Company: DRH-PA
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001298946-25-000049
Chunk: 100

Company: DiamondRock Hospitality Co
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 2
Chunk 100
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 provides a more complete understanding of the operating results over which individual hotels and third-party management companies have direct control.  We believe property-level results provide investors with supplemental information on the ongoing operational performance of our hotels and effectiveness of the third-party management companies operating our business on a property-level basis. Hotel Adjusted EBITDA margins are calculated as Hotel Adjusted EBITDA divided by total hotel revenues.  

The following table is a reconciliation of our U.S. GAAP net income to EBITDA, EBITDAre, Adjusted EBITDA and Hotel Adjusted EBITDA (in thousands):

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Three Months Ended March 31,20252024 (As Adjusted)(1)Net income$11,915 $8,358 Interest expense15,158 16,246 Income tax benefit(842)(1,090)Real estate related depreciation and amortization 27,892 28,313 EBITDA/EBITDAre54,123 51,827 Non-cash lease expense and other amortization1,299 1,518 Share-based compensation expense (2)665 2,635 Hotel pre-opening costs23 234 Adjusted EBITDA56,110 56,214 Corporate expenses6,348 6,248 Interest (income) and other (income) expense, net(794)(1,048)Hotel Adjusted EBITDA$61,664 $61,414 

(1)Effective January 1, 2025, we exclude share-based compensation expense from our calculation of Adjusted EBITDA. Amounts reported for 2024 have been adjusted to reflect the current year presentation.

(2)Amount includes $0.7 million of non-cash realized gains related to our deferred compensation plan for the three months ended March 31, 2025.

The following table is a reconciliation of our U.S. GAAP net income to FFO and Adjusted FFO (in thousands):

Three Months Ended March 31,20252024 (As Adjusted)(1)Net income$11,915 $8,358 Real estate related depreciation and amortization 27,892 28,313 FFO39,807 36,671 Distributions to preferred stockholders(2,454)(2,454)FFO available to common stock and unit holders37,353 34,217 Non-cash lease expense and other amortization1,475 1,