Company: DRH-PA
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001298946-25-000015
Chunk: 130

Company: DiamondRock Hospitality Co
Filing Date: 2025-02-28
Form: 10-K
Item: Item 16
Chunk 130
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 equal to their carrying amounts.

 8.  Leases

Seven of our hotel ground leases and one parking lot area are classified as operating leases, for which we have recorded right-of-use assets and lease liabilities. The lease liabilities for our operating leases assume the exercise of all available extension options, as we believe they are reasonably certain to be exercised. The components of operating lease expense are included in other property-level expenses in our consolidated statements of operations and comprehensive income.In October 2024, we executed an extension of the ground lease underlying the Courtyard New York Manhattan/Fifth Avenue to add a second renewal option for an additional 36 years. Based on the modification of the lease terms, the ground lease is now classified as a finance lease. We remeasured the right-of-use asset and lease liability based on the present value of the future lease payments over the updated lease term. Costs related to the finance lease are included in interest expense and other property-level expenses within the consolidated statements of operations and comprehensive income. The following table sets forth the lease-related assets and liabilities in our consolidated balance sheet as of December 31, 2024 and 2023 (in thousands):

F-21

Location in Consolidated Balance SheetsYear Ended December 31,20242023AssetsOperating lease assets, netRight-of-use assets$89,931 $97,692 Finance lease assets, netPrepaid and other assets8,179 — Total lease assets$98,110 $97,692 LiabilitiesOperating lease liabilitiesLease liabilities$85,235 $112,866 Finance lease liabilitiesAccounts payable and accrued expenses31,632 — Total lease liabilities$116,867 $112,866 Weighted-average remaining lease termOperating leases63 yearsFinance leases97 yearsWeighted-average discount rateOperating leases5.77 %Finance leases5.91 %The following table sets forth the lease costs related to the operating and finance leases included in the consolidated statements of operations and comprehensive income for the year ended December 31, 2024, 2023, and 2022 (in thousands): Location in Statements of Operations and Comprehensive IncomeYear Ended December 31,202420232022Operating lease costOther property-level expenses$10,889 $11,106 11,255 Finance lease costs:Amortization of lease assetsOther property-level expenses14 — — Interest on lease liabilitiesInterest expense122 — — Total lease costs$11,025 $11