Diamondrock Hospitality Company DRH

Competitive advantage analysis · real-estate

REIT Specialized
Overall moat score
66/100
Moderate

About Diamondrock Hospitality Company

DiamondRock Hospitality Company is a self-advised real estate investment trust that owns a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets. The Company currently owns 36 premium quality hotels and resorts with approximately 9,600 rooms. The Company has strategically positioned its portfolio to be operated both under leading global brand families as well as … Full DRH analysis →

Competitive advantage assessment

Key strengths

  • Conservative Leverage Leverage is conservative (score 0.79), providing refinancing flexibility.
  • Strong NOI Margins NOI margins are strong (score 0.93), demonstrating rent pricing power.

Key risks

  • Dilutive or Undisciplined Growth Growth discipline is questionable (score 0.07), raising dilution concerns.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

Upgrade to unlock the signals and evidence behind each defense.

Premium access

Unlock full defense analysis

Get key signals, strengths, and risks for every moat dimension.

Upgrade to Premium Unlock all moat defenses and evidence.

Rent Pricing Power

Strong
76

Where DRH ranks in REIT - Hotel & Motel

Diamondrock Hospitality Company ranks #6 of 19 scored companies in REIT - Hotel & Motel by moat score — the top 32%. The widest moat in the group is Apple Hospitality REIT, Inc. (APLE) at 94/100.

Moat scores for companies ranked near DRH in REIT - Hotel & Motel
# Company Moat score Rating
2 Chatham Lodging Trust (REIT) CLDT 80/100 Strong
3 Host Hotels & Resorts, Inc. HST 69/100 Moderate
4 RLJ Lodging Trust RLJ 68/100 Moderate
5 Service Properties Trust - Shar SVC 66/100 Moderate
6 Diamondrock Hospitality Company DRH 66/100 Moderate
7 Ryman Hospitality Properties, I RHP 63/100 Moderate
8 Xenia Hotels & Resorts, Inc. XHR 59/100 Moderate
9 Summit Hotel Properties, Inc. INN 58/100 Moderate
10 Sotherly Hotels Inc. SOHO 54/100 Moderate

See every Real Estate Investment Trusts company ranked by moat score →

How DRH scores on the REIT Specialized defenses

Rent Pricing Power

Score 76 · 20% of the moat score

For a REIT, pricing power is the ability to raise rents at renewal and still keep the space occupied.

AFFO Strength

Score 80 · 18% of the moat score

AFFO — adjusted funds from operations — is the cash a REIT can actually distribute after the recurring capital spending buildings need in order to stay leasable.

Balance Sheet & Cost of Capital

Score 86 · 20% of the moat score

Real estate is bought with borrowed money, so a REIT's cost of capital is its competitive advantage.

Capital Recycling & Growth

Score 13 · 16% of the moat score

REITs grow by issuing shares and debt to buy more property, which creates value only when the yield on the asset exceeds the cost of the capital raised.

Operational Efficiency

Score 91 · 14% of the moat score

Running property — leasing, maintenance, taxes, management — is the part of the business a REIT genuinely controls.

Portfolio Quality & Diversification

Score 34 · 12% of the moat score

Portfolio quality is really a question about what happens when a tenant fails.

How each REIT Specialized defense is measured, in full →

Understanding DRH's moat

What is Diamondrock Hospitality Company's moat score?

Diamondrock Hospitality Company (DRH) scores 66 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #6 of 19 scored companies in REIT - Hotel & Motel, the top 32%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 29 companies in REIT - Hotel & Motel. Its strongest defense is Operational Efficiency (91/100) and its weakest is Capital Recycling & Growth (13/100).

How does Diamondrock Hospitality Company compare with other REIT - Hotel & Motel companies?

Diamondrock Hospitality Company ranks #6 of 19 scored companies in REIT - Hotel & Motel by moat score. The widest moat in REIT - Hotel & Motel is Apple Hospitality REIT, Inc. (APLE) at 94/100. The companies ranked closest are Service Properties Trust - Shar (SVC) at 66 just above it and Ryman Hospitality Properties, I (RHP) at 63 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — REIT Specialized in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 29 companies in REIT - Hotel & Motel. The defenses are then weighted to produce the overall score out of 100.

Why is Diamondrock Hospitality Company scored with the REIT Specialized template?

A REIT is a portfolio of buildings financed with debt and required to distribute most of its taxable income. Reported earnings are dominated by depreciation on assets that often appreciate, so net income says very little; the real question is how much cash the properties distribute, and how securely. The REIT template scores what determines that: rent pricing, distributable cash, cost of capital, and the discipline behind growth.

Which competitive defenses are measured for Diamondrock Hospitality Company?

The REIT Specialized template measures 6 defenses, and DRH scores: Rent Pricing Power (76), AFFO Strength (80), Balance Sheet & Cost of Capital (86), Capital Recycling & Growth (13), Operational Efficiency (91), Portfolio Quality & Diversification (34). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

Send Feedback
Please select a category.
0/1000