Is DiamondRock Hospitality Co (DRH) Halal?

NASDAQ Real Estate United States $1.9B
✗ NOT HALAL
Confidence: 90/100
DiamondRock Hospitality Co (DRH) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 60.2% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. DiamondRock Hospitality Co operates in the Real Estate sector.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 60.2%
/ 30%
4.2%
/ 30%
7.4%
/ 30%
0.38%
/ 5%
✗ NOT HALAL
DJIM 60.2%
/ 33%
4.2%
/ 33%
7.4%
/ 33%
0.38%
/ 5%
✗ NOT HALAL
MSCI 37.2%
/ 33%
2.6%
/ 33%
4.6%
/ 33%
0.38%
/ 5%
✗ NOT HALAL
S&P 60.2%
/ 33%
4.2%
/ 33%
7.4%
/ 33%
0.38%
/ 5%
✗ NOT HALAL
FTSE 37.2%
/ 33%
2.6%
/ 33%
4.6%
/ 50%
0.38%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
21.2
Forward: 17.9
EPS
$0.44
Dividend Yield
386.0%
Payout: 72.7%
P/B Ratio
1.3
EV/EBITDA
11.0
EV: $3.1B
Revenue
$1.1B
Growth: -1.6%
Beta
1.0
Average volatility
Current Ratio
2.9

Profitability

Gross Margin 27.8%
Operating Margin 14.5%
Net Margin 9.1%
Return on Equity (ROE) 6.7%
Return on Assets (ROA) 3.3%

Cash Flow & Balance Sheet

Operating Cash Flow$244M
Free Cash Flow$162M
Total Debt$1.2B
Debt-to-Equity83.6
Current Ratio2.9
Total Assets$3.0B

Price & Trading

Last Close$9.59
50-Day MA$9.60
200-Day MA$8.63
Avg Volume2.6M
Beta1.0
52-Week Range
$6.19
$10.67

About DiamondRock Hospitality Co (DRH)

CEO
Mr. Jeffrey John Donnelly C.F.A.
Employees
35
Sector
Real Estate
Industry
REIT - Hotel & Motel
Country
United States
Exchange
NASDAQ
Market Cap
$1.9B
Currency
USD

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 35 premium quality hotels and resorts with approximately 9,600 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 incorporated in May 26th 2004.

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Frequently Asked Questions

Is DiamondRock Hospitality Co (DRH) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), DiamondRock Hospitality Co is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is DiamondRock Hospitality Co's debt ratio?

DiamondRock Hospitality Co's debt ratio is 60.2% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 37.2%.

What are DiamondRock Hospitality Co's key financial metrics?

DiamondRock Hospitality Co has a market capitalization of $1.9B, trailing P/E ratio of 21.2, and revenue of $1.1B. The company maintains a gross margin of 27.8% and a net margin of 9.1%. Return on equity stands at 6.7%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.