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Diamondrock Hospitality CoFRA:HBO +2.70%65 Return-on-Tangible-Asset is 11.93% as of Jun. 2026, which is 309% above its 10-year median of 2.92. 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 926 REITs companies, Diamondrock Hospitality Co ranks better than 67.71% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Diamondrock Hospitality Co's annualizedNet Income for the quarter that ended in Jun. 2026 was €314.1 Mil. Diamondrock Hospitality Co's average total tangible assets for the quarter that ended in Jun. 2026 was €2,632.6 Mil. Therefore, Diamondrock Hospitality Co's annualized Return-on-Tangible-Asset for the quarter that ended in Jun. 2026 was 11.93%.
The historical rank and industry rank for Diamondrock Hospitality Co's Return-on-Tangible-Asset or its related term are showing as below:
FRA:HBO'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -12 Med: 2.92 Max: 5.59
Current: 5.03
During the past 13 years, Diamondrock Hospitality Co's highest Return-on-Tangible-Asset was 5.59%. The lowest was -12.00%. And the median was 2.92%.
FRA:HBO's Return-on-Tangible-Asset is ranked better than 67.71% of 926
companies
in the REITs industry
Industry Median: 3.295
vs FRA:HBO: 5.03
Diamondrock Hospitality Co (FRA:HBO) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Diamondrock Hospitality Co Return-on-Tangible-Asset Related Terms
Diamondrock Hospitality Co Return-on-Tangible-Asset 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.
Diamondrock Hospitality Co Return-on-Tangible-Asset Chart
FRA:HBO vs PK, SHO, PEB: Return-on-Tangible-Asset Comparison
For the REIT - Hotel & Motel subindustry, Diamondrock Hospitality Co's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs REITs Industry
For the REITs industry and Real Estate sector, Diamondrock Hospitality Co's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Diamondrock Hospitality Co's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Jun. 2026) net income data.
What does a Return-on-Tangible-Asset of 11.93% mean?
Diamondrock Hospitality Co (FRA:HBO) has a Return-on-Tangible-Asset of 11.93% as of Jun. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Diamondrock Hospitality Co and its competitors. This is 309% above median its historical median of 2.92. According to the industry distribution chart, Diamondrock Hospitality Co ranks #299 out of 926 companies in the REITs industry, placing it in the top 32.3%.
Is Diamondrock Hospitality Co's Return-on-Tangible-Asset too high?
Diamondrock Hospitality Co's current Return-on-Tangible-Asset of 11.93% is 309% above median its 10-year median of 2.92. The REITs industry median Return-on-Tangible-Asset is 3.30. Diamondrock Hospitality Co's value of 11.93% is 262.1% above this industry median. Based on the distribution chart, Diamondrock Hospitality Co ranks #299 out of 926 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 Return-on-Tangible-Asset compare to PK and SHO?
According to the REITs industry distribution chart, Diamondrock Hospitality Co ranks #299 out of 926 companies for Return-on-Tangible-Asset. This puts Diamondrock Hospitality Co in the upper half of its industry. The industry median Return-on-Tangible-Asset is 3.30. Diamondrock Hospitality Co's value of 11.93% is 262.1% above this benchmark. While the company's 10-year median is 2.92 vs. the industry median of 3.30, 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 Return-on-Tangible-Asset for a REITs company?
The median Return-on-Tangible-Asset among REITs companies is 3.30, based on 926 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Diamondrock Hospitality Co's current Return-on-Tangible-Asset of 11.93% is 262.1% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Diamondrock Hospitality Co and its competitors. For the REITs industry, the median Return-on-Tangible-Asset is 3.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Diamondrock Hospitality Co's current Return-on-Tangible-Asset is 11.93%, which is 309% above median its own 10-year median of 2.92. 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 Return-on-Tangible-Asset is 11.93%, which is 309% above median its 10-year median of 2.92 and 262.1% above the REITs industry median of 3.30. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Diamondrock Hospitality Co (FRA:HBO), the current Return-on-Tangible-Asset is 11.93% 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:
Return-on-Tangible-Asset: 11.93% (309% above median its 10-year median of 2.92)
GF Value™: €7.93 vs. price of €11.40 (43.8% above fair value)
Industry Position: 262.1% above the REITs median (#299 of 926)
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
Get the complete analysis for FRA:HBO
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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