Company: DRH-PA
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001298946-25-000085
Chunk: 69

Company: DiamondRock Hospitality Co
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 69
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 their annual grant of share-based compensation as either LTIP units or restricted stock awards. Each LTIP unit awarded is deemed equivalent to an award of one share of common stock reserved under the 2016 Plan or 2024 Plan, as applicable. At the time of 

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award, LTIP units do not have full economic parity with common OP units, but can achieve such parity over time upon the occurrence of specified events in accordance with partnership tax rules.A summary of our LTIP units from January 1, 2025 to September 30, 2025 is as follows:Number of UnitsWeighted-Average GrantDate FairValueUnvested balance at January 1, 2025140,127 $8.90 Vested (1)(46,709)8.90 Unvested balance at September 30, 202593,418 $8.90 ______________________(1)As of September 30, 2025, all vested LTIP units have achieved economic parity with common OP units and have been converted to common OP units. 

The total unvested LTIP units as of September 30, 2025 are expected to vest as follows: 46,709 during both 2026 and 2027. As of September 30, 2025, the unrecognized compensation cost related to LTIP unit awards was $0.6 million and the weighted-average period over which the unrecognized compensation expense will be recorded is approximately 19 months. We recorded $0.1 million and $0.3 million of compensation expense related to LTIP unit awards for the three and nine months ended September 30, 2025, respectively. We recorded $0.1 million and $1.9 million of compensation expense related to LTIP unit awards for the three and nine months ended September 30, 2024, respectively, which included $1.2 million of accelerated compensation expense related to LTIPs for the departures of our former Chief Executive Officer and Chief Investment Officer. The accelerated compensation expense is recorded as severance costs in corporate expenses within the consolidated statements of operations and comprehensive income.  

10.  Earnings Per Share

The following is a reconciliation of the calculation of basic and diluted earnings per share (“EPS”): Three Months Ended September 30,Nine  Months Ended September 30,2025202420252024Numerator:Net income attributable to common stockholders (in thousands)$20,071 $23,978