DiamondRock Hospitality (DRH) Pursues Acquisition: Reasons for the Upgrade
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 17 2025
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Source: NASDAQ.COM
Zacks Rank Upgrade: DiamondRock Hospitality (DRH) has been upgraded to a Zacks Rank #2 (Buy) due to an upward trend in earnings estimates, indicating a positive outlook for the company's stock price.
Earnings Estimate Revisions: The Zacks rating system emphasizes the importance of earnings estimate revisions, which have shown a strong correlation with near-term stock price movements, making DRH a solid candidate for potential market-beating returns.
Analyst Consensus: Over the past three months, the Zacks Consensus Estimate for DRH has increased by 2.2%, reflecting analysts' growing confidence in the company's earnings potential.
Investment Opportunity: The Zacks Rank system maintains a balanced approach to stock ratings, with only the top 20% of stocks receiving a "Buy" or "Strong Buy" rating, positioning DRH favorably for investors looking for growth opportunities.
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Analyst Views on DRH
Wall Street analysts forecast DRH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DRH is 9.97 USD with a low forecast of 8.50 USD and a high forecast of 11.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
3 Buy
6 Hold
0 Sell
Moderate Buy
Current: 9.040
Low
8.50
Averages
9.97
High
11.00
Current: 9.040
Low
8.50
Averages
9.97
High
11.00
About DRH
DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT). The Company owns a portfolio of geographically diversified hotels concentrated in leisure destinations and gateway markets. Its hotels are owned by subsidiaries of its operating partnership, DiamondRock Hospitality Limited Partnership. Its primary business is to acquire, own, renovate and asset manage hotel properties in the United States. The Company's hotel properties include Chico Hot Springs Resort, Lake Austin Spa Resort, Kimpton Shorebreak Fort Lauderdale Beach Resort, Tranquility Bay, Bourbon Orleans Hotel, Henderson Beach Resort, Henderson Park Inn, Cavallo Point, Kimpton Palomar Phoenix, L'auberge De Sedona, Orchards Inn, Westin San Diego, and Havana Cabana, among others. It owns over 36 hotels and resorts with approximately 9,600 rooms. The Company has positioned its portfolio to be operated both under global brand families as well as independent boutique hotels in the lifestyle segment.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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DiamondRock Hospitality Announces 2025 Tax Treatment for Distributions
- Dividend Distribution Overview: DiamondRock Hospitality announced the 2025 distribution details for common and Series A preferred stock, including four distributions of $0.08 per common share and $0.515625 per preferred share, demonstrating the company's ongoing cash flow and shareholder return capabilities.
- Distribution Schedule: The record dates for common stock distributions are March 28, June 30, September 30, and December 31, while preferred stock record dates are March 20, June 20, September 19, and December 19, ensuring timely returns for shareholders.
- Tax Advisory: The company encourages shareholders to consult their personal tax advisors regarding specific tax treatment, reflecting its commitment to shareholder interests and compliance.
- Company Overview: DiamondRock Hospitality is a self-advised REIT owning 35 premium hotels and resorts with approximately 9,600 rooms, strategically positioned in leisure destinations and top gateway markets, enhancing its competitive edge.
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