Company: DRH-PA
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001298946-25-000049
Chunk: 19

Company: DiamondRock Hospitality Co
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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”). The CODM uses Hotel Adjusted EBITDA to evaluate the ongoing operational performance of our hotels and effectiveness of the third-party management companies operating our business on a property-level basis, in order to make informed decisions on how to allocate resources. Hotel Adjusted EBITDA is also used to monitor budget versus actual results. The monitoring of budgeted versus actual results are used in assessing performance of the segment and in establishing management’s compensation. Hotel Adjusted EBITDA, presented herein, is calculated as EBITDA from hotel operations, adjusted to exclude the following items that are not reflective of our ongoing operating performance or incurred in the normal course of business, and thus excluded from the CODM’s analysis in making day-to-day operating decisions:▪Non-cash lease expense and other amortization▪Cumulative effect of a change in accounting principles▪Gains or losses from early extinguishment of debt▪Hotel acquisition costs▪Severance costs▪Hotel manager transition items ▪Hotel pre-opening costs▪Impairment losses, gains or losses on asset sales and casualty gains or losses; and▪Other items that we believe are not representative of our current or future operating performance.The following table presents revenues for our hotel ownership segment reconciled to our consolidated amounts and Hotel Adjusted EBITDA reconciled to consolidated net income (in thousands):

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Three Months Ended March 31,20252024Revenues:Hotel ownership revenue$254,853 $256,423 Total consolidated revenue254,853 256,423 Significant expenses:Rooms expense43,843 43,968 Food and beverage expense46,417 47,239 Other departmental and support expenses65,286 64,600 Management fees5,415 5,708 Franchise fees9,048 9,026 Property taxes14,281 13,022 Total significant expenses184,290 183,563 Other segment expenses:Other hotel expenses(1)8,899 11,446 Hotel adjusted EBITDA:61,664 61,414 Non-cash lease expense and other amortization1,299 1,518 Hotel pre-opening and manager transition items23 234 Depreciation and amortization27,892 28,313 Corporate expenses7,683 8,904 Interest expense15,158 16,246 Interest income(781)(1,050)Other (income) expense, net(683)(