Diamondrock Hospitality Co (FRA:HBO) EBIT: €185.3 Mil (TTM As of Jun. 2026)

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FRA:HBO Diamondrock Hospitality Co FRA:HBO
65 GF Score
Price €11.40
GF Value €8.03
Valuation Significantly Overvalued
! 8 Warning Signs
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What is Diamondrock Hospitality Co EBIT?

Diamondrock Hospitality Co FRA:HBO +2.70% 65 EBIT is €185.3 Mil as of Jun. 2026. GuruFocus rates FRA:HBO with a GF Score™ of 65/100 and a GF Value™ of €8.03 (Significantly Overvalued). The stock has 8 warning signs investors should review.

Diamondrock Hospitality Co's earnings before interest and taxes (EBIT) for the three months ended in Jun. 2026 was €92.2 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2026 was €185.3 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Diamondrock Hospitality Co's annualized ROC % for the quarter that ended in Jun. 2026 was 9.98%. Diamondrock Hospitality Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2026 was 16.02%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Diamondrock Hospitality Co's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Jun. 2026 was 5.61%.


Diamondrock Hospitality Co  (FRA:HBO) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Diamondrock Hospitality Co's annualized ROC % for the quarter that ended in Jun. 2026 is calculated as:

ROC % (Q: Jun. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2026 ) + Invested Capital (Q: Jun. 2026 ))/ count )
=254.648 * ( 1 - 1.82% )/( (2518.663 + 2493.831)/ 2 )
=250.0134064/2506.247
=9.98 %

where

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2603.686 - 159.422 - ( 33.988 - max(0, 312.378 - 237.979+33.988))
=2518.663

Invested Capital(Q: Jun. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2661.541 - 172.67 - ( 91.991 - max(0, 296.093 - 291.133+91.991))
=2493.831

Note: The Operating Income data used here is four times the quarterly (Jun. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Diamondrock Hospitality Co's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2026  Q: Jun. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=368.728/( ( (2302.345 + max(-108.387, 0)) + (2300.715 + max(-96.951, 0)) )/ 2 )
=368.728/( ( 2302.345 + 2300.715 )/ 2 )
=368.728/2301.53
=16.02 %

where Working Capital is:

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(139.472 + 0 + 64.519) - (159.422 + 122.523 + 30.433)
=-108.387

Working Capital(Q: Jun. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(164.523 + 0 + 34.619) - (172.67 + 123.424 + -0.00099999999997635)
=-96.951

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Diamondrock Hospitality Co's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Jun. 2026 )
=185.301/3301.654
=5.61 %

* 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 EBIT Related Terms


Diamondrock Hospitality Co EBIT Historical Data

* Premium members only.

The historical data trend for Diamondrock Hospitality Co's EBIT can be seen below:

* 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 EBIT Chart

Diamondrock Hospitality Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only -137.26 143.49 135.66 108.24 137.95

Diamondrock Hospitality Co Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 48.61 33.44 35.14 24.54 92.18

FRA:HBO vs PK, SHO, PEB: EBIT Comparison

For the REIT - Hotel & Motel subindustry, Diamondrock Hospitality Co's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs REITs Industry

For the REITs industry and Real Estate sector, Diamondrock Hospitality Co's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Diamondrock Hospitality Co's EV-to-EBIT falls into.


FRA:HBO
65GF Score
Diamondrock Hospitality Co FRA:HBO
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Diamondrock Hospitality Co EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €185.3 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of €185.3 Mil mean?
Diamondrock Hospitality Co (FRA:HBO) has a EBIT of €185.3 Mil as of Jun. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Diamondrock Hospitality Co.
Is Diamondrock Hospitality Co's EBIT too high?
Diamondrock Hospitality Co's current EBIT is €185.3 Mil. 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 EBIT compare to PK and SHO?
Diamondrock Hospitality Co's EBIT of €185.3 Mil can be compared against companies in the REITs industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a REITs company?
A good EBIT depends on the REITs industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Diamondrock Hospitality Co. Diamondrock Hospitality Co's current EBIT is €185.3 Mil. 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 €8.03, compared to a current price of €11.40 — trading 42% above its estimated fair value. The current EBIT is €185.3 Mil. 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 EBIT calculated?
EBIT is calculated from a company's financial statements. For Diamondrock Hospitality Co (FRA:HBO), the current EBIT is €185.3 Mil 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 42% above its estimated GF Value™ of €8.03. GuruFocus considers Diamondrock Hospitality Co to be Significantly Overvalued.

Key valuation signals for FRA:HBO:

  • EBIT: €185.3 Mil
  • GF Value™: €8.03 vs. price of €11.40 (42% above fair value)
  • GF Score™: 65/100 with 8 warning signs

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 Co Business Description

Industry Real EstateREITs
Other Exchanges DRH:USA
Address 7373 Wisconsin Avenue, Suite 1400, Bethesda, MD, USA, 20814
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

Get the complete analysis for FRA:HBO

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€11.40
Price
€8.03
GF Value