Company: DRH-PA
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001298946-25-000049
Chunk: 55

Company: DiamondRock Hospitality Co
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 8
Chunk 55
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 determination of the grant-date fair values of our PSUs included the following assumptions:Award Grant DateVolatilityRisk-Free RateTotal Stockholder Return PSUsHotel Market Share PSUs (1)February 22, 202271.4%1.74%$9.84$9.56August 9, 202273.3%3.20%$9.65$9.32February 23, 202374.5%4.40%$9.22$8.94May 7, 202436.5%4.64%$8.03$8.72March 3, 202532.0%3.93%$10.53N/A______________________(1)There were no hotel market share PSUs granted in 2025. A summary of our PSUs from January 1, 2025 to March 31, 2025 is as follows:Number ofTarget UnitsWeighted-Average GrantDate FairValueUnvested balance at January 1, 20251,108,574 $9.02 Granted607,533 10.16 Additional units from dividends29,073 8.77 Vested (1)(304,125)9.64 Unvested balance at March 31, 20251,441,055 $9.36 ______________________

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(1)The number of shares of common stock earned for the PSUs vested in 2025 was equal to 99.29% of the PSU Target Award.The total unvested PSUs as of March 31, 2025 are expected to vest as follows: 37,129 during 2025, 382,284 during 2026, 414,109 during 2027, and 607,533 during 2028. The number of shares earned upon vesting is subject to the attainment of the performance targets described above. As of March 31, 2025, the unrecognized compensation cost related to the PSUs was $7.7 million and is expected to be recognized on a straight-line basis over a weighted average period of 31 months. We recorded $0.5 million and $0.9 million of compensation expense related to the PSUs for the three months ended March 31, 2025 and 2024, respectively.  LTIP UnitsLTIP units are designed to offer executives a long-term incentive comparable to restricted stock, while potentially allowing