Company: DRH-PA
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001298946-25-000085
Chunk: 62

Company: DiamondRock Hospitality Co
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 62
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ober 1, 2024January 1, 2028$37,500 42 758 Unsecured term loansSwap3.07 %SOFRJanuary 2, 2025January 1, 2027$25,000 134 456 Unsecured term loansSwap3.25 %SOFRJanuary 2, 2025January 1, 2026$75,000 140 628 Unsecured term loansSwap3.23 %SOFRJanuary 2, 2026January 1, 2029$75,000 (133)— $168 $4,674 

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Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. During 2025, such derivatives were used to hedge the variable cash flows associated with variable-rate debt. On October 15, 2025, we entered into an additional interest rate swap agreement for a notional amount of $50 million that will be effective January 4, 2027. The table below details the location in the consolidated financial statements of the gains and losses recognized related to derivative financial instruments (in thousands):Three Months Ended September 30,Nine Months Ended September 30,Effect of derivative instrumentsLocation in Statements of Operations and Comprehensive Income2025202420252024Loss recognized in other comprehensive incomeUnrealized loss on interest rate derivative instruments$664 $4,237 $4,505 $4,631 Interest income for derivatives that were designated as cash flow hedgesInterest expense$(847)$(1,155)$(2,485)$(5,863)During the next 12 months, we estimate that $0.8 million will be reclassified from other comprehensive income as a decrease to interest expense.

7.  Fair Value Measurements

The fair value of certain financial assets and liabilities and other financial instruments are as follows (in thousands):September 30, 2025December 31, 2024Carrying   Amount (1)Fair ValueCarrying    Amount (1)Fair ValueDebt$1,098,756 $1,100,000 $1,095,294 $1,092,443 _______________(1)The carrying amount of debt is net of unamortized debt issuance costs.The fair value