DiamondRock Hospitality

DRH · Nasdaq · Real Estate · Financials, fiscal 2016 to 2025

DRH · Last close · November 6, 2026

$14.04

DiamondRock Hospitality's revenue fell 0.8% to $1.1 billion in fiscal 2025. Its net margin was 9.1%, up from 4.2% a year earlier. Free cash flow was $162 million, up 13.5%. It paid out $135 million in dividends and buybacks, 84% of free cash flow. The diluted share count fell 1.4%.

DIAMONDROCK HOSPITALITY CO Latest fiscal year ended December 31, 2025 10-K filed February 27, 2026 · 0001298946-26-000013 Updated November 5, 2026

Revenue

$1.1B

0.8%

Net margin

9.1%

4.8 pts

Net income

$101M

111.1%

Free cash flow

$162M

13.5%

Return on capital

6.3%

2.2 pts

Market cap

$2.9B

Nov 6 close

P/E

18.0x

On $0.78 EPS, 4 qtrs

Net margin is net income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

Charts show fiscal years, from the 10-K filings.

What DiamondRock Hospitality does

DiamondRock Hospitality is a real estate investment trust, or REIT, that owns premium hotels and resorts in the United States. As of December 31, 2025 it owned 35 hotels with 9,595 rooms in 26 markets. It targets destination markets where new supply is limited, markets that add geographic variety, and markets it expects to see strong demand growth.

It is an owner, not an operator. Third parties run all of its hotels, and it receives the operating profit or loss after paying management fees, plus brand fees in some cases. It operates nearly 40% of its portfolio as independent hotels, and the rest operate under brands from Marriott International, Hilton Worldwide or IHG Hotels & Resorts.

It began operating in July 2004 and became a public reporting company in May 2005. Its strategy is active asset management and disciplined use of capital. Depending on its cost of capital, it plans to invest in improvements, buy hotels, or take other steps.

Its biggest risks, as it describes them

A business model focused on premium full-service hotels that can swing sharply.
Economic conditions and other factors that hurt the lodging industry.
Seasonal swings in hotel results.
Online travel intermediaries and alternative lodging, and business travel falling as technology replaces trips.
Long-term hotel management and franchise agreements, and ground leases that limit sales of hotels.

From DiamondRock Hospitality's annual report on Form 10-K, filed February 27, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new annual report.

Income statement

Revenue and net income

US$ billions, fiscal years; net losses in red. Revenue on the left axis, net income on the right; zero is the same line on both.

Revenue (left axis)Net income (right axis)

Gross profit, R&D and operating income

US$ billions, fiscal years. Gross profit is revenue minus the cost of what was sold; research and development is one of the costs paid from it; what remains after all operating costs is operating income. Losses in red.

Gross profitResearch and developmentOperating income

Margins

Percent of revenue

GrossOperatingNetFree cash flow

From fiscal 2016 to 2025, earnings per share fell 2.8% a year and net income 1.4% a year, as new shares raised the share count by 3% and diluted each share's earnings.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Balance sheet

Cash and debt

US$ billions, at each fiscal year end. Debt includes finance leases.

Cash and short-term investmentsDebt

Assets, liabilities and equity

US$ billions, at each fiscal year end. Assets equal liabilities plus equity; negative equity in red.

Total assetsTotal liabilitiesShareholders' equity

Debt and liquidity ratios

Times. Debt to equity, current assets over current liabilities, and net debt over EBITDA (a full year's).

Debt to equityCurrent ratioNet debt to EBITDA

Five years at a glance

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	39	68	122	81	68
Debt incl. finance leases	1,067	1,186	1,177	1,127	1,131
Net debt (negative means net cash)	1,029	1,118	1,055	1,046	1,063
Net debt to EBITDA	—	7.4x	6.9x	9.1x	6.5x
Debt to equity	0.7x	0.8x	0.7x	0.7x	0.8x
Interest coverage	−4.2x	3.9x	2.3x	1.8x	2.6x
Current ratio	—	—	—	—	—
Quick ratio	—	—	—	—	—

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Cash flow

Cash from operations, capital spending and free cash flow

US$ billions, fiscal years. Free cash flow is cash from operations minus capital spending; negative years in red.

Cash from operationsCapital spendingFree cash flow

Stock-based compensation and buybacks

US$ billions, fiscal years. Shares paid to employees (stock-based compensation, a cost that uses no cash) against cash spent buying shares back. Buybacks that only match it leave the share count roughly where it was.

Stock-based compensationShare buybacks

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, millions

Projections

Project DiamondRock Hospitality's revenue, net income and earnings per share five years ahead in a bull, a base and a bear case with your own figures, and see the share prices your P/E estimates give them, or value it with a discounted cash flow model. Every projected figure is yours: it is not a forecast of ours.

Open DiamondRock Hospitality's projections

Insider trades

Over the 12 months between November 7, 2025 and November 6, 2026, 1 insider bought $4,421 of DiamondRock Hospitality shares on the open market, and 3 insiders sold $486,520.

Buys and sells by month

US$ millions, open-market purchases (up) and sales (down) by officers, directors and 10% owners in each month.

BoughtSold

Date	Insider	Trade	Shares	Price	Value	Filing
Jul 14, 2026	Stephanie LeporiDirector	Bought	111	$12.08	$1,346	Form 4
Jun 12, 2026	Kathleen MerrillDirector	Sold	20,000	$11.88	$237,600	Form 4
May 13, 2026	Michael A. HartmeierDirector	Sold	20,000	$10.46	$209,200	Form 4
Apr 14, 2026	Stephanie LeporiDirector	Bought	131	$10.17	$1,335	Form 4
Mar 3, 2026	Steve SpiertoSVP, Chief Accounting Officer	Sold	4,000	$9.93	$39,720	Form 4
Jan 14, 2026	Stephanie LeporiDirector	Bought	188	$9.26	$1,740	Form 4

Open-market purchases and sales by officers, directors and 10% owners, from their Form 4 filings with the SEC: one row per person, day and filing, at the day's average price. Grants, option exercises and shares withheld for tax aren't counted. Insiders buy and sell for many reasons, such as taxes, spreading their savings or a plan set up months earlier, so a trade on its own says little about where a company is heading. For information only, not investment advice. Insider trades at all companies

Indicators

Four widely used measures, worked out from the company's filings. The cutoffs are the ones their authors or users go by, not a verdict of ours.

Indicator	FY23	FY24	FY25
Piotroski F-score	—	—	—
Rule of 40	21.4%	17.8%	13.6%
Altman Z''	—	—	—
Accruals ratio	−4.7%	−5.5%	−4.6%

Piotroski F-score: how many of nine simple tests of profitability, funding and efficiency the company passed in the year (Piotroski, 2000); 8 or 9 is strong, 0 to 2 weak. Rule of 40: revenue growth plus free cash flow margin; software investors treat 40% or more as the bar. Altman Z'': working capital, retained earnings, operating income and equity weighed against assets and liabilities (Altman, 1995); Altman puts above 2.6 in the safe zone and below 1.1 in the distress zone. Accruals ratio: net income minus cash from operations, over average total assets; lower means profit is backed by cash.

The nine F-score tests

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Fail	Fail	Pass
Cash from operations exceeds net income	Pass	Pass	Pass
Debt fell relative to assets	Pass	Pass	Fail
Current ratio rose	—	—	—
Share count didn't rise	Pass	Pass	Pass
Gross margin rose	—	—	—
Revenue rose relative to assets	Fail	Pass	Pass
F-score	—	—	—

Companies that report no gross profit are scored on the other eight.

Compare

Put DiamondRock Hospitality side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
DiamondRock Hospitality	FY25	−0.8%	—	14.5%	6.3%	6.5x	—
Xenia Hotels & Resorts	FY25	3.8%	10.0%	8.3%	4.2%	5.4x	—	Compare
Sunstone Hotel Investors	FY25	6.0%	—	8.2%	2.8%	3.8x	—	Compare
Apple Hospitality REIT	FY25	−1.3%	18.2%	20.0%	5.3%	3.6x	—	Compare
Pebblebrook Hotel Trust	FY25	1.5%	3.0%	10.3%	0.7%	—	—	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score under Indicators.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	897	870	864	938	300	567	1,002	1,075	1,130	1,120
Revenue growth	—	−3.0%	−0.7%	8.6%	−68.1%	89.4%	76.6%	7.3%	5.1%	−0.8%
Gross profit	—	—	—	—	—	—	—	—	—	—
Research and development	—	—	—	—	—	—	—	—	—	—
Operating income	158	140	—	—	—	—	—	—	—	—
Net income	115	92	88	184	−394	−195	109	86	48	101
Diluted EPS (US$)	0.57	0.46	0.43	0.90	−1.97	−0.96	0.47	0.36	0.18	0.44
Diluted shares (millions)	202	202	206	203	202	212	213	212	211	208
Cash flow
Cash from operations	216	202	218	193	−84	−2	206	238	224	244
Capital expenditure	103	97	115	—	—	—	68	86	82	82
Free cash flow	113	105	102	—	—	—	139	151	143	162
Dividends paid	101	100	103	102	26	0	6	32	26	98
Share buybacks	7	0	32	43	10	0	12	2	26	37
Acquisitions	0	0	0	0	0	0	0	0	0	0
Stock-based compensation	5	6	6	6	7	9	8	9	12	7
Balance sheet at fiscal year end
Cash and short-term investments	243	184	44	122	112	39	68	122	81	68
Debt incl. finance leases	920	938	978	1,090	1,049	1,067	1,186	1,177	1,127	1,131
Total assets	3,051	3,101	3,198	3,426	3,147	2,965	3,208	3,239	3,172	3,004
Total liabilities	1,214	1,267	1,307	1,505	1,428	1,444	1,611	1,590	1,573	1,547
Shareholders' equity	1,837	1,834	1,883	1,912	1,711	1,515	1,590	1,642	1,590	1,448
Margins and ratios
Gross margin	—	—	—	—	—	—	—	—	—	—
Operating margin	17.6%	16.1%	—	—	—	—	—	—	—	—
Net margin	12.8%	10.6%	10.2%	19.6%	−131.7%	−34.3%	10.9%	8.0%	4.2%	9.1%
Free cash flow margin	12.6%	12.0%	11.9%	—	—	—	13.8%	14.1%	12.6%	14.5%
Rule of 40 (growth + FCF margin)	—	9.1%	11.1%	—	—	—	90.4%	21.4%	17.8%	13.6%
Return on capital	5.4%	4.9%	4.7%	7.9%	−10.5%	−4.7%	5.6%	5.6%	4.2%	6.3%
Return on equity	6.3%	5.0%	4.7%	9.7%	−21.8%	−12.1%	7.0%	5.3%	3.0%	6.7%
Return on assets	3.6%	3.0%	2.8%	5.5%	−12.0%	−6.4%	3.5%	2.7%	1.5%	3.3%
Net debt to EBITDA	2.7x	3.2x	3.9x	3.8x	—	—	7.4x	6.9x	9.1x	6.5x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: DiamondRock Hospitality's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with DiamondRock Hospitality.