Company: DRH-PA
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001298946-25-000085
Chunk: 60

Company: DiamondRock Hospitality Co
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 60
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 and nine months ended September 30, 2025.As of September 30, 2025, interest was paid on the periodic advances on the revolving credit facility and amounts outstanding on the term loans at varying rates, based upon the adjusted Secured Overnight Financing Rate (“SOFR”), as defined in the Amended Credit Facility, plus an applicable margin. The applicable margin is based upon our leverage ratio, as follows:Leverage RatioApplicable Margin for Revolving LoansApplicable Margin for Term LoansLess than 30%1.40%1.35%Greater than or equal to 30% but less than 35%1.45%1.40%Greater than or equal to 35% but less than 40%1.50%1.45%Greater than or equal to 40% but less than 45%1.60%1.55%Greater than or equal to 45% but less than 50%1.80%1.75%Greater than or equal to 50% but less than 55%1.95%1.85%Greater than or equal to 55%2.25%2.20% The Amended Credit Facility contains various financial covenants. A summary of the most significant covenants is as follows:

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Actual atCovenant September 30, 2025Maximum leverage ratio (1)60%24.8%Minimum fixed charge coverage ratio (2)1.50x3.24xSecured recourse indebtednessLess than 45% of Total Asset Value0.0%Maximum unencumbered leverage ratio60%32.1%Minimum unencumbered implied debt service coverage ratio1.20x2.33x_____________________________(1)Leverage ratio is net indebtedness, as defined in the Amended Credit Facility, divided by total asset value, defined in the Amended Credit Facility as the value of our owned hotels based on hotel net operating income divided by a defined capitalization rate. (2)Fixed charge coverage ratio is Adjusted EBITDA, generally defined in the Amended Credit Facility as EBITDA less FF&E reserves, for the most recent trailing 12 month period, to fixed charges, which is defined in the Amended Credit Facility as interest expense, all regularly scheduled principal payments and payments on capitalized lease obligations, for the same 12 month period. Mortgage DebtWe previously incurred limited recourse, property specific mortgage debt secured by certain of our hotels. On May