Company: DRH-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001298946-25-000077
Chunk: 81

Company: DiamondRock Hospitality Co
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 81
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-comparable properties.

Other revenues, which primarily represent spa, parking, resort fees and attrition and cancellation fees, increased by $1.0 million from the three months ended June 30, 2024 to the three months ended June 30, 2025, $0.2 million of which was from the non-comparable properties. The remaining increase of $0.8 million was primarily due to an increase in resort fees and to a lesser extent, spa and parking revenues.

Hotel operating expenses. Hotel operating expenses consists of the following (dollars in thousands):

-24-

Three Months Ended June,Change20252024$%Rooms$47,272 $47,585 $(313)(0.7)%Food and beverage50,548 50,717 (169)(0.3)%Other departmental and support expenses68,719 67,817 902 1.3 %Management fees7,406 8,008 (602)(7.5)%Franchise fees10,003 10,567 (564)(5.3)%Other property-level expenses28,017 27,188 829 3.0 %Total hotel operating expenses$211,965 $211,882 $83 0.0 %

Our hotel operating expenses increased $0.1 million from the three months ended June 30, 2024 to the three months ended June 30, 2025. A decrease of $4.8 million from the non-comparable properties was more than offset by higher property tax assessments primarily related to our Chicago properties.

Depreciation and amortization. Depreciation and amortization on our hotel buildings is generally recorded over a 40-year period subsequent to acquisition. Depreciable lives of hotel furniture, fixtures and equipment are estimated as the time period between the acquisition date and the date that the hotel furniture, fixtures and equipment will be replaced. Our depreciation and amortization expense remained approximately flat from the three months ended June 30, 2024 to the three months ended June 30, 2025.

Corporate expenses. Corporate expenses principally consist of employee-related costs, including payroll, bonus, restricted stock and benefits. Corporate expenses also include corporate operating costs, professional fees and directors' fees. Our corporate expenses decreased $19.1 million from the three months ended June 30, 2024 to the three months ended June 30, 2025, primarily due to severance expense recognized during the three months