DiamondRock Hospitality Company is a self-advised real estate investment trust that owns a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets.
FAIL · Does not pass the screen
12.27 USD
Screen close, 2026-09-21 · not a live quote
Screened 2026-09-21 · the tape above runs as of 13:00 UTC · two dates, stated on purpose · verdict and workings shown in full · never trimmed
PRICE · FAIR-VALUE RANGE1M3M6MYTD1Y3Y5Y
What this means: price 12.27 against the desk's fair-value range, base estimate 10.21, over the last year.
Positioning no disclosures inside 60 days, left as found
Options no verdict drawn today, left as found
Ethical does not pass the values gate
Price12.27 USD
Fair value10.21
Ethical score70.0/100
Our investment reviews on this name
2026-08-27Read Distribution12.62-2.8% to today ✓
2026-07-02Read Markup11.92+2.9% to today ✓
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
DiamondRock Hospitality Company holds its Markdown at $12.27. The statistical read favours the sellers, held for 46 days.
As held on the ledger · 2026-09-21
Phase
Markdown · caution
Quantitative state
The statistical read favours the sellers, held for 46 days
Price at the screen
$12.27
Valuation
17.04 trailing · 20.80 forward price to earnings
Values screen
FAIL· score 70.0
Beta
0.99
The Workings
Five Screens, Shown in Full
Does not pass. Debt ratio
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
39.48%
Below 33%
Interest-bearing debt is 39.5% of its assets, above the one-third ceiling the screen allows.
Fail
Interest-bearing cash
0.00%
Below 33%
Cash held in interest-bearing accounts and securities is 0.0% of assets, under the one-third limit.
Pass
Receivables
6.85%
Below 49%
Money owed to the company is 6.9% of assets, under the 49% limit.
Pass
Revenue purity
0.60%
Below 5%
Only 0.6% of revenue comes from non-compliant sources, under the 5% line.
Pass
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
Fair value range in USD, drawn from the 2026-09-21 screen. The gold marker is the market price at the same screen. The price runs 16.8% above the base estimate.
Third-party analyst targets: 13 covering, consensus Buy. The average target sits +14% from the screen price.
Reading the gap · Our more conservative model reads it as fully-to-richly valued here, while the Street is more bullish: a quality-at-a-fair-price name rather than a deep-value one.
Price History & Projections
Where it has been, where the models see it going. History from market close data; projection points are our fair-value estimates and third-party analyst targets, dated to the 2026-09-21 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Hotel Portfolio Lacks Any Valuation Cushion
Picture a resort filling rooms at last summer's rates while new bookings slow. DiamondRock owns 34 premium hotels in leisure spots and gateway cities, yet its shares sit 14% above our fair value at $12.55. Revenue growth of just 1%, a forward P/E of 22.4x, a 9% profit margin and 7% ROE give no reason to step in when the opportunity rating is none.
The ethical screen clears, yet that alone does not create an investment. Hotels are cyclical by nature and this one shows no moat or earnings power to justify paying above fair value. Low growth paired with a stretched multiple leaves little room for error when travel spending turns.
Risk sits in the hotel cycle itself. Peak occupancy and rates can mask thin returns, and what looks like stability today can become a value trap once demand cools. Analysis, not advice.
The risks · The main risks here are ordinary market swings and the chance our fair-value read proves too optimistic.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
DRH trades on Nasdaq. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The framework has shifted from markup to distribution since the last review. Smart money appears to be selling into strength. Institutional holders may be rotating out. Price has moved up 0.6% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 24% above its long-term trend line with momentum reading bullish. Over the past year the shares are up 56%. Our forward projection puts the odds of a 10% gain over the next month near 22%. The street (13 analysts) rates it buy, with a mean price target of $11.
2026-07-26Markup$12.55+5.3%Entry 4
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved up 5.3% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 24% above its long-term trend line with momentum reading bullish. Over the past year the shares are up 56%. Our forward projection puts the odds of a 10% gain over the next month near 22%. The street (13 analysts) rates it buy, with a mean price target of $11.
2026-07-18Markup$11.92+0.0%Entry 3
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen. The risk-adjusted return profile shows good risk-adjusted returns. Our composite framework grades it B, carrying a low risk profile. Technically it is holding around 24% above its long-term trend line with momentum reading bullish. Over the past year the shares are up 56%. Our forward projection puts the odds of a 10% gain over the next month near 22%. The street (13 analysts) rates it buy, with a mean price target of $11.
2026-07-03Markup$11.92+0.0%Entry 2
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Price has moved down 0.0% since our last review. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows good risk-adjusted returns.
2026-07-02Markup$11.92Entry 1
The framework reads markup. Price is trending higher with momentum. The crowd has caught on and buyers are in control. Ethical screening: PASS with passing ethical screen (70). The risk-adjusted return profile shows good risk-adjusted returns.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.
