Company: DRH-PA
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001298946-25-000015
Chunk: 55

Company: DiamondRock Hospitality Co
Filing Date: 2025-02-28
Form: 10-K
Item: Item 2
Chunk 55
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/2029NoneL'Auberge de SedonaEvolution HospitalityAt will with fee10/2029NoneThe Lodge at Sonoma ResortSage HospitalityAt will with fee9/2025NoneMargaritaville Beach House Key WestOcean PropertiesNo7/2027NoneOrchards Inn SedonaEvolution HospitalityAt will with fee10/2029NoneThe Lindy Renaissance Charleston HotelAimbridge HospitalityAt will with no fee9/2025NoneSalt Lake City Marriott Downtown at City CreekHEI Hotels & ResortsAt will with no fee9/2025NoneTranquility Bay Beachfront ResortEOS HospitalityAt will with no fee4/2032Month-to-monthWestin Boston Seaport DistrictAimbridge HospitalityAt will with no fee12/2026NoneWestin Fort Lauderdale Beach ResortHEI Hotels & ResortsAt will with no fee12/2027NoneWestin San Diego BayviewAimbridge HospitalityAt will with no feeN/AMonth-to-monthWestin Washington D.C. City CenterSage HospitalityAt will with fee11/2026One five-year period Worthington Renaissance Fort Worth HotelMarriottNo12/2031Two ten-year periods

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(1)Certain agreements allow for other extension rights that may be only at our option.

(2)Hotel manager is entitled to one five-year extension option upon achievement of a certain level of net operating income, which is significantly above current net operating income at the hotel. 

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(3)Hotel manager is entitled to one five-year extension option if the manager earns an incentive management fee in both 2027 and 2028.  The manager did not earn an incentive management fee in 2024.

(4)On January 30, 2025, the term of the hotel operating agreement was extended to April 30, 2025.

Under our hotel management agreements, the hotel manager receives a base management fee and, if certain financial thresholds are met or exceeded, an incentive management fee. The base management fee is generally payable as a percentage of gross hotel revenues for each fiscal year. The incentive management fee is generally based on hotel operating profits, but the fee only applies to that portion of hotel operating profits above a negotiated return on our invested capital, which we refer to as the owner's priority. We refer to this excess of operating profits over the owner's priority as “available cash flow.”

The following table sets forth the base management fee and incentive management fee generally due and payable