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Janney Montgomery Scott Initiates Coverage on DiamondRock Hospitality (DRH) with a Buy

October 15, 2009 7:42 AM EDT
DRH Hot Sheet
Rating Summary:
    1 Buy, 7 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Janney Montgomery Scott initiates coverage on DiamondRock Hospitality (NYSE: DRH) with a Buy. Price target $10.25.

Janney analyst says, "While the hotel sector continues to experience double-digit RevPAR declines, we believe that DiamondRock's upper upscale focused portfolio positions the REIT to outperform the hotel industry average heading into the eventual lodging recovery. With an experienced and well-connected management team, DiamondRock can leverage its long-standing relationships and well-capitalized balance sheet to make accretive acquisitions as opportunities arise. With inorganic growth from acquisitions and organic growth from occupancy driven rate compression and margin expansion, we believe DiamondRock can produce several years of double-digit growth beginning in 2011."

To see more analyst ratings on DRH Click Here.

DiamondRock Hospitality Company, a lodging focused real estate company, owns and operates premium hotels and resorts in the United States.

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