Company: DRH-PA
Filing Date: 2025-03-17
Form Type: DEF 14A
Source: 0001298946-25-000038
Chunk: 56

Company: DiamondRock Hospitality Co
Filing Date: 2025-03-17
Form: DEF 14A
Chunk 56
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ile                                              |     | 50%                           |
| 50th Percentile                                              |     | 100%                          |
| > or Equal to 75th Percentile                                |     | 150%                          |

The number of PSUs earned is linearly interpolated for achievement in between each of the performance levels. The number of PSUs earned is subject to a negative TSR cap that limits the number of PSUs earned if absolute TSR is negative for any performance period. If the absolute TSR is negative but the Company ranks above the 50 th percentile for relative TSR, then the number of PSUs actually awarded will be reduced by 25% of the number of PSUs earned but subject to a floor of 100% of the target PSUs. The purpose of this reduction is to recognize that, while the Company may have outperformed its peers, it did not produce a positive return for its stockholders.

The Company's relative TSR for the three-year performance period ended February 2025 ranked at the 60th percentile, which would have resulted in 120% of the target number of relative total stockholder PSUs being earned and awarded. However, because our absolute TSR was negative for the performance period, the payout was capped at 100% of target.

The hotel market share PSUs are based on improvement in market share for each of the Company’s hotels during the three-year performance period. This is determined by establishing a baseline for each hotel of how well it is performing against its competitive set in its market at the beginning of the performance period. This is based on a report prepared for each hotel by STR Global, a well-recognized and universally accepted benchmarking service for the hospitality industry (“STR Report”). Improving the market share of our hotels leads to stronger results for our entire portfolio. At the end of the three-year performance period, a STR Report is again generated for each of our hotels. If 50% of our hotels have shown improvement by capturing a larger share of the market from its competitors over that three-year period, then the target number of PSUs for this component has been earned. The number of PSUs earned is calculated in accordance with the following:

#### DiamondRock Hospitality472025 Proxy Statement
| Compensation Discussion and Analysis |

| Percentage of Hotels with Market Share Improvement |     | Percent of Target PSUs Earned |
| < 30%                                              |     | 0%                            |
| 30%                                                |     | 50%                           |
| 50%                                                |     | 100