Company: DRH-PA
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001298946-25-000049
Chunk: 11

Company: DiamondRock Hospitality Co
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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 %SOFRMarch 1, 2023January 1, 2027$75,000 271 747 $500M Senior unsecured term loansSwap3.27 %SOFROctober 1, 2024January 1, 2028$37,500 330 757 $500M Senior unsecured term loansSwap3.27 %SOFROctober 1, 2024January 1, 2028$37,500 331 758 $500M Senior unsecured term loansSwap3.07 %SOFRJanuary 2, 2025January 1, 2027$25,000 274 456 $500M Senior unsecured term loansSwap3.25 %SOFRJanuary 2, 2025January 1, 2026$75,000 434 628 $2,127 $4,674 Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. During 2025, such derivatives were used to hedge the variable cash flows associated with variable-rate debt. The table below details the location in the consolidated financial statements of the gains and losses recognized related to derivative financial instruments (in thousands):Three Months Ended March 31,Effect of derivative instrumentsLocation in Statements of Operations and Comprehensive Income20252024Loss (gain) recognized in other comprehensive incomeUnrealized loss (gain) on interest rate derivative instruments$2,548 $(960)Interest (income) for derivatives that were designated as cash flow hedgesInterest expense$(821)$(2,357)During the next 12 months, we estimate that $1.8 million will be reclassified from other comprehensive income as a decrease to interest expense.

7.  Fair Value Measurements

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The fair value of certain financial assets and liabilities and other financial instruments are as follows (in thousands):March 31, 2025December 31, 2024Carrying   Amount (1)Fair ValueCarrying    Amount (1)Fair ValueDebt$1,092,941 $1,091,988 $1,095,294 $1,092,443 _______________(1)The carrying amount of debt is net of unamortized debt issuance costs.The fair value of our debt