Company: DRH-PA
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001298946-25-000015
Chunk: 85

Company: DiamondRock Hospitality Co
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7
Chunk 85
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1)During the year ended December 31, 2022, we recognized an incremental loss of $1.7 million due to post-closing adjustments related to hotels sold in 2021.(2)During the year ended December 31, 2024, we incurred severance costs related to the executive team changes that occurred in April 2024. During the year ended December 31, 2022, we incurred severance costs associated with the elimination of positions at our hotels. These costs are classified within other hotel expenses on the consolidated statement of operations. 

The following table is a reconciliation of our U.S. GAAP net income to FFO and Adjusted FFO (in thousands):

Year Ended December 31,202420232022Net income$48,250 $86,635 $109,705 Real estate related depreciation and amortization113,588 111,302 108,849 Impairment losses34,169 941 2,843 Loss on sale of hotel properties (1)— — 1,659 FFO196,007 198,878 223,056 Distributions to preferred stockholders(9,817)(9,817)(9,817)FFO available to common stock and unit holders186,190 189,061 213,239 Non-cash lease expense and other amortization6,092 6,156 6,226 Loss on early extinguishment of debt— — 9,766 Hotel pre-opening costs1,006 1,246 — Hotel manager transition items— — 1,164 Severance costs (2)20,362 — (532)Fair value adjustments to interest rate swaps— 2,033 (13,914)Adjusted FFO available to common stock and unit holders$213,650 $198,496 $215,949 

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(1)During the year ended December 31, 2022, we recognized an incremental loss of $1.7 million due to post-closing adjustments related to hotels sold in 2021.(2)During the year ended December 31, 2024, we incurred severance costs related to the executive team changes that occurred in April 2024. During the year ended December 31, 2022, we incurred severance costs associated with the elimination of positions at our hotels. These costs are classified within other hotel expenses on the consolidated statement of operations