DiamondRock Hospitality
DRHMarket price data through August 3, 2026.
Performance
Aug 2021 – Aug 2026
Track record
How this pick has done since Benson first called it.
- Benson Return
- +43%
- 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
- 4 months
- How long Benson has been tracking this pick.
About DiamondRock Hospitality
DiamondRock Hospitality owns 34 premium hotels and resorts across the U.S., with about 9,400 rooms in top vacation spots and big gateway cities. Think of them as the landlord behind well-known hotel brands. They earn money from travelers whether guests book a Marriott, a Westin, or a trendy boutique hotel, giving them a healthy mix of business trips and vacation demand.
The case for and against
Both sides of the story, in plain English.
- Blowout Quarter
Second quarter profit soared 136% to 90.5 million dollars, and earnings per share more than doubled to 44 cents. Revenue per available room climbed 7% while hotel expenses grew just 1.8%, so more of every dollar guests spend fell straight to the bottom line. Hotel profit margins expanded to 35.8%.
- Bigger Payday
Management raised the quarterly dividend 22% to 11 cents a share and lifted full-year guidance, now expecting Adjusted FFO per share of 1.18 to 1.23 dollars. They also have 299 million dollars left in a fresh buyback program. Free cash flow rose 30% over the past year, which is what funds all of it.
- Chicago Boost
A big chunk of the quarter's margin jump came from a one-time property tax settlement in Chicago worth about 6.9 million dollars. Strip that out and margins grew 239 basis points instead of 457, and earnings power per share was 41 cents, not 44. Real, but not as dramatic as the headline suggests.
- Travel Sensitivity
Hotels live and die by the economy. The World Cup gave several markets a temporary lift this quarter that will not repeat, and the company carries 1.1 billion dollars in debt at a 4.9% interest rate. If travel slows, room rates fall fast while those loan payments and hotel costs stay right where they are.
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How to read this page
This automated research summary uses Financial Modeling Prep market data through 2026-08-03. Model signals, scores, and risk labels can change and may be incomplete or wrong.
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