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Diamondrock Hospitality (DRH)

DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in top gateway markets and destination resort locations. The Company owns 31 premium quality hotels with over 10,000 rooms. The Company has strategically positioned its hotels to be operated both under leading global brand families such as Hilton and Marriott as well as unique boutique hotels in the lifestyle segment.

Company profile

Ticker
DRH, DRH-PA
Exchange
Website
CEO
Mark Brugger
Employees
Location
Fiscal year end
SEC CIK
Subsidiaries
Bloodstone TRS, Inc. • CPFB Holdings, LLC • CPFB Owner, LLC • CPFB Tenant, LLC • DiamondRock Acquisition, LLC • DiamondRock Alpharetta Owner, LLC • DiamondRock Alpharetta Tenant, LLC • DiamondRock AZ LA Owner, LLC • DiamondRock AZ LA Tenant, LLC • DiamondRock AZ OR Owner, LLC ...

DRH stock data

Analyst ratings and price targets

Last 3 months

Calendar

4 Aug 22
11 Aug 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 114.07M 114.07M 114.07M 114.07M 114.07M 114.07M
Cash burn (monthly) (no burn) 8.8M (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) n/a 12.37M n/a n/a n/a n/a
Cash remaining n/a 101.7M n/a n/a n/a n/a
Runway (months of cash) n/a 11.6 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
9 Aug 22 Justin L. Leonard LTIP Units Common stock, par value $0.01 per share Grant Acquire A No No 0 71,084 0 71,084
10 May 22 Chi Timothy Common stock, par value $0.01 per share Grant Acquire A No No 0 10,277 0 82,451
10 May 22 Michael A. Hartmeier Common stock, par value $0.01 per share Grant Acquire A No No 0 10,277 0 64,953
10 May 22 Mccarten William W Common stock, par value $0.01 per share Grant Acquire A No No 0 10,277 0 404,968
13F holders Current Prev Q Change
Total holders 214 215 -0.5%
Opened positions 22 30 -26.7%
Closed positions 23 30 -23.3%
Increased positions 78 81 -3.7%
Reduced positions 79 71 +11.3%
13F shares Current Prev Q Change
Total value 2.17B 2.03B +6.9%
Total shares 214.99M 211.56M +1.6%
Total puts 0 12.2K EXIT
Total calls 0 0
Total put/call ratio Infinity
Largest owners Shares Value Change
BLK Blackrock 40.31M $407.17M -3.5%
Vanguard 34.72M $350.68M +2.3%
STT State Street 13.54M $136.74M +12.9%
FMR 12.36M $124.85M +4.7%
PFG Principal Financial Group Inc - Registered Shares 10.47M $105.7M +83.0%
PZN Pzena Investment Management 6.57M $66.32M +21.8%
MCQEF Macquarie 6.27M $63.31M +40.1%
Heitman Real Estate Securities 6.24M $63.02M +0.5%
JPM JPMorgan Chase & Co. 5.4M $54.51M -24.0%
IVZ Invesco 5.24M $52.91M +2.2%
Largest transactions Shares Bought/sold Change
PFG Principal Financial Group Inc - Registered Shares 10.47M +4.75M +83.0%
Norges Bank 0 -2.16M EXIT
MCQEF Macquarie 6.27M +1.79M +40.1%
JPM JPMorgan Chase & Co. 5.4M -1.71M -24.0%
STT State Street 13.54M +1.55M +12.9%
BLK Blackrock 40.31M -1.48M -3.5%
Balyasny Asset Management 3.24M +1.41M +76.6%
PZN Pzena Investment Management 6.57M +1.17M +21.8%
Citadel Advisors 983.43K +867.49K +748.3%
Waterfront Capital Partners 570.11K -822.53K -59.1%

Financial report summary

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Risks
  • The outbreak of the novel coronavirus (COVID-19) has caused, and could continue to cause, severe disruptions in the U.S., regional and global economies, travel and the hospitality industry and has impacted, and could continue to materially and adversely impact, our financial condition and results of operations.
  • Economic conditions and other factors beyond our control may adversely affect the lodging industry.
  • Our hotels are subject to significant competition.
  • Our hotels are subject to seasonal volatility, which is expected to contribute to fluctuations in our financial condition and results of operations.
  • The need for business-related travel, and, therefore, demand for rooms in some of our hotels may be materially and adversely affected by the increased use of business-related technology.
  • We may be subject to unknown or contingent liabilities related to recently sold or acquired hotels, as well as hotels that we may sell or acquire in the future.
  • We may be unable to maintain good relationships with third-party hotel managers and franchisors.
  • A substantial number of our hotels operate under a brand owned by Marriott or Hilton; therefore, we are subject to risks associated with concentrating our portfolio in two brands.
  • Contractual and other disagreements with third-party hotel managers and franchisors could make us liable to them or result in litigation costs or other expenses.
  • If we were to lose a brand license at one or more of our hotels, the value of the affected hotels could decline significantly and we could incur significant costs to obtain new franchise licenses, which could materially and adversely affect our results of operations and profitability as well as limit or slow our future growth.
  • Our business may be adversely affected by consolidation in the lodging industry.
  • The failure of tenants to make rent payments under our retail and restaurant leases may adversely affect our results of operation.
  • Actions by federal, state or local jurisdictions could have a material adverse effect on our business.
  • Our credit facility and term loans contain financial covenants that may constrain our ability to sell assets and make distributions to our stockholders.
  • There is refinancing risk associated with our debt.
  • Increases in interest rates may increase our interest expense.
  • Hedging against interest rate exposure may adversely affect us.
  • The discontinuation of LIBOR and the replacement of LIBOR with an alternative reference rate may adversely affect our borrowing costs and could impact our business and results of operations.
  • We cannot assure you that we will remain qualified as a REIT.
  • Maintaining our REIT qualification contains certain restrictions and drawbacks.
  • Even if we maintain our status as a REIT, in certain circumstances, we may be subject to U.S. federal and state income taxes, which would reduce our cash available for distribution to our stockholders.
  • Our property taxes could increase due to property tax rate changes or reassessment, which could impact our cash flow.
  • Dividends payable by REITs generally do not qualify for reduced tax rates.
  • Legislative or regulatory action could adversely affect our stockholders.
  • We may be unable to generate sufficient cash flows from our operations to make distributions to our stockholders at expected levels, and we cannot assure you of our ability to make distributions in the future.
  • We cannot guarantee that we will repurchase our common stock pursuant to a share repurchase program or that a share repurchase program will enhance long-term stockholder value. Share repurchases could also increase the volatility of the price of our common stock and could diminish our cash reserves.
  • Tax protection agreements may limit our ability to sell or otherwise dispose of certain properties and may require our operating partnership to maintain certain debt levels that otherwise would not be required to operate our business.
  • We and our hotel managers rely on information technology in our operations and any material failures, inadequacies, interruptions, security failures, social engineering attacks or cyber-attacks could harm our business.
  • We may be subject to litigation, which could have a material adverse effect on our financial condition, results of operations, cash flow and trading price of our common stock and Series A Preferred Stock.
Management Discussion
  • Our results of operations for the three and six months ended June 30, 2022 improved relative to the three and six months ended June 30, 2021 as all of our hotels were open for the period and travel demand increased.
  • In response to the COVID-19 pandemic, operations were suspended at four of our hotels, one of which was sold on June 30, 2021, for a portion of the three months ended June 30, 2021. All of our hotels were open during the three months ended June 30, 2022.
  • Revenue. Revenue consists primarily of the room, food and beverage and other operating revenues from our hotels, as follows (dollars in millions):

Content analysis

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New words: assumption, consulting, governmental, lifting, repaid, repay, resume, twelve, unmodified
Removed: add, comparability, Downtown, eased, fee, historically, phase