Diamondrock Hospitality Co (DRH) is undervalued and Host Hotels & Resorts Inc (HST) is undervalued.
Against our estimates of intrinsic value, DRH trades at the wider discount: a margin of safety of +37%, against +34% for HST.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.6% (average of 3 methods) values the shares at $19.53; the price of $12.31 is 37% below that value, and 79% of that value comes from beyond year five.
Leak Score 54/100 on 3 of 12 signals
Discounting its cash flows at 9.0% (average of 3 methods) values the shares at $33.67; the price of $22.28 is 34% below that value, and 78% of that value comes from beyond year five.
Leak Score 68/100 on 3 of 12 signals
| Metric | DRH | HST |
|---|---|---|
| Verdict | Undervalued | Undervalued |
| Price | $12.31 | $22.28 |
| Intrinsic value | $19.53 | $33.67 |
| Margin of safety | +37% | +34% |
| Leak Score | 54/100 (3/12) | 68/100 (3/12) |
| Market cap | $2.5B | $15.3B |
| Revenue growth, 5 years | 30.2% | 30.4% |
| Operating margin | 16.3% | 14.4% |
| Net margin | 13.1% | 16.5% |
| Return on equity | 9.9% | 15.8% |
| Debt to equity | 0.79 | 0.88 |
| P/E | 17.1x | 14.9x |
| Forward P/E | 18.5x | 20.9x |
| P/B | 1.6x | 2.4x |
| Dividend yield | 3.3% | 7.0% |