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 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 is 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 Hotel Adjusted EBITDA reconciled to consolidated net income (in thousands):


	Year Ended December 31,
	2025		2024		2023
Revenues:
Hotel ownership revenue	$	1,120,491	$	1,129,883	$	1,074,867
Total consolidated revenue	1,120,491		1,129,883		1,074,867

Significant expenses:
Rooms expense	182,694		186,131		176,765
Food and beverage expense	191,172		193,331		180,546
Other departmental and support expenses	270,698		268,563		261,536
Management fees	27,426		28,739		26,587
Franchise fees	38,360		39,724		35,738
Property taxes	58,332		54,195		48,586
Total significant expenses	768,682		770,683		729,758

Other segment expenses:
Other hotel expenses(1)	34,981		40,586		43,953

Hotel adjusted EBITDA	316,828		318,614		301,156

Non-cash lease expense and other amortization	5,140		5,970		6,156
Hotel pre-opening and manager transition items	501		1,006		1,246
Impairment losses	1,076		34,169		941
Depreciation and amortization	113,107		113,588		111,302
Corporate expenses	34,404		52,911		32,048
Interest expense	62,798		65,516		65,072
Interest income	(5,615)		(4,013)		(2,442)
Loss on early extinguishment of debt	5,850		—		—

Other (income) expense, net	(1,144)		(324)		(119)
Income tax expense	(1,231)		1,541		317
Consolidated net income	$	101,942	$	48,250	$	86,635

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(1)Other hotel expenses is principally comprised of cash payments for leases and property insurance.

The following table presents total assets for our hotel ownership segment, reconciled to total consolidated assets (in thousands):


	Year Ended December 31,
	2025		2024
Hotel ownership	$	2,908,811	$	3,063,835
All other	94,890		108,416
Total assets	$	3,003,701	$	3,172,251

Total capital expenditures related to our hotel ownership segment were $81.6 million, $81.6 million and $86.3 million for the years ended December 31, 2025, 2024 and 2023, respectively.

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

DiamondRock Hospitality Co Segments Disclosure

About Segments Disclosures

Other Available Disclosures