains DiamondRock Hospitality Buy Rating

DiamondRock Hospitality Company's

F3Q report and F4Q outlook were in-line with Street expectations, as well as its own, Citigroup reports. “Two company-specific issues were a drag on F3Q growth and should not persist – difficult group comparison at Westin Boston (~15-20% EBITDA) and a shift in timing of Rosh Hashanah to F3Q from F4Q last year,” Citigroup writes. “Performance at recently acquired hotels has been strong (Minneapolis, Charleston).” Citigroup maintains its Buy rating on relative value (~14x ‘ 11E EBITDA vs. 14.5x for peers) and said that it views today's share price weakness as a buying opportunity. DiamondRock Hospitality currently trades for $10.69.