Company: DRH-PA
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001298946-25-000049
Chunk: 56

Company: DiamondRock Hospitality Co
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 8
Chunk 56
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 them a more favorable income tax treatment. Each year, executives have the option to elect to receive their annual grant of share-based compensation as either LTIP units or restricted stock awards. Each LTIP unit awarded is deemed equivalent to an award of one share of common stock reserved under the 2016 Plan or 2024 Plan, as applicable. At the time of award, LTIP units do not have full economic parity with common OP units, but can achieve such parity over time upon the occurrence of specified events in accordance with partnership tax rules.A summary of our LTIP units from January 1, 2025 to March 31, 2025 is as follows:Number of UnitsWeighted-Average GrantDate FairValueUnvested balance at January 1, 2025140,127 $9.85 Vested (1)(32,492)8.72 Unvested balance at March 31, 2025107,635 $8.96 ______________________(1)As of March 31, 2025, all vested LTIP units have achieved economic parity with common OP units and have been converted to common OP units. 

The total unvested LTIP units as of March 31, 2025 are expected to vest as follows: 14,217 during 2025 and 46,709 during both 2026 and 2027. As of March 31, 2025, the unrecognized compensation cost related to LTIP unit awards was $0.9 million and the weighted-average period over which the unrecognized compensation expense will be recorded is approximately 25 months. We recorded $0.1 million and $0.4 million of compensation expense related to LTIP unit awards for the three months ended March 31, 2025 and 2024, respectively.   

10.  Earnings Per Share

The following is a reconciliation of the calculation of basic and diluted earnings per share (“EPS”): Three Months Ended March 31,20252024Numerator:Net income attributable to common stockholders (in thousands)$9,403 $5,874 Denominator:Weighted-average number of common shares outstanding—basic208,509,552 211,669,343 Effect of dilutive securities:Unvested restricted common stock328,053 218,366 Shares related to unvested PSUs1,508,465 454,758 Weighted-average number of common shares outstanding—diluted210,346