Company: DRH-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001298946-25-000077
Chunk: 58

Company: DiamondRock Hospitality Co
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 58
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 rate swaps.(2)Interest rate as of June 30, 2025 was 5.74%.(3)Maturity date may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions.(4)Excludes debt issuance costs related to our senior unsecured credit facility, which are included within Prepaid and Other Assets on the accompanying consolidated balance sheets.(5)Includes the effect of interest rate swaps. See Note 6 for additional disclosures on interest rate swaps.Mortgage Debt

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We have incurred limited recourse, property specific mortgage debt secured by certain of our hotels. In the event of default, the lender may only foreclose on the secured assets; however, in the event of fraud, misapplication of funds or other customary recourse provisions, the lender may seek payment from us. On May 6, 2025, we repaid the Worthington Renaissance Fort Worth Hotel mortgage loan using cash on hand. As of June 30, 2025, two of our 36 hotels were secured by mortgage loans which mature in July and November 2025. On July 2, 2025, the Company drew $60.0 million on its existing revolving credit facility, the proceeds from which were used to repay the Hotel Clio mortgage loan on its maturity date of July 3, 2025. The $60.0 million drawn on the existing revolving credit facility was repaid on July 22, 2025.Our mortgage debt contains certain property specific covenants and restrictions, including minimum debt service coverageratios or debt yields that trigger “cash trap” provisions, as well as restrictions on incurring additional debt without lender consent. Such cash trap provisions are triggered when the hotel’s operating results fall below a certain debt service coverage ratio or debt yield. When these provisions are triggered, all of the excess cash flow generated by the hotel is deposited directly into cash management accounts for the benefit of our lenders until a specified debt service coverage ratio or debt yield is reached and maintained for a certain period of time. Such provisions do not provide the lender with the right to accelerate repayment of the underlying debt. We had no cash traps in effect as of  June 30, 2025 and December 31, 2024. Senior Unsecured Credit Facility and Unsecured Term Loans As of June 30, 2025, we were party to a Sixth Amended and Restated Credit Agreement (the “Credit Agreement”) that provided us with a