DiamondRock Hospitality (NYSE:DRH) Announces Earnings Results, Beats Expectations By $0.22 EPS

Posted by Geri Gentry on Jul 31st, 2026

DiamondRock Hospitality (NYSE:DRH – Get Free Report) issued its quarterly earnings results on Thursday. The real estate investment trust reported $0.44 earnings per share for the quarter, topping analysts’ consensus estimates of $0.22 by $0.22, Briefing.com reports. The firm had revenue of $318.29 million during the quarter, compared to analysts’ expectations of $314.98 million. DiamondRock Hospitality had a net margin of 5.69% and a return on equity of 4.04%. DiamondRock Hospitality’s quarterly revenue was up 4.1% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.35 EPS. DiamondRock Hospitality updated its FY 2026 guidance to 1.180-1.230 EPS.

DiamondRock Hospitality Stock Performance

NYSE DRH traded up $0.34 on Friday, hitting $13.24. 1,706,479 shares of the company’s stock were exchanged, compared to its average volume of 2,322,512. The firm has a market cap of $2.71 billion, a price-to-earnings ratio of 52.90, a P/E/G ratio of 4.50 and a beta of 0.98. The firm’s 50-day moving average price is $12.00 and its two-hundred day moving average price is $10.60. DiamondRock Hospitality has a fifty-two week low of $7.45 and a fifty-two week high of $13.48. The company has a debt-to-equity ratio of 0.70, a current ratio of 1.64 and a quick ratio of 1.64.

DiamondRock Hospitality Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 14th. Shareholders of record on Wednesday, September 30th will be issued a $0.11 dividend. The ex-dividend date of this dividend is Wednesday, September 30th. This represents a $0.44 dividend on an annualized basis and a yield of 3.3%. This is a boost from DiamondRock Hospitality’s previous quarterly dividend of $0.09. DiamondRock Hospitality’s dividend payout ratio is presently 76.60%.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on DRH. Barclays increased their target price on shares of DiamondRock Hospitality from $10.00 to $12.00 and gave the stock an “equal weight” rating in a research note on Monday, June 1st. Truist Financial upped their price objective on DiamondRock Hospitality from $11.00 to $12.00 and gave the company a “buy” rating in a research note on Tuesday, May 26th. Wells Fargo & Company increased their price objective on DiamondRock Hospitality from $12.00 to $13.00 and gave the stock an “equal weight” rating in a research report on Thursday, July 23rd. Bank of America lifted their target price on DiamondRock Hospitality from $12.50 to $13.00 and gave the company a “buy” rating in a research note on Monday, July 20th. Finally, Stifel Nicolaus boosted their target price on DiamondRock Hospitality from $12.50 to $13.25 and gave the company a “hold” rating in a report on Friday. Four research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $12.22.

View Our Latest Stock Analysis on DiamondRock Hospitality

Insider Activity at DiamondRock Hospitality

In other news, Director Michael A. Hartmeier sold 20,000 shares of the firm’s stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $10.46, for a total value of $209,200.00. Following the completion of the sale, the director directly owned 95,354 shares of the company’s stock, valued at $997,402.84. This trade represents a 17.34% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Kathleen Merrill sold 20,000 shares of DiamondRock Hospitality stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $11.88, for a total value of $237,600.00. Following the completion of the sale, the director owned 84,335 shares in the company, valued at approximately $1,001,899.80. This trade represents a 19.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.90% of the stock is owned by company insiders.

Institutional Investors Weigh In On DiamondRock Hospitality

Institutional investors have recently made changes to their positions in the stock. Metis Global Partners LLC grew its holdings in DiamondRock Hospitality by 3.6% during the 4th quarter. Metis Global Partners LLC now owns 48,193 shares of the real estate investment trust’s stock worth $432,000 after acquiring an additional 1,667 shares in the last quarter. Lazard Asset Management LLC increased its position in shares of DiamondRock Hospitality by 3.1% during the 3rd quarter. Lazard Asset Management LLC now owns 60,199 shares of the real estate investment trust’s stock valued at $479,000 after purchasing an additional 1,806 shares during the period. M&T Bank Corp boosted its position in shares of DiamondRock Hospitality by 9.4% in the 2nd quarter. M&T Bank Corp now owns 21,298 shares of the real estate investment trust’s stock valued at $163,000 after purchasing an additional 1,833 shares during the period. Daiwa Securities Group Inc. grew its position in DiamondRock Hospitality by 2.7% during the 2nd quarter. Daiwa Securities Group Inc. now owns 72,809 shares of the real estate investment trust’s stock worth $558,000 after purchasing an additional 1,880 shares in the last quarter. Finally, State of Wyoming lifted its holdings in shares of DiamondRock Hospitality by 9.0% in the fourth quarter. State of Wyoming now owns 24,658 shares of the real estate investment trust’s stock valued at $221,000 after purchasing an additional 2,044 shares in the last quarter.

Key DiamondRock Hospitality News

Here are the key news stories impacting DiamondRock Hospitality this week:

Positive Sentiment: Strong second-quarter results: DiamondRock reported earnings of $0.44 per share, double the $0.22 consensus estimate, while revenue rose 4.1% year over year to $318.3 million, exceeding expectations of $315.0 million. DiamondRock Hospitality second-quarter earnings report
Positive Sentiment: FFO exceeded estimates: Second-quarter funds from operations came in at $0.44 per share versus the $0.37 consensus estimate and $0.35 a year earlier, indicating improved operating performance for the hotel REIT. DiamondRock Q2 FFO and revenue results
Positive Sentiment: Full-year outlook raised: DRH issued 2026 EPS guidance of $1.18 to $1.23, above the $1.09 analyst consensus, signaling increased confidence in its operating outlook. DiamondRock Hospitality second-quarter 2026 results
Positive Sentiment: Dividend increased: The quarterly dividend was raised to $0.11 per share from $0.09, a 22.2% increase, representing an annualized yield of approximately 3.3%. The dividend is payable October 14 to shareholders of record September 30.
Neutral Sentiment: Analyst target lifted but rating remains Hold: Stifel Nicolaus raised its price target from $12.50 to $13.25, implying only about 0.6% upside based on the cited share price, and maintained a Hold rating. Benzinga analyst price target update

DiamondRock Hospitality Company Profile

(Get Free Report)

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.