Diamondrock Hospitality Co (DRH) is undervalued and RLJ Lodging Trust (RLJ) is undervalued.
Against our estimates of intrinsic value, RLJ trades at the wider discount: a margin of safety of +76%, against +37% for DRH.
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 8.3% (average of 3 methods) values the shares at $45.88; the price of $11.03 is 76% below that value, and 79% of that value comes from beyond year five.
Leak Score 72/100 on 8 of 12 signals
| Metric | DRH | RLJ |
|---|---|---|
| Verdict | Undervalued | Undervalued |
| Price | $12.31 | $11.03 |
| Intrinsic value | $19.53 | $45.88 |
| Margin of safety | +37% | +76% |
| Leak Score | 54/100 (3/12) | 72/100 (8/12) |
| Market cap | $2.5B | $1.7B |
| Revenue growth, 5 years | 30.2% | 23.3% |
| Operating margin | 16.3% | 9.5% |
| Net margin | 13.1% | 0.1% |
| Return on equity | 9.9% | 1.3% |
| Debt to equity | 0.79 | 1.31 |
| P/E | 17.1x | 1869.5x |
| Forward P/E | 18.5x | 320.1x |
| P/B | 1.6x | 0.9x |
| Dividend yield | 3.3% | 5.4% |