Company: DRH-PA
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001298946-25-000077
Chunk: 95

Company: DiamondRock Hospitality Co
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 95
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 our capital structure (primarily interest), our asset base (primarily depreciation and amortization), and our corporate-level expenses.  With respect to Hotel Adjusted EBITDA, we believe that excluding the effect of corporate-level expenses 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 June 30,Six Months Ended June 30,20252024(As Adjusted)(1)20252024(As Adjusted)(1)Net income$41,039 $24,631 $52,954 $32,989 Interest expense14,868 16,202 30,026 32,448 Income tax expense991 1,368 149 278 Real estate related depreciation and amortization 28,156 27,873 56,048 56,186 EBITDA/EBITDAre85,054 70,074 139,177 121,901 Non-cash lease expense and other amortization1,284 1,555 2,583 3,073 Share-based compensation expense (2)2,891 2,512 3,556 5,147 Hotel pre-opening costs321 535 344 769 Terminated transaction costs907 — 907 — Severance costs— 20,362 20,362 Adjusted EBITDA90,457 95,038 146,567 151,252 Corporate expenses5,655 5,636 12,003 11,884 Interest (income) and other (income) expense, net(752)(1,186)(1,546)(2,234)Hotel Adjusted EBITDA$95,360 $99,488 $157,024 $160,902 

(1)Effective January 1, 2025, we exclude share-based compensation expense from our calculation of Adjusted EBITDA