Jefferies Reiterates Hold Rating On DiamondRock

According to Jefferies, DiamondRock Hospitality DRH Hold rating is reiterated. Jefferies said that it believes the lower than expected performance in 2Q11 reaffirms the belief that DRH's portfolio remains underrepresented in top markets as compared with other REITs and is bearish for the shares in the near term. “While the company's recent acquisitions, particularly in NYC, will likely improve the positioning of the portfolio over the long term, our enthusiasm remains tempered relative to other names.” DiamondRock Hospitality closed yesterday at $10.23.