Which Is a Better Investment, Diamondrock Hospitality Co or Pebblebrook Hotel Trust Stock?

By AAII Staff
June 21, 2026
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Sifting through countless of stocks in the Hotel & Resort REITs industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in DiamondRock Hospitality Company or Pebblebrook Hotel Trust because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how DiamondRock Hospitality Company and Pebblebrook Hotel Trust compare based on key financial metrics to determine which better meets your investment needs.

About DiamondRock Hospitality Company and Pebblebrook Hotel Trust

DiamondRock Hospitality Company is a self-advised real estate investment trust that owns a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets. The Company currently owns 34 premium quality hotels and resorts with approximately 9,400 rooms. The Company has strategically positioned its portfolio to be operated both under leading global brand families as well as independent boutique hotels in the lifestyle segment. DiamondRock Hospitality Company was established on May 26 2004 and is based in Bethesda, United States.

Pebblebrook Hotel Trust is a publicly traded real estate investment trust and the largest owner of urban and resort lifestyle hotels in the United States. The Company owns 43 hotels, totaling approximately 10,900 guest rooms across 13 urban and resort markets. Pebblebrook Hotel Trust is based in Bethesda, United States. Pebblebrook Hotel Trust was established in October, 02 2009 and incorporated in Maryland.

Latest Hotel & Resort REITs and DiamondRock Hospitality Company, Pebblebrook Hotel Trust Stock News

As of June 18, 2026, DiamondRock Hospitality Company had a $2.5 billion market capitalization, compared to the Hotel & Resort REITs median of $1.8 million. DiamondRock Hospitality Company’s stock is up 37.4% in 2026, up 3.3% in the previous five trading days and up 63.26% in the past year.

Currently, DiamondRock Hospitality Company’s price-earnings ratio is 26.1. DiamondRock Hospitality Company’s trailing 12-month revenue is $1.1 billion with a 9.3% net profit margin. Year-over-year quarterly sales growth most recently was 1.3%. Analysts expect adjusted earnings to reach $0.540 per share for the current fiscal year. DiamondRock Hospitality Company currently has a 2.9% dividend yield.

As of June 18, 2026, Pebblebrook Hotel Trust had a $2.2 billion market cap, putting it in the 55th percentile of all stocks. Pebblebrook Hotel Trust’s stock is up 68.4% in 2026, up 4.8% in the previous five trading days and up 100.84% in the past year.

Currently, Pebblebrook Hotel Trust does not have a price-earnings ratio. Pebblebrook Hotel Trust’s trailing 12-month revenue is $1.5 billion with a -3.5% net profit margin. Year-over-year quarterly sales growth most recently was 7.9%. Analysts expect adjusted earnings to reach $-0.560 per share for the current fiscal year. Pebblebrook Hotel Trust currently has a 0.2% dividend yield.

How We Compare DiamondRock Hospitality Company and Pebblebrook Hotel Trust Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at DiamondRock Hospitality Company and Pebblebrook Hotel Trust’s stock grades to see how they measure up against one another.

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DiamondRock Hospitality Company and Pebblebrook Hotel Trust Growth Grades

Company Ticker Growth
DiamondRock Hospitality Company DRH D
Pebblebrook Hotel Trust PEB B

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

DiamondRock Hospitality Company has a Growth Score of 32, which is Weak. Pebblebrook Hotel Trust has a Growth Score of 69, which is Strong.

The Growth Grade Winner: Pebblebrook Hotel Trust

As you can clearly see from the Growth Grade breakdown above, Pebblebrook Hotel Trust has a more attractive growth grade than DiamondRock Hospitality Company. For investors who focus solely on how a company is growing relative to other companies in the same industry, Pebblebrook Hotel Trust could be a good stock to add to their portfolio. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

DiamondRock Hospitality Company and Pebblebrook Hotel Trust’s Quality Grades

Company Ticker Quality
DiamondRock Hospitality Company DRH B
Pebblebrook Hotel Trust PEB B

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

DiamondRock Hospitality Company has a Quality Score of 71, which is Strong. Pebblebrook Hotel Trust has a Quality Score of 61, which is Strong.

The Quality Grade Winner: It’s a Tie!

Looking at the Quality Grade breakdown above, both DiamondRock Hospitality Company and Pebblebrook Hotel Trust have a grade of B. For investors who focus solely on a company’s overall quality, you will need to conduct further research into both companies to see if they are a good fit for your portfolio. As a good rule of thumb, you should always analyze multiple factors based on a wide range of metrics before choosing a company to invest in.

DiamondRock Hospitality Company and Pebblebrook Hotel Trust’s Estimate Revisions Grades

Company Ticker Earnings Estimate
DiamondRock Hospitality Company DRH B
Pebblebrook Hotel Trust PEB B

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

DiamondRock Hospitality Company has a Earnings Estimate Score of 77, which is Positive. Pebblebrook Hotel Trust has a Earnings Estimate Score of 61, which is Positive.

The Earnings Estimate Revisions Grade Winner: It’s a Tie!

Looking at the Earnings Estimate Revisions Grade breakdown above, both DiamondRock Hospitality Company and Pebblebrook Hotel Trust have a grade of B. For those focusing solely on a company’s estimate revisions, other financial metrics will need to be evaluated to determine whether DiamondRock Hospitality Company or Pebblebrook Hotel Trust is a better fit.

Don’t Forget Your Free Special Report on How A+ Grades Can Help You Make Investment Decisions

Other DiamondRock Hospitality Company and Pebblebrook Hotel Trust Grades

In addition to Estimate Revisions, Quality and Growth, A+ Investor also provides grades for Value and Momentum.

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Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming.

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether DiamondRock Hospitality Company and Pebblebrook Hotel Trust pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, DiamondRock Hospitality Company or Pebblebrook Hotel Trust Stock?

Overall, DiamondRock Hospitality Company stock has a Growth Score of 32, Estimate Revisions Score of 77 and Quality Score of 71.

Pebblebrook Hotel Trust stock has a Growth Score of 69, Estimate Revisions Score of 61 and Quality Score of 61.

Comparing DiamondRock Hospitality Company and Pebblebrook Hotel Trust’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Learn More About A+ Investor

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.



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