Core Viewpoint - Wall Street analysts anticipate DiamondRock Hospitality (DRH) to report quarterly earnings of $0.21 per share, reflecting a year-over-year increase of 16.7%, with revenues expected to reach $273.69 million, up 3.9% from the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised upward by 0.9% in the last 30 days, indicating a reassessment of initial estimates by covering analysts [2]. - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock price performance [3]. Revenue Projections - Analysts project 'Revenues- Other' to reach $24.45 million, indicating a 3.9% increase from the prior-year quarter [5]. - 'Revenues- Food and beverage' are expected to be $68.85 million, suggesting a year-over-year change of 2.9% [5]. - 'Revenues- Rooms' are predicted to reach $178.65 million, reflecting a 3.2% increase from the year-ago quarter [5]. Depreciation and Amortization - The average prediction for 'Depreciation and amortization' is set at $29.06 million, compared to $28.31 million reported in the same quarter last year [6]. Stock Performance - Shares of DiamondRock Hospitality have decreased by 8.7% over the past month, contrasting with a 1.8% decline in the Zacks S&P 500 composite [6]. - With a Zacks Rank of 3 (Hold), DRH is expected to perform in line with the overall market in the near future [6].

Company Overview - DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that owns a diversified portfolio of hotels concentrated in leisure destinations and top gateway markets, currently owning 36 premium quality hotels and resorts with approximately 9,600 rooms [3] Recent Transaction - On February 19, 2025, the company completed the sale of the 410-room Westin Washington, D.C. City Center for a contract price of $92.0 million, representing an 11.2x multiple on 2024 Hotel EBITDA and a 7.5% capitalization rate on 2024 Hotel net operating income [1] - Excluding a one-time property tax credit and temporary discount on franchise fees, the sales price represents an 11.9x multiple on 2024 Hotel EBITDA and a 7.0% capitalization rate on 2024 Hotel net operating income [1] Strategic Intent - The sale of the Westin D.C. City Center is part of the company's strategy to drive long-term earnings and cash flow per share growth, with plans to prudently redeploy the proceeds to create exceptional value for shareholders [2]

Core Insights - Investors in the REIT and Equity Trust - Other sector may consider DiamondRock Hospitality (DRH) and CubeSmart (CUBE) for potential value investments [1] - The Zacks Rank and Style Scores system are effective tools for identifying value stocks, emphasizing earnings estimates and specific stock traits [2] Valuation Metrics - DiamondRock Hospitality has a Zacks Rank of 2 (Buy), indicating a stronger earnings outlook compared to CubeSmart, which has a Zacks Rank of 3 (Hold) [3] - DRH's forward P/E ratio is 8.21, significantly lower than CUBE's forward P/E of 15.60, suggesting DRH may be undervalued [5] - The PEG ratio for DRH is 4.72, while CUBE's PEG ratio is 11.56, indicating DRH's expected EPS growth is more favorable [5] - DRH's P/B ratio is 1.06, compared to CUBE's P/B of 3.38, further supporting DRH's valuation advantage [6] - Based on these metrics, DRH receives a Value grade of A, while CUBE is rated D, making DRH the more attractive option for value investors [6]

Core Insights - The article emphasizes the importance of value investing and highlights specific companies that exhibit strong value characteristics, particularly DiamondRock Hospitality (DRH) and Xenia Hotels & Resorts (XHR) [2][9]. Company Analysis: DiamondRock Hospitality (DRH) - DRH holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [4]. - The stock has a P/E ratio of 8.31, significantly lower than the industry average of 15.07, suggesting it may be undervalued [4]. - DRH's P/B ratio is 1.08, compared to the industry's average P/B of 1.77, further indicating solid valuation metrics [5]. - The P/S ratio for DRH is 1.58, while the industry average is 3.88, reinforcing the notion of undervaluation [6]. - The P/CF ratio stands at 9.80, compared to the industry's average of 15.99, highlighting an attractive cash flow outlook [7]. Company Analysis: Xenia Hotels & Resorts (XHR) - XHR also holds a Zacks Rank of 2 (Buy) and a Value score of A, making it another appealing option for value investors [8]. - The P/B ratio for XHR is 1.15, which is lower than the industry's average of 1.77, indicating a favorable valuation [8]. Conclusion - Both DRH and XHR are identified as impressive value stocks, likely being undervalued in the current market, supported by their strong earnings outlook and favorable valuation metrics [9].

Core Viewpoint - The comparison between DiamondRock Hospitality (DRH) and CubeSmart (CUBE) indicates that DRH presents a better value opportunity for investors at this time [1]. Group 1: Zacks Rank and Earnings Outlook - DiamondRock Hospitality has a Zacks Rank of 2 (Buy), while CubeSmart has a Zacks Rank of 3 (Hold), suggesting a more favorable earnings outlook for DRH [3]. - The Zacks Rank system favors stocks with positive revisions to earnings estimates, which is currently the case for DRH [3]. Group 2: Valuation Metrics - DRH has a forward P/E ratio of 8.74, significantly lower than CUBE's forward P/E of 15.87, indicating that DRH may be undervalued [5]. - The PEG ratio for DRH is 5.02, while CUBE's PEG ratio is 11.75, further suggesting that DRH is a more attractive investment based on expected earnings growth [5]. - DRH's P/B ratio stands at 1.13, compared to CUBE's P/B of 3.44, reinforcing the notion that DRH is undervalued relative to its book value [6]. Group 3: Overall Value Assessment - Based on the aforementioned valuation metrics, DRH holds a Value grade of A, while CUBE has a Value grade of D, indicating a stronger value proposition for DRH [6]. - The improving earnings outlook for DRH enhances its attractiveness as a value investment option [7].

Core Insights - The article emphasizes the importance of value investing as a successful strategy across various market conditions, focusing on fundamental analysis and traditional valuation metrics to identify undervalued stocks [2][10]. Company Analysis: DiamondRock Hospitality (DRH) - DRH holds a Zacks Rank of 2 (Buy) and a Value grade of A, with a current P/E ratio of 8.56, significantly lower than the industry average of 14.94 [4]. - The company's P/B ratio is 1.11, which is favorable compared to the industry's average P/B of 1.75, with historical P/B values ranging from 0.99 to 1.25 [5]. - DRH's P/S ratio stands at 1.68, compared to the industry average of 4.2, indicating a strong valuation based on sales [6]. - The P/CF ratio for DRH is 10.09, lower than the industry's average of 15.82, with a historical range of 8.71 to 11.08 [7]. Company Analysis: RLJ Lodging Trust (RLJ) - RLJ is also rated 2 (Buy) with a Value Score of A, trading at a forward earnings multiple of 6.16, which is much lower than the industry P/E of 14.94 [8]. - The P/B ratio for RLJ is 0.77, significantly below the industry's average of 1.75, with historical values between 0.70 and 0.96 [9]. - RLJ's PEG ratio is 1.98, compared to the industry's PEG ratio of 2.09, indicating a favorable valuation relative to growth [8]. Conclusion - Both DiamondRock Hospitality and RLJ Lodging Trust are identified as likely undervalued stocks based on their strong earnings outlook and favorable valuation metrics [10].

DiamondRock Hospitality (NYSE: DRH ) is a hotel REIT that owns a portfolio of about three dozen premium hotels in the United States . While the common shares are not uninteresting based on the after-capex AFFO guidance for 2024 (the definitiveHe is the leader of the investment group European Small Cap Ideas which offers exclusive access to actionable research on appealing Europe-focused investment opportunities not found elsewhere. The a focus is on high-quality ideas in the small-cap space, with emphasis o ...

BETHESDA, Md., Jan. 24, 2025 /PRNewswire/ -- DiamondRock Hospitality Company (the "Company") (NYSE: DRH) announced the following tax treatment of the 2024 distributions to holders of the Company's common and Series A preferred stock. Security Description Ticker Symbol Record Date Payable Date Total Distribution per Share Ordinary Dividends (Box 1a) Section 199A  Dividends (Box 5) Common DRH 3/29/2024 4/12/2024 $0.030000 $0.030000 $0.030000 Common DRH 6/28/2024 7/12/2024 $0 ...

BETHESDA, Md., Jan. 15, 2025 /PRNewswire/ -- DiamondRock Hospitality Company (the "Company") (NYSE: DRH) announced today that its Board of Directors (the "Board") increased the size of the Board from eight to nine members and appointed Stephanie Lepori to the Board, effective January 15, 2025.Ms. Lepori currently serves as Chief Administrative and Accounting Officer at Caesars Entertainment, Inc. ("Caesars") where she has responsibility for accounting, shared services, SEC and other external reporting, payr ...

BETHESDA, Md., Jan. 8, 2025 /PRNewswire/ -- DiamondRock Hospitality Company (the "Company") (NYSE: DRH) will report financial results for the fourth quarter and full year 2024 after the market closes on Thursday, February 27, 2025. A conference call for investors and other interested parties is scheduled for the next day on Friday, February 28, 2025 at 10:00 a.m. Eastern Time (ET). The information to be discussed on the call will be contained in the Company's earnings release, which will be available in the ...