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Diamond Rock Hospitality Co: Post Call

According to RBC Capital Markets, Diamond Rock Hospitality Co. is well positioned for the rebound in the hospitality sector and is rated outperform with average risk. The REIT has a healthy balance sheet and although there will be some challenges in the near term, long term growth prospects remain promising. DRH's relationship with the Marriott should provide a competitive advantage. The price target is $10/share.

	Q4, 2008	Q4, 2009	2009A	2010E	2011E
Reported FFO		$0.18/share	$0.77/share	$0.52/share	$0.64/share
Operating FFO		$0.16/share	$0.70/share	$0.47/share	$0.59/share
NOI growth	-17.1%	-36.1%
Occupancy	67.8%	65.4%	67.6%	69.6%	71.4%

The Q4, 2009 earnings call can be accessed here: Diamond Rock Hospitality Co.

Disclosure: This article is based on a recent report prepared by analysts for RBC Capital Markets, which make a market in the securities of Diamond Rock Hospitality Co. and may act as principal with regards to sales or purchases of this security.