Why DiamondRock Hospitality Remains A Core Part Of My Income Portfolio
- I have been lightening my allocation to high-yield sectors such as REITs and energy partnerships since the conclusion of the first half of 2014.
- This is prudent given interest rates should rise from here and valuations are less attractive than a year ago. One exception is lodging REITs given improving fundamentals in the sector.
- DiamondRock Hospitality has provided over 40% returns, including dividends, since I last did a deep dive on it in June 2013. Why I see further upside ahead is profiled below.