PEB vs RLJ vs SHO vs DRH vs XHR

For growth investors, Sunstone Hotel Investors, Inc.

(SHO) is the stronger pick with 6. 0% revenue growth year-over-year, versus -1. 4% for RLJ Lodging Trust (RLJ). DiamondRock Hospitality Company (DRH) offers the better valuation at 24. 2x trailing P/E (20. 2x forward), making it the more compelling value choice. Analysts rate Pebblebrook Hotel Trust (PEB) a "Hold" — based on 28 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, DiamondRock Hospitality Company (DRH) is the cheapest at 24.

2x versus RLJ Lodging Trust at 592. 6x. On forward P/E, DiamondRock Hospitality Company is actually cheaper at 20. 2x.

Over the past 5 years, DiamondRock Hospitality Company (DRH) delivered a total return of +16.

3%, compared to -38. 3% for Pebblebrook Hotel Trust (PEB). Over 10 years, the gap is even starker: DRH returned +48. 1% versus RLJ's -26. 8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), DiamondRock Hospitality Company (DRH) is the lower-risk stock at 0.

97β versus Pebblebrook Hotel Trust's 1. 36β — meaning PEB is approximately 39% more volatile than DRH relative to the S&P 500. On balance sheet safety, Sunstone Hotel Investors, Inc. (SHO) carries a lower debt/equity ratio of 48% versus 121% for Xenia Hotels & Resorts, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Sunstone Hotel Investors, Inc.

(SHO) is pulling ahead at 6. 0% versus -1. 4% for RLJ Lodging Trust (RLJ). On earnings-per-share growth, the picture is similar: Xenia Hotels & Resorts, Inc. grew EPS 326. 7% year-over-year, compared to -130. 8% for Pebblebrook Hotel Trust. Over a 3-year CAGR, RLJ leads at 4. 2% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

DiamondRock Hospitality Company (DRH) is the more profitable company, earning 9.

1% net margin versus -4. 5% for Pebblebrook Hotel Trust — meaning it keeps 9. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: DRH leads at 14. 4% versus 5. 1% for PEB. At the gross margin level — before operating expenses — DRH leads at 55. 2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, DiamondRock Hospitality Company (DRH) trades at 20.

2x forward P/E versus 127. 0x for Sunstone Hotel Investors, Inc. — 106. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for SHO: 4. 8% to $10. 50.

All stocks in this comparison pay dividends.

RLJ Lodging Trust (RLJ) offers the highest yield at 7. 0%, versus 0. 3% for Pebblebrook Hotel Trust (PEB).

For long-horizon retirement investors, DiamondRock Hospitality Company (DRH) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

97), 4. 4% yield). Both have compounded well over 10 years (DRH: +48. 1%, PEB: -26. 2%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Real Estate sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: PEB is a small-cap quality compounder stock; RLJ is a small-cap income-oriented stock; SHO is a small-cap quality compounder stock; DRH is a small-cap income-oriented stock; XHR is a small-cap income-oriented stock. RLJ, SHO, DRH, XHR pay a dividend while PEB does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.