Diamondrock Hospitality Stock (NYSE: DRH)

Diamondrock Hospitality Stock (NYSE:DRH), Trade Ideas

Diamondrock Hospitality

Diamondrock Hospitality Company is a real estate investment trust that owns lodging properties. Its business is to acquire, own, manage, and renovate full-service hotel properties in the United States. It operates in cities such as Chicago, Boston, New York, Denver, and others. Within DiamondRock's holdings, the majority of the hotel brands include Marriott, Starwood, and Hilton. The revenue is divided between room, food and beverage, and others. The room segment contributes the majority of the revenue. The firm's customers include leisure transient, business transient, and group customers.

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Diamondrock Hospitality Company Common Stock

Diamondrock Hospitality Co

Dr Hoenle AG

Diamondrock Hospitality Company 8.250% Series A Cumulative Redeemable Preferred Stock

Jeffrey Donnelly Appointed Chief Executive Officer; Briony Quinn Appointed Chief Financial Officer; Justin Leonard Appointed President
Appointments Capitalize on DiamondRock's Strong Bench and Proven Talent to Drive Continued Business Momentum
Company Reaffirms 2024 Annual Guidance
BETHESDA, Md., April 15, 2024 /PRNewswire/ -- DiamondRock Hospitality Company (the "Company") (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRH#NYSE">DRH</a>), a lodging-focused real estate investment trust that owns a portfolio of 36 premium hotels and resorts in the United States, today announced leadership changes and a simplified organizational structure to drive continued business momentum:
<ul>
<li>Jeffrey Donnelly, previously Executive Vice President and Chief Financial Officer, has been appointed Chief Executive Officer. Mr. Donnelly is expected to join the Company's Board of Directors after the 2024 Annual Meeting of Stockholders, which will be held in May. He succeeds Mark Brugger, who, after 20 years of service, is departing the Company.</li>
<li>Briony Quinn, previously Senior Vice President and Treasurer, has been named Executive Vice President, Chief Financial Officer and Treasurer, succeeding Mr. Donnelly.</li>
<li>Justin Leonard, formerly Executive Vice President and Chief Operating Officer, has been appointed President. Mr. Leonard will maintain his role as Chief Operating Officer and will assume the responsibilities previously overseen by Troy&nbsp;Furbay, Executive Vice President and Chief Investment Officer, who is departing the Company.</li>
</ul>
With these changes, which are effective today, DiamondRock has reduced its executive team structure from six to four members, including the Company's Executive Vice President and General Counsel.
"DiamondRock has a strong bench of talent and with accelerating performance and a solid foundation in place, the Board believes now is the right time to implement these changes and establish a simpler executive structure that more closely aligns with the needs of the business," said William W. McCarten, Chairman of the DiamondRock Hospitality Company Board.
"Jeff is the ideal person to serve as CEO having demonstrated outstanding leadership and a keen understanding of our portfolio and strategy since joining the Company in 2019. Briony and Justin bring significant finance and transactional expertise, respectively, to their new roles, and their promotions reflect the contributions each has made to DiamondRock's success. As lodging fundamentals continue to improve, we are confident that our new leadership team will advance our strategy and propel additional value creation," continued Mr. McCarten.
"I am excited to be CEO at the dawn of a new era for travel. With our high-quality portfolio of unique lifestyle properties, we are poised to capitalize on the long-term secular demand drivers in the travel industry and deliver sustainable, profitable growth," said Mr. Donnelly. "The streamlined executive structure announced today ensures we have the talent to capture this upside. I look forward to continuing to collaborate with the Board and our highly experienced executive team to create value for shareholders. I would also like to thank Mark for his leadership in building a great company, and I wish him great success in his future endeavors."
"On behalf of the Board, I thank Mark and Troy for their significant contributions, which have helped make DiamondRock the industry leader it is today," Mr. McCarten added. "Mark co-founded DiamondRock 20 years ago and during his tenure he led a successful IPO, guided the expansion and diversification of the portfolio and assembled an experienced and results-driven team. Troy's influence on the Company is reflected in DiamondRock's growth and balanced portfolio, which is ideally suited for the most dynamic trends in travel over the next decade. We wish both Mark and Troy well."
Reaffirms 2024 Guidance The Company is reaffirming its expectations for its full year 2024 results, which were previously announced in its earnings press release on February 22, 2024.
About Jeffrey J. Donnelly Jeffrey J. Donnelly joined DiamondRock as Executive Vice President and Chief Financial Officer in August 2019. Prior to joining DiamondRock, Mr. Donnelly was Managing Director of Equity Research at Wells Fargo Securities where he co-founded Wells Fargo's Real Estate &amp; Lodging Equity Research Platform and had direct responsibility for over $45 billion of equity transactions over his 22-year career. Prior to Wells Fargo, Mr. Donnelly was Assistant Vice President at AEW Capital Management, L.P. where he had asset management responsibility for a 15 million square foot diversified commercial real estate portfolio and executed property and capital market transactions exceeding $5 billion.
Mr. Donnelly is a Chartered Financial Analyst (CFA) and Certified Management Accountant (CMA). He earned a B.B.A. in Finance from The George Washington University and is Founder and Trustee of The Rubinstein-Taybi Syndrome Children's Foundation (RTSCF), a 501(c)3 foundation.
About Briony R. Quinn Briony R. Quinn previously served as Senior Vice President and Treasurer of DiamondRock since March 2018. Ms. Quinn joined DiamondRock in 2007 as Assistant Controller and was promoted to Vice President and Corporate Controller in 2008 and to Chief Accounting Officer in 2014. Prior to DiamondRock, Ms. Quinn was the Vice President of Finance and Accounting for Meristar Hospitality Corporation, a publicly-traded lodging real estate investment trust. She previously held roles at a number of audit and consulting firms, including Arthur Andersen and Beers &amp; Cutler
Ms. Quinn is a former certified public accountant. She holds a B.S in Accounting with a minor in Finance from Providence College.
About Justin L. Leonard Justin L. Leonard joined DiamondRock as Executive Vice President and Chief Operating Officer in July 2022. Prior to joining DiamondRock, he was at Walton Street Capital for 23 years, most recently as a Senior Principal where he was responsible for the oversight of the firm's hotel investments. During his tenure at Walton Street, Mr. Leonard was involved in over $3 billion in hospitality transactions and directed the asset management of 60 branded and independent hotels totaling over 20,000 rooms.
Mr. Leonard holds a B.B.A. in Real Estate from the University of Wisconsin-Madison.

News

Guidance

Management

DiamondRock Hospitality Appoints Jeffrey Donnelly As CEO; Briony Quinn As CFO; Justin Leonard As President; Company Reaffirms 2024 Annual Guidance, Which Were Previously Announced In Its Earnings Press Release On February 22, 2024

Analysts' ratings for Diamondrock Hospitality (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRH#NYSE">DRH</a>) over the last quarter vary from bullish to bearish, as provided by 4 analysts.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Analysts have set 12-month price targets for Diamondrock Hospitality, revealing an average target of $10.62, a high estimate of $11.00, and a low estimate of $10.00. Observing a 9.82% increase, the current average has risen from the previous average price target of $9.67. 
<img src="https://www.benzinga.com/files/images/story/2024/1710424822_0.png" alt="price target chart" />
<h2>Breaking Down Analyst Ratings: A Detailed Examination</h2>
The standing of Diamondrock Hospitality among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Patrick Scholes</td>
<td>Truist Securities</td>
<td>Raises</td>
<td>Hold</td>
<td>$11.00</td>
<td>$10.00</td>
</tr>
<tr>
<td>Simon Yarmak</td>
<td>Stifel</td>
<td>Raises</td>
<td>Buy</td>
<td>$10.50</td>
<td>$10.00</td>
</tr>
<tr>
<td>Keegan Carl</td>
<td>Wolfe Research</td>
<td>Announces</td>
<td>Outperform</td>
<td>$11.00</td>
<td>-</td>
</tr>
<tr>
<td>Dori Kesten</td>
<td>Wells Fargo</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$10.00</td>
<td>$9.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Diamondrock Hospitality. This information offers a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Diamondrock Hospitality compared to the broader market.</li>
<li>Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Diamondrock Hospitality's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Diamondrock Hospitality's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/DRH/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Diamondrock Hospitality analyst ratings.</a>
If you are interested in following small-cap stock news and performance <a href="https://www.benzinga.com/news/small-cap">you can start by tracking it here</a>.
<h2>Discovering Diamondrock Hospitality: A Closer Look</h2>
Diamondrock Hospitality Company is a real estate investment trust that owns lodging properties. Its business is to acquire, own, manage, and renovate full-service hotel properties in the United States. It operates in cities such as Chicago, Boston, New York, Denver, and others. Within DiamondRock's holdings, the majority of the hotel brands include Marriott, Starwood, and Hilton. The revenue is divided between room, food and beverage, and others. The room segment contributes the majority of the revenue. The firm's customers include leisure transient, business transient, and group customers.
<h3>Key Indicators: Diamondrock Hospitality's Financial Health</h3>
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
Revenue Growth: Diamondrock Hospitality's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 3.33%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Real Estate sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 3.22%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): Diamondrock Hospitality's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 0.52%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): Diamondrock Hospitality's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.26%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: With a below-average debt-to-equity ratio of 0.79, Diamondrock Hospitality adopts a prudent financial strategy, indicating a balanced approach to debt management.
<h2>The Core of Analyst Ratings: What Every Investor Should Know</h2>
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Analyst Ratings

Key Takeaways From Diamondrock Hospitality Analyst Ratings

Truist Securities analyst Patrick Scholes maintains Diamondrock Hospitality (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRH#NYSE">DRH</a>) with a Hold and raises the price target from $10 to $11.

Price Target

Truist Securities Maintains Hold on Diamondrock Hospitality, Raises Price Target to $11

In the last three months, 4 analysts have published ratings on Diamondrock Hospitality (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRH#NYSE">DRH</a>), offering a diverse range of perspectives from bullish to bearish.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $10.12, a high estimate of $11.00, and a low estimate of $9.00. Surpassing the previous average price target of $9.50, the current average has increased by 6.53%.
<img src="https://www.benzinga.com/files/images/story/2024/1708696843_0.png" alt="price target chart" />
<h2>Exploring Analyst Ratings: An In-Depth Overview</h2>
The perception of Diamondrock Hospitality by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Simon Yarmak</td>
<td>Stifel</td>
<td>Raises</td>
<td>Buy</td>
<td>$10.50</td>
<td>$10.00</td>
</tr>
<tr>
<td>Keegan Carl</td>
<td>Wolfe Research</td>
<td>Announces</td>
<td>Outperform</td>
<td>$11.00</td>
<td>-</td>
</tr>
<tr>
<td>Dori Kesten</td>
<td>Wells Fargo</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$10.00</td>
<td>$9.00</td>
</tr>
<tr>
<td>Dori Kesten</td>
<td>Wells Fargo</td>
<td>Announces</td>
<td>Equal-Weight</td>
<td>$9.00</td>
<td>-</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Diamondrock Hospitality. This offers insight into analysts' perspectives on the current state of the company.</li>
<li>Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Diamondrock Hospitality compared to the broader market.</li>
<li>Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Diamondrock Hospitality's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Diamondrock Hospitality's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/DRH/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Diamondrock Hospitality analyst ratings.</a>
If you are interested in following small-cap stock news and performance <a href="https://www.benzinga.com/news/small-cap">you can start by tracking it here</a>.
<h2>Discovering Diamondrock Hospitality: A Closer Look</h2>
Diamondrock Hospitality Company is a real estate investment trust that owns lodging properties. Its business is to acquire, own, manage, and renovate full-service hotel properties in the United States. It operates in cities such as Chicago, Boston, New York, Denver and others. Within DiamondRock's holdings, the majority of the hotel brands include Marriott, Starwood, and Hilton. The revenue is divided between room, food and beverage, and other. The room segment contributes the majority of the revenue. The firm's customers include leisure transient, business transient, and group customers.
<h3>Diamondrock Hospitality: A Financial Overview</h3>
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
Revenue Growth: Over the 3 months period, Diamondrock Hospitality showcased positive performance, achieving a revenue growth rate of 3.1% as of 30 September, 2023. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Real Estate sector.
Net Margin: Diamondrock Hospitality's net margin is impressive, surpassing industry averages. With a net margin of 8.98%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Diamondrock Hospitality's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.52% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): Diamondrock Hospitality's ROA stands out, surpassing industry averages. With an impressive ROA of 0.77%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.79.
<h2>The Core of Analyst Ratings: What Every Investor Should Know</h2>
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter. 
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Assessing Diamondrock Hospitality: Insights From 4 Financial Analysts

Diamondrock Hospitality (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRH#NYSE">DRH</a>) reported quarterly earnings of $0.18 per share. This is a 21.74 percent decrease over earnings of $0.23 per share from the same period last year. The company reported quarterly sales of $263.55 million which beat the analyst consensus estimate of $261.45 million by 0.80 percent. This is a 3.33 percent increase over sales of $255.06 million the same period last year.

Earnings

Diamondrock Hospitality Q4 FFO $0.18 Down From $0.23 YoY, Sales $263.55M Beat $261.45M Estimate

Every day, Wall Street analysts diligently revise and update ratings and price targets on real estate investment trusts (<a href="https://www.benzinga.com/real-estate/reit">REITs</a>). Sometimes an analyst will analyze several REITs in the same subsector. In these instances, it allows investors to compare and contrast similar stocks to identify which ones are more likely to perform the best in the future.
This week an analyst at Wolfe Research initiated coverage of four hotel REITs and set price targets on two of the four. Take a look at these four REITs to see how each stacks up against the others.
RLJ Lodging Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RLJ#NYSE">RLJ</a>) is a Bethesda, Maryland-based hotel REIT that owns 96 premium-branded hotels with 21,239 rooms across 23 states and Washington, D.C. Its brands include Marriott, Hilton Garden Inn, Embassy Suites and Hyatt.
While still below pre-COVID levels, the occupancy rate increased from 72.7% in the third quarter of 2022 to 74.1% in the third quarter of 2023. Average daily rates (ADR) and revenue per available room (RevPAR) are also higher by about 1.5% than a year ago.
On Jan. 10, Wolfe Research analyst Keegan Carl initiated coverage on RLJ Lodging with an Outperform rating and announced a price target of $15.
RLJ had a flurry of analyst reviews within the last three weeks. Oppenheimer &amp; Co. Inc. rates it Outperform with a $14 price target. Truist Securities calls it a Buy with a $14 price target and Wells Fargo recently maintained it as Equal-Weight with a $12.50 price target.
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Diamondrock Hospitality (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRH#NYSE">DRH</a>) is a Bethesda, Maryland-based hotel REIT with a portfolio of 36 premium hotels and resorts consisting of 9,724 rooms in 25 key gateway cities across the U.S. While its revenue has risen this year, RevPAR is still below 2022.
On Jan. 10, Wolfe Research analyst Carl initiated coverage on Diamondrock Hospitality with an Outperform rating and announced a price target of $11.
On Dec. 8, Wells Fargo Securities analyst Dori Kesten downgraded Diamondrock Hospitality from Overweight to Equal-Weight with a $9 price target. Two weeks later, Kesten maintained the Equal-Weight rating while raising the price target to $10.
Summit Hotel Properties Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/INN#NYSE">INN</a>) is an Austin, Texas-based hotel REIT that partly or wholly owns 101 assets with 15,035 rooms over 24 states. Marriott, Hyatt and Hilton brands make up 95% of its portfolio.
On Nov. 1, Summit Hotel announced its third-quarter operating results. Funds from operations (FFO) of $0.22 beat the estimates by $0.04 but was below its FFO of $0.27 in the third quarter of 2022. Revenue of $181.8 million beat the estimate of $179.86 million and was ahead of revenue of $178.25 million in the third quarter of 2022.
On Jan. 10, Wolfe Research analyst Carl initiated coverage on Summit Hotel Properties with a Peer Perform rating. No price target was announced. In December, Zacks Investment Research upgraded Summit from Underperform to Neutral. Again, no price target was announced.
Xenia Hotels &amp; Resorts (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHR#NYSE">XHR</a>) is an Orlando, Florida-based hotel REIT that owns and operates 32 luxury and upscale hotels and resorts with 9,514 rooms in 25 markets across the U.S. Marriott, Hyatt and Hilton are some of the brands in its portfolio.
On Jan. 10, Wolfe Research analyst Carl initiated coverage on Xenia Hotels &amp; Resorts with a Peer Perform rating. No price target was announced.
Over the past month, other analysts also have weighed in on Xenia Hotels. Jefferies has a Hold rating with a $14 price target, Wells Fargo rates it Equal-Weight with a $14 price target, and KeyBanc Capital Markets has an Overweight rating with a $15 price target.
In its last earnings report, Xenia missed estimates for both FFO and revenue by small amounts.
The chart below compares each of the four hotel REITs on important measures:&nbsp;&nbsp;
<figure class="wp-block-table"> 
<table>
<tbody>
<tr>
<td>Name</td>
<td>Symbol</td>
<td>Price/ FFO</td>
<td>Dividend Yield</td>
<td>Forward Payout Ratio</td>
<td>Performance Last 13 Weeks</td>
</tr>
<tr>
<td>RLJ Lodging</td>
<td>RLJ</td>
<td>7.12</td>
<td>3.46%</td>
<td>24.6%</td>
<td>17.74%&nbsp;</td>
</tr>
<tr>
<td>Diamondrock Hospitality</td>
<td>DRH</td>
<td>10.06</td>
<td>1.28%</td>
<td>12.9%</td>
<td>16.36%</td>
</tr>
<tr>
<td>Summit Hotel Properties</td>
<td>INN</td>
<td>7.71</td>
<td>3.63%</td>
<td>25.5%</td>
<td>13.55%</td>
</tr>
<tr>
<td>Xenia Hotels &amp; Resorts</td>
<td>XHR</td>
<td>8.78</td>
<td>3.02%</td>
<td>26.4%</td>
<td>11.55%</td>
</tr>
</tbody>
</table>
</figure>
The hotel REIT subsector in general is still somewhat undervalued, which can be seen by the lower price/FFO ratios in the chart above. Payout ratios are also quite low, mostly because hotel REITs were decimated in 2020 when the COVID-19 pandemic began. All four REITs severely cut the quarterly dividends that year from much higher levels. Summit Hotel suspended its dividend for over two years.
Over the past three years, all four REITs have produced substantially improved earnings and revenue, but in that time, only RLJ has raised its dividend three times. Two of those raises occurred in 2023. Summit has raised its dividend twice, and Diamondrock and Xenia have not raised the dividends at all. That suggests superior financial strength and confidence by RLJ Lodging, which is also borne out by its having the best performance record of the group over the past 13 weeks.
There are clear reasons why the analyst rated RLJ Lodging and Diamondrock as Outperform, while Summit and Xenia are rated Peer Perform. Of the four, RLJ has the lowest P/FFO ratio, the second-best dividend yield and payout ratio and the best performance over the last 13 weeks. Diamondrock has the second-best performance. However, the $15 price target for RLJ versus the $11 price target for Diamondrock is substantially better, with Diamondrock a slightly better choice than the rest and deserving of its higher rating.
Among the four hotel REITs with initiated coverage by Wolfe Research, RLJ has demonstrated its superiority over the rest of the group.
Weekly REIT Report: REITs are one of the most misunderstood investment options, making it difficult for investors to spot incredible opportunities until it's too late. Benzinga's in-house real estate research team has been working hard to identify the greatest opportunities in today's market, which you can gain access to for free by signing up for the <a href="https://www.benzinga.com/money/reit-newsletter">Weekly REIT Report.</a>
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Analysts' ratings for Diamondrock Hospitality (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRH#NYSE">DRH</a>) over the last quarter vary from bullish to bearish, as provided by 5 analysts.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $9.7, a high estimate of $11.00, and a low estimate of $9.00. This upward trend is apparent, with the current average reflecting a 5.78% increase from the previous average price target of $9.17.
<img src="https://www.benzinga.com/files/images/story/2024/1704895212_0.png" alt="price target chart" />
<h2>Deciphering Analyst Ratings: An In-Depth Analysis</h2>
An in-depth analysis of recent analyst actions unveils how financial experts perceive Diamondrock Hospitality. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Keegan Carl</td>
<td>Wolfe Research</td>
<td>Announces</td>
<td>Outperform</td>
<td>$11.00</td>
<td>-</td>
</tr>
<tr>
<td>Dori Kesten</td>
<td>Wells Fargo</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$10.00</td>
<td>$9.00</td>
</tr>
<tr>
<td>Dori Kesten</td>
<td>Wells Fargo</td>
<td>Announces</td>
<td>Equal-Weight</td>
<td>$9.00</td>
<td>-</td>
</tr>
<tr>
<td>Dori Kesten</td>
<td>Wells Fargo</td>
<td>Lowers</td>
<td>Overweight</td>
<td>$9.50</td>
<td>$10.00</td>
</tr>
<tr>
<td>Stephen Grambling</td>
<td>Morgan Stanley</td>
<td>Raises</td>
<td>Equal-Weight</td>
<td>$9.00</td>
<td>$8.50</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Diamondrock Hospitality. This insight gives a snapshot of analysts' perspectives on the current state of the company.</li>
<li>Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Diamondrock Hospitality compared to the broader market.</li>
<li>Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Diamondrock Hospitality's stock. This examination reveals shifts in analysts' expectations over time.</li>
</ul>
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Diamondrock Hospitality's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/DRH/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Diamondrock Hospitality analyst ratings.</a>
If you are interested in following small-cap stock news and performance <a href="https://www.benzinga.com/news/small-cap">you can start by tracking it here</a>.
<h2>Delving into Diamondrock Hospitality's Background</h2>
Diamondrock Hospitality Company is a real estate investment trust that owns lodging properties. Its business is to acquire, own, manage, and renovate full-service hotel properties in the United States. It operates in cities such as Chicago, Boston, New York, Denver and others. Within DiamondRock's holdings, the majority of the hotel brands include Marriott, Starwood, and Hilton. The revenue is divided between room, food and beverage, and other. The room segment contributes the majority of the revenue. The firm's customers include leisure transient, business transient, and group customers.
<h3>Understanding the Numbers: Diamondrock Hospitality's Finances</h3>
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Revenue Growth: Diamondrock Hospitality's remarkable performance in 3 months is evident. As of 30 September, 2023, the company achieved an impressive revenue growth rate of 3.1%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Real Estate sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 8.98%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Diamondrock Hospitality's ROE excels beyond industry benchmarks, reaching 1.52%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Diamondrock Hospitality's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.77%, the company showcases efficient use of assets and strong financial health.
Debt Management: Diamondrock Hospitality's debt-to-equity ratio is below the industry average at 0.79, reflecting a lower dependency on debt financing and a more conservative financial approach.
<h2>Analyst Ratings: Simplified</h2>
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Deep Dive Into Diamondrock Hospitality Stock: Analyst Perspectives (5 Ratings)

Wolfe Research analyst Keegan Carl initiates coverage on Diamondrock Hospitality (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRH#NYSE">DRH</a>) with a Outperform rating and announces Price Target of $11.

Initiation

Wolfe Research Initiates Coverage On Diamondrock Hospitality with Outperform Rating, Announces Price Target of $11

Wells Fargo analyst Dori Kesten maintains Diamondrock Hospitality (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRH#NYSE">DRH</a>) with a Equal-Weight and raises the price target from $9 to $10.

Wells Fargo Maintains Equal-Weight on Diamondrock Hospitality, Raises Price Target to $10

A couple of analysts put a damper on what had been an excellent five-week run for real estate investment trusts (REITs). Nothing goes up or down forever on Wall Street, and analysts can sometimes push the brakes on a runaway stock by downgrading it a notch or two. Often the downgrade is accompanied by a cut in the stock's price target as well.
One analyst is downgrading REITs this week while raising the price targets as if trying to play catch-up to where these stocks have now advanced. Several of these REITs have been on fire since Nov. 1, so perhaps the analyst felt the massive gains were unsustainable.
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Take a look at a half dozen REITs that went under the analysts' knives to start the week:
Vornado Realty Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VNO#NYSE">VNO</a>) is a New York-based diversified REIT that owns and operates approximately 26 million square feet of commercial office buildings and some street retail and mixed-use establishments in New York, Chicago and San Francisco. About 88% of its portfolio net operating income (NOI) is derived from 2,000 rental units in New York City. Vornado has been trading on the New York Stock Exchange for over 60 years.
Vornado Realty also owns and operates advertising signage in the Penn District and Times Square areas of New York City, including a six-story-high, 330-foot wide 4K LED sign on Broadway, the largest 4K LED sign in the world.
Vornado Realty also has a 32.4% interest in Alexander's Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALX#NYSE">ALX</a>), a REIT that owns six properties in the New York City metropolitan area.
On Dec. 11, Evercore ISI Group analyst Steve Sakwa downgraded Vornado Realty from In-Line to Underperform and raised the price target from $23 to $28.
Can the analyst's downgrade slow this express train down? Since Nov. 1, Vornado has been the third-best-performing REIT with a total return of 45.68%.
National Storage Affiliates Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NSA#NYSE">NSA</a>) is a Greenwood Village, Colorado-based self-storage REIT that owns and operates 1,119 self-storage properties in the largest metropolitan areas throughout 42 states and Puerto Rico. Its third-quarter occupancy rate was 87.9%.
On Dec. 11, Sakwa downgraded National Storage Affiliates from In-Line to Underperform and raised the price target from $32 to $35. National Storage Affiliates is another stock that has recently been on a roll, with a total return of 29.21% since Nov. 1.
CubeSmart (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CUBE#NYSE">CUBE</a>) is a Malvern, Pennsylvania-based, internally managed self-storage REIT with over 600 storage facilities across the U.S. It had its initial public offering (IPO) in 2004 under the name, U-Store-It. In 2011, it was rebranded as CubeSmart. Between 2012 and 2022, CubeSmart grew its funds from operations (FFO) per share by 242%. Its same-store occupancy rate was recently 92.1%.
On Dec. 7, CubeSmart announced a 4.1% increase in its quarterly dividend from $0.49 to $0.51 per share. The dividend is payable on Jan. 16 to shareholders of record on Jan. 2. The new annual dividend of $2.04 per share yields 4.65%.
On Dec. 11, Sakwa downgraded CubeSmart from Outperform to In-Line and raised the price target from $42 to $43.
CubeSmart's total return since Nov. 1 is 23.73%.
Equity Residential (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EQR#NYSE">EQR</a>) is a Chicago-based REIT that owns or invests in 301 apartment buildings with 80,683 units in large urban areas, such as Boston, New York, Washington D.C, Seattle, San Francisco and Denver. Its third-quarter occupancy rate was 96%. Equity Residential is a member of the S&amp;P 500.
On Dec. 11, Mizuho analyst Haendel St. Juste downgraded Equity Residential from Buy to Neutral and lowered the price target from $62 to $58.
Equity Residential's total gain since Nov. 1 is 9.51%.
Gaming and Leisure Properties Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GLPI#NASDAQ">GLPI</a>) is a specialized REIT that owns and triple-net leases 61 gaming properties across 18 states. Its tenants include Penn Entertainment Inc., Caesars Entertainment Inc., Boyd Gaming Corp. and others. It owns and operates over 14,800 hotel rooms and leases 28.7 million square feet of property. Gaming and Leisure Properties was formed in 2013 as the nation's first gaming REIT.
On Dec. 11, St. Juste downgraded Gaming and Leisure Properties from Buy to Neutral and lowered the price target from $50 to $47.
Unlike the previous REITs, Gaming and Leisure Properties&#8217; gain since Nov. 1 is a more modest 2.42%.
Agree Realty Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ADC#NYSE">ADC</a>) is a Bloomfield Hills, Michigan-based net-lease REIT that focuses on retail properties. Its portfolio includes 2,084 owned and operated properties totaling 43 million square feet across 49 states. Of its tenants, 69% are investment grade.
Agree Realty was founded as Agree Development Co. in 1971. It went public as a REIT on the New York Stock Exchange in 1994 as Agree Realty Corp. Some of its largest tenants include well-known names like Walmart Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WMT#NYSE">WMT</a>), Best Buy Co. Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BBY#NYSE">BBY</a>) Dollar General Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DG#NYSE">DG</a>) and Kroger Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KR#NYSE">KR</a>).
On Dec. 11, St. Juste downgraded Agree Realty from Buy to Neutral and lowered the price target from $67 to $61.
Agree Realty's total gain since Nov. 1 is 3.53%.
These six REITs were not the only recent downgrades. On Dec. 8, Wells Fargo analyst Dori Kesten downgraded three hotel REITs — Apple Hospitality REIT Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/APLE#NYSE">APLE</a>) from Overweight to Equal-Weight with a $17 price target, Diamondrock Hospitality Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRH#NYSE">DRH</a>) from Overweight to Equal-Weight with a $9 price target and Sunstone Hotel Investors Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHO#NYSE">SHO</a>) from Equal-Weight to Underweight with a $9.50 price target.
A change in momentum could be on the way for many REITs this week.
Weekly REIT Report: REITs are one of the most misunderstood investment options, making it difficult for investors to spot incredible opportunities until it's too late. Benzinga's in-house real estate research team has been working hard to identify the greatest opportunities in today's market, which you can gain access to for free by signing up for the <a href="https://www.benzinga.com/money/reit-newsletter">Weekly REIT Report.</a>
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Within the last quarter, Diamondrock Hospitality (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRH#NYSE">DRH</a>) has observed the following analyst ratings: 
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
In the last 3 months, 4 analysts have offered 12-month price targets for Diamondrock Hospitality. The company has an average price target of $9.38 with a high of $10.00 and a low of $9.00. 
Below is a summary of how these 4 analysts rated Diamondrock Hospitality over the past 3 months. The greater the number of bullish ratings, the more positive analysts are on the stock and the greater the number of bearish ratings, the more negative analysts are on the stock
<img src="https://www.benzinga.com/files/images/story/2023/1702058433_0.png" alt="price target chart" />
This current average has decreased by 4.58% from the previous average price target of $9.83. 
<a href="https://www.benzinga.com/quote/DRH/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Diamondrock Hospitality analyst ratings.</a>
If you are interested in following small-cap stock news and performance <a href="https://www.benzinga.com/news/small-cap">you can start by tracking it here</a>.
<h1>Analyst Ratings: What Are They?</h1>
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

The Latest Analyst Ratings for Diamondrock Hospitality

Wells Fargo analyst Dori Kesten downgrades Diamondrock Hospitality (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRH#NYSE">DRH</a>) from Overweight to Equal-Weight and announces $9 price target.

Downgrades

Wells Fargo Downgrades Diamondrock Hospitality to Equal-Weight, Announces $9 Price Target

Diamondrock Hospitality (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRH#NYSE">DRH</a>) has observed the following analyst ratings within the last quarter: 
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
According to 4 analyst offering 12-month price targets in the last 3 months, Diamondrock Hospitality has an average price target of $9.25 with a high of $10.00 and a low of $8.50. 
Below is a summary of how these 4 analysts rated Diamondrock Hospitality over the past 3 months. The greater the number of bullish ratings, the more positive analysts are on the stock and the greater the number of bearish ratings, the more negative analysts are on the stock
<img src="https://www.benzinga.com/files/images/story/2023/1699887609_0.png" alt="price target chart" />
This current average has decreased by 3.85% from the previous average price target of $9.62. 
<a href="https://www.benzinga.com/quote/DRH/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Diamondrock Hospitality analyst ratings.</a>
If you are interested in following small-cap stock news and performance <a href="https://www.benzinga.com/news/small-cap">you can start by tracking it here</a>.
<h1>What Are Analyst Ratings?</h1>
Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter. 
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Where Diamondrock Hospitality Stands With Analysts

Wells Fargo analyst Dori Kesten maintains Diamondrock Hospitality (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRH#NYSE">DRH</a>) with a Overweight and lowers the price target from $10 to $9.5.

Wells Fargo Maintains Overweight on Diamondrock Hospitality, Lowers Price Target to $9.5

Morgan Stanley analyst Stephen Grambling maintains Diamondrock Hospitality (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRH#NYSE">DRH</a>) with a Equal-Weight and raises the price target from $8.5 to $9.

Morgan Stanley Maintains Equal-Weight on Diamondrock Hospitality, Raises Price Target to $9

Diamondrock Hospitality (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRH#NYSE">DRH</a>) reported quarterly earnings of $0.26 per share which beat the analyst consensus estimate of $0.23 by 13.04 percent. This is a 7.14 percent decrease over earnings of $0.28 per share from the same period last year. The company reported quarterly sales of $276.52 million which beat the analyst consensus estimate of $269.74 million by 2.51 percent. This is a 3.10 percent increase over sales of $268.21 million the same period last year.

Diamondrock Hospitality Q3 2023 Adj FFO $0.26 Beats $0.23 Estimate, Sales $276.52M Beat $269.74M Estimate

Diamondrock Hospitality (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRH#NYSE">DRH</a>) has observed the following analyst ratings within the last quarter: 
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">3</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
In the last 3 months, 4 analysts have offered 12-month price targets for Diamondrock Hospitality. The company has an average price target of $9.38 with a high of $10.00 and a low of $8.50. 
Below is a summary of how these 4 analysts rated Diamondrock Hospitality over the past 3 months. The greater the number of bullish ratings, the more positive analysts are on the stock and the greater the number of bearish ratings, the more negative analysts are on the stock
<img src="https://www.benzinga.com/files/images/story/2023/1694804452_0.png" alt="price target chart" />
This current average represents a 1.26% decrease from the previous average price target of $9.50. 
<a href="https://www.benzinga.com/quote/DRH/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Diamondrock Hospitality analyst ratings.</a>
If you are interested in following small-cap stock news and performance <a href="https://www.benzinga.com/news/small-cap">you can start by tracking it here</a>.
<h1>Analyst Ratings: What Are They?</h1>
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Expert Ratings for Diamondrock Hospitality

Truist Securities analyst Patrick Scholes maintains Diamondrock Hospitality (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRH#NYSE">DRH</a>) with a Hold and lowers the price target from $11 to $10.

Truist Securities Maintains Hold on Diamondrock Hospitality, Lowers Price Target to $10

Wall Street reporters have a phrase to describe stocks that rise when another stock of the same sector reports excellent news. They write, "Other stocks rose in sympathy." These so-called sympathy stocks don't have any of their own news to propel them higher, but investors surmise that if one stock of a sector reports good news, others of the same ilk may soon follow suit. The result is investors buying shares and pushing the sympathy stock prices higher.
This is especially true when a company is acquired by or merges with another company. Merger fever takes over, and investors then speculate on which companies from the same sector may be next to be purchased at a price well above present levels.
An entire real estate investment trust (REIT) subsector recently rose in sympathy when one of its lower-priced companies was acquired at a substantial premium.
Hersha Hospitality Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HT#NYSE">HT</a>) is a Harrisburg, Pennsylvania-based hotel REIT that owns 25 luxury and lifestyle hotels with 3,811 rooms in larger cities across the U.S.&nbsp;&nbsp;
On Aug. 28, Hersha Hospitality Trust announced it will merge with KSL Capital Partners. Under the terms of the agreement, KSL Capital Partners will acquire all outstanding common shares of Hersha Hospitality for $10 per share in an all-cash transaction of $1.4 billion. This is a 60% premium over Hersha Hospitality's closing price on Aug. 25.
KSL Capital Partners is a private equity fund that invests in the hospitality, recreation, real estate and travel service sectors. It was founded and originally called KSL Recreation in 1992. KSL Capital Partners was formed in 2005, and since then it has invested in over 150 businesses across North America, Europe, Asia and Australia.
Upon announcing the merger, Hersha Hospitality's Executive Chairman Jay H. Shah said, "This transaction provides our shareholders with immediate and certain value at a substantial premium to our public valuation."
Hersha Hospitality stock stormed up 55.89% on the news and closed at $9.79, with most of that gain coming right at the opening bell.  The news triggered buying on several other hotel REITs as well. At the end of the day, five of the best 12 REIT performances were hotel REITs. Take a look at three of them.
<h2 class="wp-block-heading">Don&#8217;t miss:</h2>
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<li>A REIT you've probably never heard of is up 36% over the past two years. <a href="https://www.benzinga.com/real-estate/reit/23/07/33427501/this-reit-youve-never-heard-of-is-crushing-the-market-up-36-over-the-past-two-years">Here's how its unique model is crushing the market.&nbsp;</a></li>
<li>This REIT just teamed up with the company that built Elon Musk's tiny house to develop affordable housing communities. <a href="https://www.benzinga.com/alternative-investments/listing/future-of-housing-fund">Here's how you can be among the first to buy shares.</a></li>
</ul>
Braemar Hotels &amp; Resorts Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHR#NYSE">BHR</a>) is a Dallas-based REIT that invests in luxury hotels and resorts across the U.S. and in Puerto Rico. Braemar Hotels &amp; Resorts now has investments in 16 properties with 4,184 rooms.
On Aug. 2, Braemar Hotels &amp; Resorts reported mixed second-quarter operating results. Funds from operations (FFO) of $0.20 per share was in line with estimates, but 45.95% below FFO of $0.37 per share in the second quarter of 2022. However, revenue of $186.71 million beat the consensus estimate of $173.87 million and was a 6.76% increase over revenue of $174.89 million in the second quarter of 2022.
On Aug. 14, B. Riley Securities analyst Bryan Maher downgraded Braemar Hotels &amp; Resorts from Buy to Neutral and lowered the price target from $7 to $3.50.&nbsp;
"As it relates to Braemar's luxury resort hotels, we have been writing about RevPAR (revenue per available room) weakening for several quarters," Maher noted.&nbsp;
Following the news on Hersha Hospitality, Braemar Hotels soared 15.57% in one day.
Ashford Hospitality Trust Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AHT#NYSE">AHT</a>) is another Dallas-based hotel REIT that owns 100 hotels with 22,316 rooms across 26 states. It focuses on upscale full-service and select-service hotels. Ashford Hospitality Trust is externally advised by Ashford Inc. (NYSEAMERICAN: AINC).
Ashford Hospitality was one of the worst-performing REITs throughout 2022, with a total return of negative 56.73%. Year to date it has continued to perform poorly, with a total return of negative 30.72%.
On July 10, Ashford Hospitality announced it will surrender ownership of 19 hotels across the U.S. as a means to halt worsening debt. Ashford Hospitality ceased making mortgage payments on two hotels in Newark, New Jersey, one in Oakland, California, and one in Walnut Creek, California. Ashford Hospitality estimates it will save $700 million by not paying these mortgages and then paying down debt on other mortgages.&nbsp;
But on Aug. 2, Ashford Hospitality announced second-quarter FFO of $0.78, beating the consensus estimates by $0.31. Revenue of $375.75 million also beat the Street estimates by $5.72 million and was 7.9% higher than revenue during the second quarter of 2022. RevPAR for all hotels was up 6.7% from the second quarter of 2022 to $144.25.
Following Hersha Hospitality's announcement, Ashford Hospitality was up 10.29% on the day.
Chatham Lodging Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLDT#NYSE">CLDT</a>) is a West Palm Beach, Florida-based hotel REIT that owns 39 upscale extended-stay hotels with 5,914 rooms across 16 states and Washington, D.C. Its portfolio includes Residence Inn by Marriott and Homewood Suites by Hilton.
On Aug. 2, Chatham Lodging Trust reported its second-quarter operating results. Adjusted funds from operations (AFFO) of $0.43 per share beat the estimate of $0.39 by 10.26% and was above AFFO of $0.41 per share from the second quarter of 2022. Revenue of $84.48 million beat the estimate of $84.06 and was 3.32% above revenue of $81.76 million in the second quarter of 2022. RevPar has improved from $157 to $189 over the past seven months.
Despite a year-to-date loss of over 13%, on the heels of Hersha Hospitality's announcement, Chatham Lodging rose 6.19% on the day.
Other Hotel REITs with notable sympathy price changes were Summit Hotel Properties Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/INN#NYSE">INN</a>), up 6.07%, Xenia Hotels &amp; Resorts Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHR#NYSE">XHR</a>), up 5.75%, and Diamondrock Hospitality Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRH#NYSE">DRH</a>), up 5.2%.
Hotel REITs have struggled since early 2020 when COVID-19 first hit the U.S. The growing popularity of Airbnb, Vrbo and other short-term rental properties have put a dent in hotel REIT earnings, especially in a post-COVID era of consumer wariness.
On July 20, analyst Tylor Batory of Oppenheimer &amp; Co. Inc. downgraded Chatham Lodging Trust, along with Braemar Hotels &amp; Resorts and Hersha Hospitality Trust, from Outperform to Perform.
But apparently, merger fever has taken over with the acquisition of Hersha Hospitality, and investors seem to be disregarding the analysts and betting that other hotel REITs are grossly undervalued and primed for lucrative takeovers as well. If nothing else, those stocks clearly outperformed for one day.
Weekly REIT Report: REITs are one of the most misunderstood investment options, making it difficult for investors to spot incredible opportunities until it's too late. Benzinga's in-house real estate research team has been working hard to identify the greatest opportunities in today's market, which you can gain access to for free by signing up for the <a href="https://www.benzinga.com/money/reit-newsletter">Weekly REIT Report.</a>

Morgan Stanley analyst Stephen Grambling maintains Diamondrock Hospitality (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRH#NYSE">DRH</a>) with a Equal-Weight and lowers the price target from $9 to $8.5.

Morgan Stanley Maintains Equal-Weight on Diamondrock Hospitality, Lowers Price Target to $8.5

The market has been down on Diamondrock Hospitality Co (DRH)  stock recently. DRH gets a Bearish score from InvestorsObserver Stock Sentiment Indicator. Diamondrock Hospitality Co has a Bearish sentiment reading. Find out what this means for you and get the rest of the rankings on DRH!See Full DRH ReportWhat is Stock Senti

Is Diamondrock Hospitality Co (DRH) a Stock to Watch After Losing -1.15% This Week?

In a report released today, Dori Kesten from Wells Fargo maintained a Hold rating on Diamondrock (DRH – Research Report), with a price target of $1...

Wells Fargo Keeps Their Hold Rating on Diamondrock (DRH)

The 48 rating InvestorsObserver gives to Diamondrock Hospitality Co (DRH)  stock puts it near the middle of the REIT - Hotel and Motel industry. In addition to scoring higher than 53 percent of stocks in the REIT - Hotel and Motel industry, DRHâ€&#x2122;s 48 overall rating means the stock scores better than 48 percent of all stocks

Where Does Diamondrock Hospitality Co (DRH) Stock Fall in the REIT - Hotel & Motel Field After It Is Up 2.88% This Week?

The latest update is out from Diamondrock (DRH). Bill Tennis is set to retire from his roles as Executive Vice President, General Counsel, and Corp...

DiamondRock Announces Executive Leadership Transition Plans

The 85 rating InvestorsObserver gives to Diamondrock Hospitality Co (DRH)  stock puts it near the top of the Real Estate sector.In addition to scoring higher than 83 percent of stocks in the Real Estate sector, DRHâ€&#x2122;s 85 overall rating means the stock scores better than 85 of all stocks. DRH has an Overall Score of 85. Find

Will Diamondrock Hospitality Co (DRH) Stay at the Top of the Real Estate Sector?

Diamondrock (DRH) has provided an update. DiamondRock Hospitality Company has announced a major shake-up in its leadership, with Jeffrey J. Donnell...

Diamondrock Announces Executive Reshuffle and Strategic Focus

DiamondRock Hospitality names Jeffrey Donnelly as CEO

In a report released today, Anthony Powell from Barclays maintained a Buy rating on Diamondrock (DRH – Research Report), with a price target of $11...

Barclays Sticks to Its Buy Rating for Diamondrock (DRH)

A Hawkish Pivot

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