
DiamondRock Hospitality (DRH) Stock Forecast & Price Target
DiamondRock Hospitality (DRH) Analyst Ratings
Bulls say
DiamondRock Hospitality Company has demonstrated a positive outlook for its financial performance, marked by an expected increase in comparable full-year RevPAR growth by approximately 20 basis points and total RevPAR growth by 10 basis points. The company has adjusted its 2024 guidance upward, projecting an adjusted FFO per share of $0.97-$0.99, reflecting robust cash flow and strategic investment decisions. Additionally, the successful repositioning of its portfolio in urban and destination markets has supported a year-to-date performance that outperforms its lodging peers.
Bears say
Diamondrock Hospitality Company has reported a significant decline in financial performance, as evidenced by a 15.0% decrease in adjusted EBITDA in the latest quarter, totaling $57.3 million, alongside hotel adjusted EBITDA margins that fell to 24.7%, reflecting a drop of 505 basis points year-over-year. The company's outlook is further hindered by anticipated challenges in operational performance, particularly concerning the lodging sector's vulnerability to economic cycles, which could adversely affect profitability in the face of a potential sustained economic downturn. Additionally, the firm intends to lower capital expenditures to $85 million in 2024 from previous estimates of $90 million to $100 million, indicating a cautious approach amid rising insurance costs and challenging real estate tax conditions.
This aggregate rating is based on analysts' research of DiamondRock Hospitality and is not a guaranteed prediction by Public.com or investment advice.
DiamondRock Hospitality (DRH) Analyst Forecast & Price Prediction
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