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 ...

BETHESDA, Md., Nov. 15, 2024 /PRNewswire/ -- DiamondRock Hospitality Company (the "Company") (NYSE: DRH) today announced it has acquired the fee simple interest in the 245-room AC Hotel Minneapolis Downtown (the "Hotel") for $30 million, or approximately $122,000 per key with cash on hand. The Hotel, constructed in 2016, is located in downtown Minneapolis, which has one of the largest concentrations of Fortune 1000 companies in the world and is also a major hub for biotechnology and medical innovation."The ...

DiamondRock Hospitality Company (NYSE:DRH) Q3 2024 Earnings Conference Call November 8, 2024 9:00 AM ET Company Participants Briony Quinn - CFO Jeff Donnelly - CEO Justin Leonard - President and COO Conference Call Participants Dori Kesten - Wells Fargo Securities Austin Wurschmidt - KeyBanc Capital Markets Smedes Rose - Citi Duane Pfennigwerth - Evercore ISI Chris Woronka - Deutsche Bank Michael Bellisario - Baird Chris Darling - Green Street Advisors Operator Good day and thank you for standing by. Welcom ...

Financial Data and Key Metrics Changes - Comparable RevPAR growth was 2.8% over 2023, which was 60 basis points stronger than the previous quarter, while comparable total RevPAR growth was 2.3% over 2023 [6] - Comparable hotel adjusted EBITDA was $82.3 million, reflecting 2.2% growth over 2023 on a 9 basis point lower margin [12] - Corporate adjusted EBITDA increased 3.3% to $75.6 million [12] - The company ended the quarter with a net debt-to-EBITDA ratio of 3.7 times and maintained strong liquidity with over $75 million in corporate cash [14] Business Line Data and Key Metrics Changes - Urban hotels led the portfolio with comparable RevPAR growth of 4.2% in the quarter, while comparable RevPAR at resorts declined by 80 basis points from 2023 [8] - Group revenues increased by 15.7% over 2023, driven by an 8.8% increase in rate and a 6.3% increase in roommates [10] - Total revenue growth for resorts was 1.6%, with specific highlights including Cavallo Point delivering RevPAR growth of over 18% [9] Market Data and Key Metrics Changes - The portfolio experienced a headwind from Hurricane Helene, which held back RevPAR and total RevPAR growth by approximately 35 basis points [7] - Group demand showed strength, but transient pickup, particularly on weekends, was slightly weaker than anticipated [8] Company Strategy and Development Direction - The company is focused on capital allocation strategies, including asset acquisitions and dispositions, share repurchases, and high-return internal investments [17] - A reduction in full-year capital expenditure guidance to $85 million from a previous range of $90 million to $100 million was announced, reflecting better planning and execution [23] - The company aims to maintain capital expenditures in the range of 7% to 9% of revenue going forward [40] Management's Comments on Operating Environment and Future Outlook - Management affirmed the midpoint of EBITDA guidance for the full year and narrowed the range based on recent hurricanes and economic outlook [24] - The group booking pace for 2025 is currently down over 3% compared to the same time last year, but there is positive growth in pace for the first half of 2025 [26] - Management remains optimistic about the leisure segment, expecting it to hold on to pandemic-era gains and return to premium growth [28] Other Important Information - The company was awarded Hotel Global Sector Leader status by GRESB for the fifth consecutive year, recognizing its dedication to corporate responsibility and ESG transparency [19] - The company executed several swaps to fix SOFR at an average rate of 3.2%, entering 2025 with approximately 57% of debt at fixed rates [15] Q&A Session Summary Question: Are there changes likely in ROI projects over the next three years? - Management aims to remain in the 7% to 9% of revenue range for total capital spending, with ongoing evaluations of projects [40][41] Question: What are the expectations for labor costs over the next year? - Labor costs in resort markets have cooled, with wages up about 1.5 points, while urban markets may see increases of 3% to 5% [43][44] Question: What is the outlook for major convention markets for next year? - There is a slight negative bias in convention markets like Chicago and DC, with Boston expected to be flat [46][47] Question: How does the shift in booking trends impact the outlook? - The focus on leisure and resort assets is a long-term strategy, with short-term challenges due to economic pressures [50][52] Question: What is the anticipated EBITDA disruption from the Orchard Inn repositioning? - Expected EBITDA disruption is about $0.5 million, with a goal of achieving a $250 ADR lift for the Orchards [81][83]