Company: DRH-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001298946-25-000077
Chunk: 15

Company: DiamondRock Hospitality Co
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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:Actual atCovenant June 30, 2025Maximum leverage ratio (1)60%25.7%Minimum fixed charge coverage ratio (2)1.50x3.14xSecured recourse indebtednessLess than 45% of Total Asset Value6.5%Maximum unencumbered leverage ratio60%25.5%Minimum unencumbered implied debt service coverage ratio1.20x2.94x_____________________________(1)Leverage ratio is net indebtedness, as defined in the Credit Agreement, divided by total asset value, defined in the Credit Agreement as the value of our owned hotels based on hotel net operating income divided by a defined capitalization rate. (2)Fixed charge coverage ratio is Adjusted EBITDA, generally defined in the Credit Agreement as EBITDA less FF&E reserves, for the most recent trailing 12 month period, to fixed charges, which is defined in the Credit Agreement as interest expense, all regularly scheduled principal payments and payments on capitalized lease obligations, for the same 12 month period. The components of the Company's interest expense consist of the following (in thousands):Three Months Ended June 30,Six Months Ended June 30, 2025202420252024Unsecured term loan interest$10,868 $11,368 $21,630 $22,755 Mortgage debt interest2,699 4,009 5,791 8,044 Credit facility interest and unused fees312 312 620 623 Amortization of debt issuance costs521 513 1,056 1,026 Finance lease expense(1)468 — $929 $— $14,868 $16,202 $30,026 $32,448 _____________(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):

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Fair Value of Assets (Liabilities)Hedged DebtTypeFixed RateIndexEffective DateMaturity DateNotional AmountJune 30,2025December 31, 2024Senior unsecured term loansSwap3.36 %SOFRMarch 1, 2023January 1, 2028$75,000 32 1,328 Senior unsecured term loansSwap3.50