Company: DRH-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001298946-25-000077
Chunk: 16

Company: DiamondRock Hospitality Co
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 %SOFRMarch 1, 2023January 1, 2027$75,000 90 747 Senior unsecured term loansSwap3.27 %SOFROctober 1, 2024January 1, 2028$37,500 96 757 Senior unsecured term loansSwap3.27 %SOFROctober 1, 2024January 1, 2028$37,500 96 758 Senior unsecured term loansSwap3.07 %SOFRJanuary 2, 2025January 1, 2027$25,000 188 456 Senior unsecured term loansSwap3.25 %SOFRJanuary 2, 2025January 1, 2026$75,000 330 628 $832 $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 June 30,Six Months Ended June 30,Effect of derivative instrumentsLocation in Statements of Operations and Comprehensive Income2025202420252024Loss (gain) recognized in other comprehensive incomeUnrealized loss (gain) on interest rate derivative instruments$1,294 $1,355 $3,841 $394 Interest (income) for derivatives that were designated as cash flow hedgesInterest expense$(817)$(2,351)$(1,638)$(4,708)During the next 12 months, we estimate that $1.5 million will be reclassified from other comprehensive income as a decrease to interest expense.

7.  Fair Value Measurements

The fair value of certain financial assets and liabilities and other financial instruments are as follows (in thousands):June 30, 2025December 31, 2024Carrying   Amount (1)Fair ValueCarrying    Amount (1)Fair ValueDebt$1,020,320 $1,020,279 $1,095,294 $1,092,443 _______________(1)The carrying amount of debt is net of un