Economic Sensitivity Affecting Demand: Revenue for DRH is highly dependent on general economic conditions, consumer and business travel sentiment, and discretionary spending, which can significantly decline during economic downturns, recessions, or periods of high inflation.

Interest Rate Volatility and Debt Costs: As a REIT, DRH relies on debt financing, and rising interest rates can increase borrowing costs, reduce the availability of capital for acquisitions or renovations, and negatively impact profitability and cash flow.

Intense Competition in Key Markets: DRH operates in highly competitive urban and resort markets with numerous existing hotels and new supply, which can pressure occupancy rates, average daily rates (ADR), and profit margins across its portfolio.