Debt

3 Months Ended

Mar. 31, 2026

The following table sets forth information regarding the Company’s debt (dollars in thousands):


			Principal Balance as of
Loan	Interest Rate	Maturity Date	March 31, 2026		December 31, 2025









Unsecured term loan	SOFR + 1.35% (1)	January 2028 (2)	$	500,000	$	500,000
Unsecured term loan	SOFR + 1.35% (3)	January 2029 (2)	300,000		300,000
Unsecured term loan	SOFR + 1.35% (3)	January 2030	300,000		300,000
Senior unsecured credit facility	SOFR + 1.40%	January 2030 (2)	—		—
Total debt			1,100,000		1,100,000
Unamortized debt issuance costs (4)			(1,056)		(1,150)
Debt, net of unamortized debt issuance costs			$	1,098,944	$	1,098,850
Weighted-Average Interest Rate (5)	4.96%

_____________________________

(1)Interest rate as of March 31, 2026 was 4.85%, which includes the effect of interest rate swaps.

(2)Maturity date may be extended for two additional six-month periods upon the payment of applicable fees and the satisfaction of certain customary conditions.

(3)Interest rate as of March 31, 2026 was 4.98%.

(4)Excludes debt issuance costs related to our senior unsecured credit facility, which are included within Prepaid and Other Assets on the accompanying consolidated balance sheets.

(5)Includes the effect of interest rate swaps. See Note 6 for additional disclosures on interest rate swaps.

Senior Unsecured Credit Facility and Unsecured Term Loans

We are party to a Seventh Amended and Restated Credit Agreement (the “Credit Facility”) that provides for a $400.0 million revolving credit facility (the “Revolving Credit Facility”) and three term loan facilities in the aggregate amount of $1.1 billion. The Revolving Credit Facility matures on January 22, 2030. The term loan facilities consist of a $500.0 million term loan that matures on January 3, 2028 (the “Term 1 Loan”), a $300.0 million term loan that matures January 22, 2030 (the “Term 2 Loan”) and a $300.0 million term loan that matures on January 22, 2029 (the “Term 3 Loan”). The maturity date of the Revolving Credit Facility, Term 1 Loan and Term 3 Loan may be extended for two additional six-month periods upon the payment of applicable fees and satisfaction of certain standard conditions. We have the right to increase the aggregate capacity of the Amended Credit Facility to $1.8 billion upon the satisfaction of certain standard conditions. As of March 31, 2026, we had $400.0 million of borrowing capacity under the Revolving Credit Facility.

Interest is paid on the periodic advances on the revolving credit facility and amounts outstanding on the term loans at varying rates, based upon the Secured Overnight Financing Rate (“SOFR”), as defined in the Credit Facility, plus an applicable margin. The applicable margin is based upon our leverage ratio, as follows:


Leverage Ratio	Applicable Margin for Revolving Loans	Applicable Margin for Term Loans
Less than 30%	1.40%	1.35%
Greater than or equal to 30% but less than 35%	1.45%	1.40%
Greater than or equal to 35% but less than 40%	1.50%	1.45%
Greater than or equal to 40% but less than 45%	1.60%	1.55%
Greater than or equal to 45% but less than 50%	1.80%	1.75%
Greater than or equal to 50% but less than 55%	1.95%	1.85%
Greater than or equal to 55%	2.25%	2.20%

The Credit Facility contains various financial covenants. A summary of the most significant covenants is as follows:


		Actual at
	Covenant	March 31, 2026
Maximum leverage ratio (1)	60%	27.2%
Minimum fixed charge coverage ratio (2)	1.50x	3.68x
Secured recourse indebtedness	Less than 45% of Total Asset Value	N/A
Maximum unencumbered leverage ratio	60%	31.3%
Minimum unencumbered implied debt service coverage ratio	1.20x	2.39x

_____________________________

(1)Leverage ratio is net indebtedness, as defined in the Credit Facility, divided by total asset value, defined in the Credit Facility as the value of our owned hotels based on hotel net operating income divided by a defined capitalization rate.

(2)Fixed charge coverage ratio is Adjusted EBITDA, generally defined in the Credit Facility as EBITDA less FF&E reserves, for the most recent trailing 12 month period, to fixed charges, which is defined in the Credit Facility as interest expense, all regularly scheduled principal payments and payments on capitalized lease obligations, for the same 12 month period.

The components of the Company's interest expense consist of the following (in thousands):


	Three Months Ended March 31,
	2026		2025
Unsecured term loan interest	$	13,543	$	10,762
Mortgage debt interest	—		3,092
Credit facility fees	250		308
Amortization of debt issuance costs	425		535

Finance lease expense (1)	472		461
	$	14,690	$	15,158

_____________________________

(1)Represents the interest expense associated with the ground lease on the Courtyard New York Manhattan/Fifth Avenue.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

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+ Details

DiamondRock Hospitality Co 10-Q