Diamondrock Hospitality Co (FRA:HBO) Effective Interest Rate on Debt %: 4.61% (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 Effective Interest Rate on Debt %?

Diamondrock Hospitality Co FRA:HBO +2.70% 65 Effective Interest Rate on Debt % is 4.61% 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.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Diamondrock Hospitality Co's annualized positive value of Interest Expense for the quarter that ended in Jun. 2026 was €47.8 Mil. Diamondrock Hospitality Co's average total debt for the quarter that ended in Jun. 2026 was €1,036.3 Mil. Therefore, Diamondrock Hospitality Co's annualized Effective Interest Rate on Debt % for the quarter that ended in Jun. 2026 was 4.61%.


Diamondrock Hospitality Co  (FRA:HBO) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Diamondrock Hospitality Co Effective Interest Rate on Debt % Related Terms


Diamondrock Hospitality Co Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Diamondrock Hospitality Co's Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % Chart

Diamondrock Hospitality Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.30 3.31 4.65 5.25 4.85

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
Effective Interest Rate on Debt % 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 4.75 5.59 5.62 4.66 4.61

FRA:HBO vs PK, SHO, PEB: Effective Interest Rate on Debt % Comparison

For the REIT - Hotel & Motel subindustry, Diamondrock Hospitality Co's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % vs REITs Industry

For the REITs industry and Real Estate sector, Diamondrock Hospitality Co's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Diamondrock Hospitality Co's Effective Interest Rate on Debt % falls into.


FRA:HBO
65GF Score
Diamondrock Hospitality Co FRA:HBO
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Diamondrock Hospitality Co Effective Interest Rate on Debt % Calculation

Diamondrock Hospitality Co's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Dec. 2024 )+Total Debt  (A: Dec. 2025 ))/ count )
=-1  *  -51.945/( (1127.405+1012.761)/ 2 )
=-1  *  -51.945/1070.083
=4.85 %

where

Total Debt  (A: Dec. 2024 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1127.405 + 0
=1127.405

Total Debt  (A: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1012.761 + 0
=1012.761

Diamondrock Hospitality Co's annualized Effective Interest Rate on Debt % for the quarter that ended in Jun. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Mar. 2026 )+Total Debt  (Q: Jun. 2026 ))/ count )
=-1  *  -47.784/( (1034.134+1038.367)/ 2 )
=-1  *  -47.784/1036.2505
=4.61 %

where

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1034.134 + 0
=1034.134

Total Debt  (Q: Jun. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=1038.367 + 0
=1038.367

* 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.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Jun. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 4.61% mean?
Diamondrock Hospitality Co (FRA:HBO) has a Effective Interest Rate on Debt % of 4.61% as of Jun. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Diamondrock Hospitality Co and its competitors.
Is Diamondrock Hospitality Co's Effective Interest Rate on Debt % too high?
Diamondrock Hospitality Co's current Effective Interest Rate on Debt % is 4.61%. 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 Effective Interest Rate on Debt % compare to PK and SHO?
Diamondrock Hospitality Co's Effective Interest Rate on Debt % of 4.61% 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 Effective Interest Rate on Debt % for a REITs company?
A good Effective Interest Rate on Debt % depends on the REITs industry context. However, Effective Interest Rate on Debt % 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 Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Diamondrock Hospitality Co and its competitors. Diamondrock Hospitality Co's current Effective Interest Rate on Debt % is 4.61%. 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 Effective Interest Rate on Debt % is 4.61%. 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 Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Diamondrock Hospitality Co (FRA:HBO), the current Effective Interest Rate on Debt % is 4.61% 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:

  • Effective Interest Rate on Debt %: 4.61%
  • 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

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Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€11.40
Price
€8.03
GF Value