Company: DRH-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001298946-25-000077
Chunk: 38

Company: DiamondRock Hospitality Co
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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 of the following (dollars in thousands):

Six Months Ended June,Change20252024$%Rooms$91,115 $91,553 $(438)(0.5)%Food and beverage96,965 97,956 (991)(1.0)%Other departmental and support expenses134,005 132,417 1,588 1.2 %Management fees12,424 13,318 (894)(6.7)%Franchise fees19,051 19,593 (542)(2.8)%Other property-level expenses52,916 53,806 (890)(1.7)%Total hotel operating expenses$406,476 $408,643 $(2,167)(0.5)%

Our hotel operating expenses decreased $2.2 million from the six months ended June 30, 2024 to the six months ended June 30, 2025, $5.7 million of which was from the non-comparable properties. The offsetting increase of $3.5 million was primarily due to higher property tax assessments primarily related to our Chicago properties.

Depreciation and amortization. Depreciation and amortization on our hotel buildings is generally recorded over a 40-year period subsequent to acquisition. Depreciable lives of hotel furniture, fixtures and equipment are estimated as the time period between the acquisition date and the date that the hotel furniture, fixtures and equipment will be replaced. Our depreciation and amortization expense remained approximately flat from the six months ended June 30, 2024 to the six months ended June 30, 2025.

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Corporate expenses. Corporate expenses principally consist of employee-related costs, including payroll, bonus, restricted stock and benefits. Corporate expenses also include corporate operating costs, professional fees and directors' fees. Our corporate expenses decreased $20.3 million from the six months ended June 30, 2024 to the six months ended June 30, 2025, primarily due to severance expense recognized during the six months ended June 30, 2024, in connection with the leadership changes made in April 2024.

Interest expense. Our interest expense decreased $2.4 million from the six months ended June 30, 2024 to the six months ended June 30, 2025 and was comprised of the following (dollars in thousands): 

Six Months Ended June 30,Change20252024$%Unsecured term loan interest$21,630