Vanguard Group Lowers Stake in DiamondRock Hospitality

Real estate investment trust sees modest revenue decline but raises dividend and issues upbeat guidance

Mar. 3, 2026 at 12:15am

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Vanguard Group Inc. lowered its position in DiamondRock Hospitality Company (NYSE:DRH) by 0.4% during the third quarter, according to a recent SEC filing. The fund still owns a significant 16.46% stake in the real estate investment trust worth $268.57 million. DiamondRock Hospitality, which owns and manages upscale hotels in urban markets, reported Q4 results that modestly beat expectations on both earnings and revenue. The company also raised its quarterly dividend by 12.5% and issued upbeat guidance for fiscal year 2026, signaling continued recovery in the hospitality industry.

Why it matters

As one of DiamondRock's largest institutional investors, Vanguard's decision to slightly reduce its stake is noteworthy, though the fund still maintains a sizable position. The company's Q4 results and shareholder-friendly moves like the dividend hike suggest cautious optimism about the hotel REIT's prospects, even as revenue remains below pre-pandemic levels. Investors will be watching to see if DiamondRock can execute on its growth plans and capitalize on the ongoing recovery in travel demand.

The details

In the third quarter, Vanguard Group sold 137,244 shares of DiamondRock Hospitality, lowering its total position to 33,739,333 shares. This represents a 0.4% reduction in Vanguard's stake, which was still a substantial 16.46% ownership of the company as of the end of the reporting period. DiamondRock Hospitality, which owns and operates upscale hotels in major U.S. markets, reported Q4 results that beat analyst expectations. The company posted earnings of $0.27 per share, topping the consensus estimate of $0.24, while revenue of $274.53 million also exceeded the $273.18 million forecast. However, revenue was still down 1.6% year-over-year, reflecting ongoing challenges in the hospitality industry. In a positive move, DiamondRock raised its quarterly dividend by 12.5% to $0.09 per share, with an ex-dividend date of March 31. The company also issued upbeat guidance for fiscal year 2026, projecting earnings in the range of $1.09 to $1.16 per share, above the recent analyst consensus of around $0.96 per share.

  • Vanguard Group reduced its DiamondRock Hospitality stake in the third quarter of 2026.
  • DiamondRock Hospitality reported its Q4 2026 results on February 26, 2026.
  • DiamondRock Hospitality's increased quarterly dividend of $0.09 per share will have an ex-dividend date of March 31, 2026.

The players

Vanguard Group Inc.

A major institutional investor and one of the world's largest asset management firms, with over $8 trillion in assets under management.

DiamondRock Hospitality Company

A real estate investment trust that owns and operates upscale, full-service hotels in urban gateway markets across the United States.

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