/
DiamondRock Hospitality Company is a self-managed and self-administered lodging-focused real estate investment trust ("REIT") that owns a portfolio of premium hotels and resorts. As of December 31, 2025, we owned 35 hotels with 9,595 rooms located in 26 markets in the United States.
14.51% operating margin is respectable but not wide. ROIC at 4.70%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue declined 0.8% YoY. The question is whether this is cyclical or a structural shift.
Net debt of $1.15B represents 7.1x FCF, leverage limits flexibility.
Profitability & Returns
Revenue (TTM)
$1.12B
▼ -0.8% YoY
Net Income (TTM)
$104M
▲ +111.1% YoY
Op. Margin
14.81%
▲ +4.7pp YoY
ROIC
4.90%
▲ +0.9pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$161M
▲ +13.5% YoY
Op. Cash Flow (TTM)
$238M
▲ +8.6% YoY
Net Debt
$1.16B
Cash & Equiv.
$39M
5Y CAGR: +30.2%
5Y CAGR: +9.2%
Continue Research