Company: DRH-PA
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001298946-25-000049
Chunk: 74

Company: DiamondRock Hospitality Co
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 8
Chunk 74
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 applicable management or franchise agreement. As of March 31, 2025, we have set aside $46.8 million for capital projects in property improvement reserves, which are included in restricted cash on our consolidated balance sheets.

We have invested approximately $25.6 million on capital improvements at our hotels during the three months ended March 31, 2025. In 2025, we expect to spend between $85 to $95 million on capital improvements at our hotels, however we are evaluating the timing and extent of certain projects that may be deferred or cancelled. Significant projects currently planned for 2025 include the following:

•Orchards Inn Sedona: We commenced the repositioning of Orchards Inn as the Cliffs at L'Auberge on November 1,

2024. The repositioning will integrate the hotel with the adjacent L'Auberge de Sedona and include construction of a

new pool connecting the two properties, renovation of the guestrooms and creation of a new arrival experience and

new outdoor event space. We expect to complete the project in the third quarter of 2025.

•Hilton Garden Inn New York/Times Square Central: We completed a renovation of the hotel's guestrooms during

the first quarter of 2025. 

•Kimpton Hotel Palomar Phoenix: We expect to commence a renovation of the hotel's guestrooms during

the second quarter of 2025. 

•Courtyard New York Manhattan/Midtown East: We expect to commence a renovation of the hotel's

guestrooms during the fourth quarter of 2025.

Non-GAAP Financial Measures 

We use the following non-GAAP financial measures that we believe are useful to investors as key measures of our operating performance: EBITDA, EBITDAre, Adjusted EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted FFO. These measures should not be considered in isolation or as a substitute for measures of performance in accordance with U.S. GAAP.  EBITDA, EBITDAre, Adjusted EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted FFO, as calculated by us, may not be comparable to other companies that do not define such terms exactly as the Company.

Use and Limitations of Non-GAAP Financial Measures

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Our management and Board of Directors use EBITDA, EBITDAre, Adjusted EBITDA, Hotel Adjusted EBITDA, FFO and Adjusted