DRH

Real Estate

DiamondRock Hospitality Company · REIT - Hotel & Motel · $3B

UQS Score — Balanced Preset
47.2
Below Average

DiamondRock Hospitality Company scores 47.2/100 using the Balanced preset.

UQS vs Real Estate Sector
DRH
47.2
Sector avg
38.4
Quality
Neutral
Moat
Weak
Growth
Neutral
Risk
Good
Valuation
Good

What is DiamondRock Hospitality Company?

DiamondRock Hospitality is a self-advised hotel REIT owning over 30 premium properties across top gateway and resort markets.

DiamondRock generates revenue by owning and leasing premium hotels operated under leading global brand families and boutique lifestyle concepts. Its portfolio spans geographically diversified gateway cities and destination resort locations, targeting both business and leisure travelers.

Is DRH a Good Stock to Buy?

UQS Score rates DRH as Below Average overall, with Valuation standing out as the lone bright spot.

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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

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Pro Analysis

DRH — Score History

3540455055Jul 11Jul 29Aug 16Sep 3Sep 21Oct 8
Score changes· 11 most recent
DateUQSQualityMoatGrowthRiskValueChange
Jul 31, 202647.249.515.042.973.377.0+2.6
Jul 25, 202644.646.215.042.264.774.0-0.1
Jul 24, 202644.746.515.042.264.774.5+0.2
Jul 23, 202644.546.215.042.264.773.90.0
Jul 22, 202644.546.115.042.264.773.6-0.1
Jul 21, 202644.646.415.042.264.774.2-0.1
Jul 18, 202644.746.715.041.964.774.6-0.3
Jul 17, 202645.047.115.041.964.775.5+0.1
Jul 16, 202644.947.115.041.964.775.3-0.2
Jul 15, 202645.147.415.041.964.775.8-0.1

DRH — Pillar Breakdown

◆

Quality

— 49.5/100 (25%)

DiamondRock Hospitality Company has average quality metrics, with room for improvement in margins or capital efficiency.

Return on EquityModerate

Profitability relative to shareholders' equity.

Operating ProfitabilityWeak

Ability to convert revenue into operating profit.

Net ProfitabilityModerate

Bottom-line profit as a share of revenue.

Cash GenerationStrong

Free cash flow relative to market value.

▲

Growth

— 42.9/100 (20%)

DiamondRock Hospitality Company shows steady but unspectacular growth, typical for mature companies.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthStrong

Year-over-year earnings per share growth.

Forward Revenue OutlookWeak

Analyst consensus for future revenue growth.

Forward EPS GrowthStrong

Analyst consensus for future earnings growth.

◈

Risk

— 73.3/100 (15%)

DiamondRock Hospitality Company maintains a reasonable risk profile with manageable debt levels.

Debt/EquityStrong

Total debt relative to shareholder equity.

Current RatioStrong

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageWeak

Earnings capacity relative to interest payments.

●

Valuation

— 76.9/100 (15%)

DiamondRock Hospitality Company appears attractively valued relative to its earnings, cash flows, and sector peers.

Earnings YieldModerate

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowStrong

How many years of FCF the market cap represents.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorStrong

Enterprise value multiple relative to sector median.

⬡

Moat

— 15/100 (25%)

DiamondRock Hospitality Company operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for DRH.

Score Composition

Quality
49.5×25%12.4
Growth
42.9×20%8.6
Risk
73.3×15%11.0
Valuation
76.9×15%11.5
Moat
15.0×25%3.8
Total
47.2Below Average

Financial Data

More Stock Analysis

How is the DRH UQS Score Calculated?

The UQS (Unified Quality Score) for DiamondRock Hospitality Company is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses DiamondRock Hospitality Company's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether DiamondRock Hospitality Company is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.