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DiamondRock Hospitality logo

DiamondRock Hospitality

DRH
$14.38
▲ +53%since Benson's first pick

Market price data through November 12, 2026.

Performance

Nov 2021 – Nov 2026

Benson's first pick
$6$9$12$15Nov 2021Feb 2023May 2024Aug 2025Nov 2026Benson picked · $9.36
Model signal
Buy
What Benson's model currently says about this stock.
Benson rating
4.3 / 5
Benson's overall conviction in this stock right now.
Risk
Low risk
How bumpy the ride tends to be with this stock.

Track record

How this pick has done since Benson first called it.

Benson Return
+53%
How much this stock is up since Benson first picked it — measured from the price at the time of that first pick, not from today.
First pick price
~$9
Roughly what one share cost when Benson first picked this stock. This is the starting line for the Benson Return.
Tracking since
March 2026
The month this stock first became a Benson pick.
Tracking duration
7 months
How long Benson has been tracking this pick.

About DiamondRock Hospitality

DiamondRock Hospitality owns 35 premium hotels and resorts across the U.S., with about 9,500 rooms in vacation hot spots and big gateway cities. Think of them as the landlord behind familiar names like Marriott and Westin, plus trendy independent boutique resorts. In October they added a 79-room beach resort in Rehoboth Beach, Delaware.

The case for and against

Both sides of the story, in plain English.

Bull case
  • Packed and Pricey

    Hotels were 77.8% full this quarter, and the average nightly rate climbed to about 290 dollars. Each available room earned 6.6% more than a year ago, and profit from running the hotels jumped 12.5% to 91.7 million dollars. Net income rose 66% to 33.3 million dollars as both individual travelers and conference groups showed up.

  • Raising the Bar

    Management raised its full-year outlook again and now expects 1.24 to 1.26 dollars per share in cash earnings, up from 1.18 to 1.23 dollars. The quarterly dividend jumped 22% to 11 cents, with an extra year-end payout expected. With 400 million dollars of untapped credit and 140 million in cash, they just bought a Delaware beach resort for 31 million dollars.

Bear case
  • Costs Creeping Up

    Hotel running costs rose 3.9% this quarter, much faster than the roughly 1% pace for the year so far. Wages, insurance, and upkeep rarely get cheaper. If room prices stop climbing as fast, those rising bills will start eating into the profit gains.

  • Travel Sensitivity

    Hotels feel a slowdown fast, because trips are one of the first things people and companies cut. The company owes 1.1 billion dollars at an average 5.1% interest rate and expects to pay about 59 million dollars in interest this year. If travel cools, room rates drop quickly while those loan payments stay put.

How to read this page

This automated research summary uses Financial Modeling Prep market data through 2026-11-12. Model signals, scores, and risk labels can change and may be incomplete or wrong.

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