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Diamondrock Hospitality CoFRA:HBO +2.70%65 Current Ratio is 0.98 as of Jun. 2026, which is 9% above its 10-year median of 0.90. GuruFocus rates FRA:HBO with a GF Score™ of 65/100 and a GF Value™ of €7.93 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 743 REITs companies, Diamondrock Hospitality Co ranks better than 50.74% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Diamondrock Hospitality Co's current ratio for the quarter that ended in Jun. 2026 was 0.98.
Diamondrock Hospitality Co has a current ratio of 0.98. It indicates that the company may have difficulty meeting its current obligations. Low values, however, do not indicate a critical problem. If Diamondrock Hospitality Co has good long-term prospects, it may be able to borrow against those prospects to meet current obligations.
The historical rank and industry rank for Diamondrock Hospitality Co's Current Ratio or its related term are showing as below:
FRA:HBO'
s Current Ratio Range Over the Past 10 Years
Min: 0.49 Med: 0.9 Max: 1.81
Current: 0.98
During the past 13 years, Diamondrock Hospitality Co's highest Current Ratio was 1.81. The lowest was 0.49. And the median was 0.90.
FRA:HBO's Current Ratio is ranked better than 50.74% of 743
companies
in the REITs industry
Industry Median: 0.96
vs FRA:HBO: 0.98
Diamondrock Hospitality Co (FRA:HBO) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Diamondrock Hospitality Co Current Ratio Related Terms
Diamondrock Hospitality Co Current Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the REIT - Hotel & Motel subindustry, Diamondrock Hospitality Co's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Diamondrock Hospitality Co Current Ratio vs REITs Industry
For the REITs industry and Real Estate sector, Diamondrock Hospitality Co's Current Ratio distribution charts can be found below:
* The bar in red indicates where Diamondrock Hospitality Co's Current Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Diamondrock Hospitality Co (FRA:HBO) has a Current Ratio of 0.98 as of Jun. 2026. This is near median its historical median of 0.90. Over the past decade, Diamondrock Hospitality Co's Current Ratio has ranged from 0.49 to 1.81. According to the industry distribution chart, Diamondrock Hospitality Co ranks #366 out of 743 companies in the REITs industry, placing it in the top 49.3%.
Is Diamondrock Hospitality Co's Current Ratio too high?
Diamondrock Hospitality Co's current Current Ratio of 0.98 is near median its 10-year median of 0.90. Over the past 10 years, this metric has ranged from a low of 0.49 to a high of 1.81. The REITs industry median Current Ratio is 0.96. Diamondrock Hospitality Co's value of 0.98 is 2.1% above this industry median. Based on the distribution chart, Diamondrock Hospitality Co ranks #366 out of 743 companies in the REITs industry, which is above the industry midpoint. Overall, Diamondrock Hospitality Co has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Diamondrock Hospitality Co's Current Ratio compare to PK and SHO?
According to the REITs industry distribution chart, Diamondrock Hospitality Co ranks #366 out of 743 companies for Current Ratio. This puts Diamondrock Hospitality Co in the upper half of its industry. The industry median Current Ratio is 0.96. Diamondrock Hospitality Co's value of 0.98 is 2.1% above this benchmark. Historically, Diamondrock Hospitality Co's own Current Ratio has ranged from 0.49 to 1.81 over the past decade. While the company's 10-year median is 0.90 vs. the industry median of 0.96, Diamondrock Hospitality Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for a REITs company?
The median Current Ratio among REITs companies is 0.96, based on 743 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Diamondrock Hospitality Co's current Current Ratio of 0.98 is 2.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the REITs industry, the median Current Ratio is 0.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diamondrock Hospitality Co's current Current Ratio is 0.98, which is near median its own 10-year median of 0.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Diamondrock Hospitality Co stock overvalued right now?
Based on GuruFocus' analysis, Diamondrock Hospitality Co (FRA:HBO) is currently considered Significantly Overvalued. The stock's GF Value™ is €7.93, compared to a current price of €11.40 — trading 43.8% above its estimated fair value. The current Current Ratio is 0.98, which is near median its 10-year median of 0.90 and 2.1% above the REITs industry median of 0.96. Diamondrock Hospitality Co's overall GF Score™ is 65/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Diamondrock Hospitality Co (FRA:HBO), the current Current Ratio is 0.98 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Diamondrock Hospitality Co (FRA:HBO) Overvalued in 2026?
Based on GuruFocus' analysis, Diamondrock Hospitality Co stock appears to be overvalued.
The current stock price of €11.40 is trading 43.8% above its estimated GF Value™ of €7.93.
GuruFocus considers Diamondrock Hospitality Co to be Significantly Overvalued.
Key valuation signals for FRA:HBO:
Current Ratio: 0.98 (near median its 10-year median of 0.90)
GF Value™: €7.93 vs. price of €11.40 (43.8% above fair value)
Industry Position: 2.1% above the REITs median (#366 of 743)
No single metric tells the full story. See the FRA:HBO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Diamondrock Hospitality Company is a real estate investment trust that owns lodging properties. Its business is to acquire, own, manage, and renovate full-service hotel properties in the United States. It operates in cities such as Chicago, Boston, New York, Denver, and others. Within DiamondRock's holdings, the majority of the hotel brands include Marriott, Starwood, and Hilton. The company operates in one reportable segment: The hotel ownership segment, which is comprised of upper upscale and luxury chain scale hotels that offer hotel rooms, food and beverage and other ancillary guest services.
65GF Score
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