Company: DRH-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001298946-25-000077
Chunk: 68

Company: DiamondRock Hospitality Co
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 68
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 in 2025 was equal to 99.29% of the PSU Target Award.The total unvested PSUs as of June 30, 2025 are expected to vest as follows: 37,548 during the remainder of 2025, 386,590 during 2026, 418,776 during 2027, and 614,378 during 2028. The number of shares earned upon vesting is subject to the attainment of the performance targets described above. As of June 30, 2025, the unrecognized compensation cost related to the PSUs was $6.9 million and is expected to be recognized on a straight-line basis over a weighted average period of 28 months. We recorded $0.8 million and $1.3 million of compensation expense related to the PSUs for the three and six months ended June 30, 2025, respectively. We recorded $2.5 million and $3.4 million of compensation expense related to the PSUs for the three and six months ended June 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, 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 June 30, 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 June