Company: DRH-PA
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001298946-25-000049
Chunk: 49

Company: DiamondRock Hospitality Co
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 8
Chunk 49
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 in the Credit Agreement as interest expense, all regularly scheduled principal payments and payments on capitalized lease obligations, for the same 12 month period. 

-9-

The components of the Company's interest expense consist of the following (in thousands):Three Months Ended March 31, 20252024Unsecured term loan interest$10,762 $11,387 Mortgage debt interest3,092 4,034 Credit facility interest and unused fees308 312 Amortization of debt issuance costs535 513 Finance lease expense(1)461 — $15,158 $16,246 _____________(1)In October 2024, we extended the term on one of our ground leases, and, as a result, the lease classification changed from an operating lease to a finance lease.

6. Derivatives

We have the following derivatives (dollars in thousands):Fair Value of Assets (Liabilities)Hedged DebtTypeFixed RateIndexEffective DateMaturity DateNotional AmountMarch 31,2025December 31, 2024$500M Senior unsecured term loansSwap3.36 %SOFRMarch 1, 2023January 1, 2028$75,000 487 1,328 $500M Senior unsecured term loansSwap3.50 %SOFRMarch 1, 2023January 1, 2027$75,000 271 747 $500M Senior unsecured term loansSwap3.27 %SOFROctober 1, 2024January 1, 2028$37,500 330 757 $500M Senior unsecured term loansSwap3.27 %SOFROctober 1, 2024January 1, 2028$37,500 331 758 $500M Senior unsecured term loansSwap3.07 %SOFRJanuary 2, 2025January 1, 2027$25,000 274 456 $500M Senior unsecured term loansSwap3.25 %SOFRJanuary 2, 2025January 1, 2026$75,000 434 628 $2,127 $4,674 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 not