Company: DRH-PA
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001298946-25-000015
Chunk: 147

Company: DiamondRock Hospitality Co
Filing Date: 2025-02-28
Form: 10-K
Item: Item 16
Chunk 147
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 2022 (in thousands):Year Ended December 31,202420232022Franchise fees$39,755 $35,769 $32,714 Amortization of deferred income related to key money (1)(31)(31)(31)Total franchise fees, net$39,724 $35,738 $32,683 _____________________________

(1)Relates to key money received for Courtyard New York Manhattan/Fifth Avenue. 

14.  Segment Reporting

We have one reportable segment, hotel ownership, as discussed in Note 2. The hotel ownership segment is mostly comprised of upper upscale and luxury chain scale hotels that offer hotel rooms, food and beverage and other ancillary guest 

F-32

services. The Company’s chief operating decision maker (“CODM”) is the Executive Committee which includes: 1) the Chief Executive Officer, 2) President and Chief Operating Officer, 3) Executive Vice President, Chief Financial Officer & Treasurer, and 4) Senior Vice President, General Counsel & Corporate Secretary.The CODM evaluates the hotel ownership segment primarily based on hotel adjusted earnings (loss) before interest income and expense, taxes and depreciation and amortization (“Hotel Adjusted EBITDA”). The CODM uses Hotel Adjusted EBITDA to evaluate the ongoing operational performance of our hotels and effectiveness of the third-party management companies operating our business on a property-level basis, in order to make informed decisions on how to allocate resources. Hotel Adjusted EBITDA is also used to monitor budget versus actual results. The monitoring of budgeted versus actual results are used in assessing performance of the segment and in establishing management’s compensation. Hotel Adjusted EBITDA, presented herein, is calculated as EBITDA from hotel operations, adjusted to exclude the following items that are not reflective of our ongoing operating performance or incurred in the normal course of business, and thus excluded from the CODM’s analysis in making day-to-day operating decisions:▪Non-cash lease expense and other amortization▪Cumulative effect of a change in accounting principle▪Gains or losses from early extinguishment of debt▪Hotel acquisition costs▪Severance costs▪Hotel manager transition items ▪Hotel pre-opening costs▪Impairment losses, gains or losses on asset sales and casualty gains or losses; and▪Other items that we believe are not representative of our current or future operating performance.The following table presents revenues for our hotel ownership segment reconciled to our consolidated amounts and