Goldman Sachs Downgrades Diamondrock Hospitality (DRH) to Sell, Facing Pressures

Goldman Sachs downgraded Diamondrock Hospitality (NYSE: DRH) from Neutral to Sell with a price target of $7.75 (from $9.50) and lowered 2013 EBITDA by 5%.

"While DiamondRock has a strong balance sheet, high quality hotels, and shares which have been under pressure (down 11% since October 1 vs. down 2% for the S&P), the company faces a combination of exposure in difficult markets, large renovations and a high valuation which we believe will drive share underperformance," the firm comments.

The firm is now 6.4% below consensus for DiamondRock EBITDA and expect minimal margin expansion and only 4.5% RevPAR growth.

For an analyst ratings summary and ratings history on Diamondrock Hospitality click here. For more ratings news on Diamondrock Hospitality click here.

Shares of Diamondrock Hospitality closed at $8.50 yesterday.

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