Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
DiamondRock Hospitality's preferred shares are unlikely to be called in 2025 despite their high 8.25% coupon. The company has restructured its debt, extended maturities, and maintains a strong balance sheet with low leverage (25.7%). Management prioritizes flexibility for potential acquisitions, making retention of preferred equity attractive over redemption or buybacks.
DiamondRock Hospitality (DRH) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
DiamondRock Hospitality Company (NYSE:DRH ) Q2 2025 Earnings Conference Call August 7, 2025 9:00 PM ET Company Participants Briony R. Quinn - Executive VP, CFO & Treasurer Jeffrey John Donnelly - CEO & Director Justin L.
The headline numbers for DiamondRock Hospitality (DRH) give insight into how the company performed in the quarter ended June 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
DiamondRock Hospitality is a diversified hotel REIT with strong asset coverage and solid debt management. The company's financials show a forward FFO yield of 12.9% and market-adjusted asset coverage of 266%. Applying Moody's methodology, DRH's balance sheet metrics support a Baa1 rating, but sector risks lower the final credit score.
Investors interested in REIT and Equity Trust - Other stocks are likely familiar with DiamondRock Hospitality (DRH) and Gaming and Leisure Properties (GLPI). But which of these two companies is the best option for those looking for undervalued stocks?
DiamondRock Hospitality (DRH) demonstrates solid financials, with strong asset coverage and a forward FFO yield of 13.23% on common stock. The preferred stock (DRH.PR.A) offers an attractive 8.32% stripped yield and a 12.34% yield to call, outperforming many rated preferreds. Moody's methodology assigns DRH a Baa3-equivalent credit rating, reflecting decent financial strength and prudent debt management.
DiamondRock Hospitality Company (NYSE:DRH ) Q1 2025 Earnings Conference Call May 2, 2025 11:00 AM ET Company Participants Briony Quinn - CFO Jeff Donnelly - CEO Justin Leonard - President and COO Conference Call Participants Smedes Rose - Citi Duane Pfennigwerth - Evercore ISI Michael Bellisario - Baird Chris Woronka - Deutsche Bank Floris van Dijkum - Compass Point LLC Jack Armstrong - Wells Fargo Chris Darling - Green Street Stephen Grambling - Morgan Stanley Operator Hello, everyone, and welcome to DiamondRock Hospitality Company First Quarter 2025 Earnings Conference Call. At this time all participants are in a listen-only mode.
The headline numbers for DiamondRock Hospitality (DRH) give insight into how the company performed in the quarter ended March 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
DiamondRock Hospitality (DRH) came out with quarterly funds from operations (FFO) of $0.19 per share, beating the Zacks Consensus Estimate of $0.17 per share. This compares to FFO of $0.17 per share a year ago.
DiamondRock Hospitality (DRH) witnessed a jump in share price last session on above-average trading volume. The latest trend in FFO estimate revisions for the stock doesn't suggest further strength down the road.