Company: DRH-PA
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001298946-25-000049
Chunk: 17

Company: DiamondRock Hospitality Co
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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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 them a more favorable income tax treatment. Each year, executives have the option to elect to receive their annual grant of share-based compensation as either LTIP units or restricted stock awards. Each LTIP unit awarded is deemed equivalent to an award of one share of common stock reserved under the 2016 Plan or 2024 Plan, as applicable. At the time of award, LTIP units do not have full economic parity with common OP units, but can achieve such parity over time upon the occurrence of specified events in accordance with partnership tax rules.A summary of our LTIP units from January 1, 2025 to March 31, 2025 is as follows:Number of UnitsWeighted-Average GrantDate FairValueUnvested balance at January 1, 2025140,127 $9.85 Vested (1)(32,492)8.72 Unvested balance at March 31, 2025107,635 $8.96 ______________________(1)As of March 31, 2025, all vested LTIP units have achieved economic parity with common OP units and have been converted to common OP units. 

The total unvested LTIP units as of March 31, 2025 are expected to vest as follows: 14,217 during 2025 and 46,709 during