11 Best REIT Stocks To Buy Under $10

5. DiamondRock Hospitality Company (NYSE:DRH)

Share Price as of October 26: $8.78

Number of Hedge Fund Holders: 21

DiamondRock Hospitality Company (NYSE:DRH) is a real estate investment trust that owns a portfolio of geographically diversified hotels and resorts concentrated in top gateway markets and destination resort locations. The firm has the vision of becoming the premier allocator of capital in the lodging industry.

DRH’s current portfolio encompasses 36 premium hotels and resorts with over 9,700 rooms. The firm maintains one of the most liquid portfolios among peers. DRH has strategically positioned its portfolio to be operated both under leading global brand families and independent boutique hotels in the lifestyle segment. DRH hotels are situated in low-supply markets, with some resort markets having negligible supply growth thereby creating a favorable supply backdrop. Furthermore, the REIT benefits from the strength and resiliency of leisure travel with the intent to spend on leisure travel outperforming overall spending. Business travel is also experiencing continued incremental growth.

For the second quarter, DiamondRock Hospitality Company (NYSE:DRH) posted an adjusted EBITDA of $92.5 million, up 7.8% year-over-year. The REIT’s RevPAR and Total RevPAR were up 2.2% and 4.5% year-over-year, outperforming its peers. Net income was $24.6 million while earnings per diluted share was $0.10.

With a well-positioned portfolio, a strong position among peers, and a favorable secular outlook, the growth potential for DiamondRock Hospitality Company (NYSE:DRH) is bright. In addition to a high-performing and liquid portfolio, the REIT also boasts a flexible balance sheet.