DiamondRock Hospitality Company

DRH: Is DiamondRock Hospitality Company Halal?

DiamondRock Hospitality Company

NASDAQReal EstateUS

$12.41

+1.80%

Market Cap: 2.5B

Compliance Status

Not Halal

Screened on Jul 17, 2026 · AAOIFI Standard 21

F

Non-Compliant

0Score

Is DiamondRock Hospitality Company (DRH) halal? Not Halal. Based on AAOIFI screening, DiamondRock Hospitality Company passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

Business activity

What the company sells is permissible.

Passed

Company debt

Over the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

45.2% of 30.0% limit

What this means for you

Most scholars advise not holding DRH

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

About DiamondRock Hospitality Company

DiamondRock Hospitality Company (DRH) operates as an internally managed real estate investment trust (REIT), maintaining a distinguished and geographically varied portfolio of hotels. These properties are strategically concentrated in key urban gateways and highly desirable resort locations. The company's holdings include 31 upscale hotels, collectively featuring more than 10,000 rooms. DRH has deliberately positioned these hotels to be managed either under prominent international brand families or as unique, independent lifestyle boutique properties.

Sector: Real Estate · Industry: REIT - Hotel & Motel

Shariah Compliance Status

AAOIFI Standard 21Updated Jul 17, 2026

Business Activity Screen

Passed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Peripheral exposure (still halal, purify this share)
4.0%

Primary business is permissible. AAOIFI allows up to 5% revenue from incidental non-compliant sources, provided the share is purified.

  • REIT - Hotel & Motel: estimated 4.0% peripheral exposure (AAOIFI industry average)

Use the Purification Calculator to compute exactly how much of your dividend income to donate.

Compliance History

Not Halal, unchanged since May 2026.

No status changes recorded since we began tracking.

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: Q1 2026Data source: EDGAR
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Frequently Asked Questions

Is DiamondRock Hospitality Company (DRH) halal to invest in?
DiamondRock Hospitality Company (DRH) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.
Why did DiamondRock Hospitality Company get a F compliance rating?
DiamondRock Hospitality Company (DRH) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 45.2% (limit 30%); interest-bearing deposits of 2.8% (limit 30%); prohibited income of 0.00% (limit 5%). The grade reflects the margin of safety across all three ratios relative to their thresholds.
What could change DiamondRock Hospitality Company's Shariah verdict?
DiamondRock Hospitality Company's verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.
How often is DiamondRock Hospitality Company re-screened for Shariah compliance?
DiamondRock Hospitality Company (DRH) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Jul 17, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.