DiamondRock Hospitality Valuation Revisited: Recent Analyst Upgrades and Long-Term Growth Forecasts

DiamondRock Hospitality (DRH) has recently seen analyst upgrades, with Deutsche Bank shifting its rating to Buy and highlighting company-specific catalysts tied to revenue and EBITDA expectations through 2027. The share price has increased 22.41% over the past 90 days and 9.21% over the past year, trading at $9.45. The fair value is estimated at $10.19, suggesting a modest discount, driven by the ongoing trend of millennials and Gen Z prioritizing travel experiences and the expansion of flexible, remote, and hybrid work. However, softer resort and group RevPAR, higher taxes and wage costs in key cities, could pressure margins and earnings.