Company: DRH-PA
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001298946-25-000085
Chunk: 24

Company: DiamondRock Hospitality Co
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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 2025 to September 30, 2025 is as follows:Number ofTarget UnitsWeighted-Average GrantDate FairValueUnvested balance at January 1, 20251,108,574 $9.02 Granted607,533 10.16 Additional units from dividends74,491 8.08 Vested (1)(342,042)9.62 Unvested balance at September 30, 20251,448,556 $9.31 ______________________(1)The number of shares of common stock earned for the PSUs vested in 2025 was equal to 101.26% of the PSU Target Award.The total unvested PSUs as of September 30, 2025 are expected to vest as follows: 394,436 during 2026, 427,274 during 2027, and 626,846 during 2028. The number of shares earned upon vesting is subject to the attainment of the performance targets described above. As of September 30, 2025, the unrecognized compensation cost related to the PSUs was $6.0 million and is expected to be recognized on a straight-line basis over a weighted average period of 26 months. We recorded $0.9 million and $2.2 million of compensation expense related to the PSUs for the three and nine months ended September 30, 2025, respectively. We recorded $0.4 million and $3.8 million of compensation expense related to the PSUs for the three and nine months ended September 30, 2024, respectively, which included $1.8 million of accelerated compensation expense related to PSUs for the departures of our former Chief Executive Officer and Chief Investment Officer. The accelerated compensation expense is recorded as severance costs in corporate expenses within the consolidated statements of operations and comprehensive income. These awards will vest at 100% of the PSU Target Award based on their original vesting schedule. LTIP UnitsLTIP units are designed to offer executives a long-term incentive comparable to restricted stock, while potentially allowing 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 

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award, LT