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Diamondrock Hospitality CoFRA:HBO +2.70%65 Net Margin % is 28.43% as of Jun. 2026, which is 196% above its 10-year median of 9.61. 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 917 REITs companies, Diamondrock Hospitality Co ranks worse than 73.39% on this metric.
Diamondrock Hospitality Co (FRA:HBO) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Diamondrock Hospitality Co Net Margin % Related Terms
Diamondrock Hospitality Co Net Margin % 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 Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % vs REITs Industry
For the REITs industry and Real Estate sector, Diamondrock Hospitality Co's Net Margin % distribution charts can be found below:
* The bar in red indicates where Diamondrock Hospitality Co's Net Margin % 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 Net Margin % of 28.43% as of Jun. 2026. Net margin is the ratio of total net income to net sales. View historical data on Diamondrock Hospitality Co and its competitors. This is 196% above median its historical median of 9.61. According to the industry distribution chart, Diamondrock Hospitality Co ranks #673 out of 917 companies in the REITs industry, placing it in the top 73.4%.
Is Diamondrock Hospitality Co's Net Margin % too high?
Diamondrock Hospitality Co's current Net Margin % of 28.43% is 196% above median its 10-year median of 9.61. The REITs industry median Net Margin % is 45.50. Diamondrock Hospitality Co's value of 28.43% is 37.5% below this industry median. Based on the distribution chart, Diamondrock Hospitality Co ranks #673 out of 917 companies in the REITs industry, which is below 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 Net Margin % compare to PK and SHO?
According to the REITs industry distribution chart, Diamondrock Hospitality Co ranks #673 out of 917 companies for Net Margin %. This places Diamondrock Hospitality Co in the lower half of its industry. The industry median Net Margin % is 45.50. Diamondrock Hospitality Co's value of 28.43% is 37.5% below this benchmark. While the company's 10-year median is 9.61 vs. the industry median of 45.50, Diamondrock Hospitality Co has consistently been below 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 Net Margin % for a REITs company?
The median Net Margin % among REITs companies is 45.50, based on 917 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Diamondrock Hospitality Co's current Net Margin % of 28.43% is 37.5% below 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Diamondrock Hospitality Co and its competitors. For the REITs industry, the median Net Margin % is 45.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diamondrock Hospitality Co's current Net Margin % is 28.43%, which is 196% above median its own 10-year median of 9.61. 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 €7.93, compared to a current price of €11.40 — trading 43.8% above its estimated fair value. The current Net Margin % is 28.43%, which is 196% above median its 10-year median of 9.61 and 37.5% below the REITs industry median of 45.50. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Diamondrock Hospitality Co (FRA:HBO), the current Net Margin % is 28.43% 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:
Net Margin %: 28.43% (196% above median its 10-year median of 9.61)
GF Value™: €7.93 vs. price of €11.40 (43.8% above fair value)
Industry Position: 37.5% below the REITs median (#673 of 917)
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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