Company: DRH-PA
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001298946-25-000015
Chunk: 84

Company: DiamondRock Hospitality Co
Filing Date: 2025-02-28
Form: 10-K
Item: Item 7
Chunk 84
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 they do not reflect the underlying performance of the Company.

Hotel Adjusted EBITDA

We believe that Hotel Adjusted EBITDA provides our investors with a useful financial measure to evaluate our hotel operating performance, excluding the impact of our capital structure (primarily interest), our asset base (primarily depreciation and amortization), and our corporate-level expenses.  With respect to Hotel Adjusted EBITDA, we believe that excluding the effect of corporate-level expenses provides a more complete understanding of the operating results over which individual hotels and third-party management companies have direct control.  We believe property-level results provide investors with supplemental information on the ongoing operational performance of our hotels and effectiveness of the third-party management companies operating our business on a property-level basis. Hotel Adjusted EBITDA margins are calculated as Hotel Adjusted EBITDA divided by total hotel revenues.  

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

Year Ended December 31,202420232022Net income$48,250 $86,635 $109,705 Interest expense65,516 65,072 38,283 Income tax expense1,541 317 2,607 Real estate related depreciation and amortization 113,588 111,302 108,849 EBITDA228,895 263,326 259,444 Impairment losses34,169 941 2,843 Loss on sale of hotel properties (1)— — 1,659 EBITDAre263,064 264,267 263,946 Non-cash lease expense and other amortization5,970 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)Adjusted EBITDA$290,402 $271,669 $280,570 Corporate expenses32,549 32,048 31,790 Interest (income) and other (income) expense, net(4,337)(2,561)(255)Hotel Adjusted EBITDA$318,614 $301,156 $312,105 

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