Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | May 03, 2024 | |
Entity Listings [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-32514 | |
Entity Registrant Name | DIAMONDROCK HOSPITALITY CO | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 20-1180098 | |
Entity Address, Address Line One | 2 Bethesda Metro Center, Suite 1400, | |
Entity Address, City or Town | Bethesda, | |
Entity Address, State or Province | MD | |
Entity Address, Postal Zip Code | 20814 | |
City Area Code | 240 | |
Local Phone Number | 744-1150 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 210,064,433 | |
Entity Central Index Key | 0001298946 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Common Stock | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | Common stock, $0.01 par value per share | |
Trading Symbol | DRH | |
Security Exchange Name | NYSE | |
8.250% Series A Cumulative Redeemable Preferred Stock, $0.01 par value per share | ||
Entity Listings [Line Items] | ||
Title of 12(b) Security | 8.250% Series A Cumulative Redeemable Preferred Stock, $0.01 par value per share | |
Trading Symbol | DRH Pr A | |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
ASSETS | ||
Property and equipment, net | $ 2,750,573 | $ 2,755,195 |
Right-of-use assets | 97,151 | 97,692 |
Restricted cash | 45,180 | 45,576 |
Due from hotel managers | 155,744 | 144,689 |
Prepaid and other assets | 70,085 | 73,940 |
Cash and cash equivalents | 120,064 | 121,595 |
Total assets | 3,238,797 | 3,238,687 |
Liabilities: | ||
Debt, net of unamortized debt issuance costs | 1,174,733 | 1,177,005 |
Lease liabilities | 113,201 | 112,866 |
Due to hotel managers | 119,178 | 116,522 |
Deferred rent | 70,638 | 69,209 |
Unfavorable contract liabilities, net | 59,452 | 59,866 |
Accounts payable and accrued expenses | 37,926 | 39,563 |
Distributions declared and unpaid | 6,186 | 6,324 |
Deferred income related to key money, net | 8,241 | 8,349 |
Total liabilities | 1,589,555 | 1,589,704 |
Equity: | ||
Preferred stock, $0.01 par value; 10,000,000 shares authorized: 8.250% Series A Cumulative Redeemable Preferred Stock (liquidation preference $25.00 per share), 4,760,000 shares issued and outstanding at March 31, 2024 and December 31, 2023 | 48 | 48 |
Common stock, $0.01 par value; 400,000,000 shares authorized; 210,064,433 and 209,627,197 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively | 2,100 | 2,096 |
Additional paid-in capital | 2,290,288 | 2,291,297 |
Accumulated other comprehensive loss | (781) | (2,036) |
Distributions in excess of earnings | (649,757) | (649,330) |
Total stockholders’ equity | 1,641,898 | 1,642,075 |
Noncontrolling interests | 7,344 | 6,908 |
Total equity | 1,649,242 | 1,648,983 |
Total liabilities and equity | $ 3,238,797 | $ 3,238,687 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Stockholders' Equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, dividend rate (as a percent) | 8.25% | |
Liquidation preference per share (in dollars per share) | $ 25 | $ 25 |
Preferred stock, shares issued (in shares) | 4,760,000 | 4,760,000 |
Preferred stock, shares outstanding (in shares) | 4,760,000 | 4,760,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 210,064,433 | 209,627,197 |
Common stock, shares outstanding (in shares) | 210,064,433 | 209,627,197 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues: | ||
Total revenues | $ 256,423 | $ 243,553 |
Operating Expenses: | ||
Depreciation and amortization | 28,313 | 27,472 |
Corporate expenses | 8,904 | 7,867 |
Total operating expenses, net | 233,978 | 217,842 |
Interest expense | 16,246 | 17,172 |
Interest (income) and other (income) expense, net | (1,069) | (423) |
Total other expenses, net | 15,177 | 16,749 |
Income before income taxes | 7,268 | 8,962 |
Income tax benefit | 1,090 | 226 |
Net income | 8,358 | 9,188 |
Less: Net income attributable to noncontrolling interests | (30) | (32) |
Net income attributable to the Company | 8,328 | 9,156 |
Distributions to preferred stockholders | (2,454) | (2,454) |
Net income attributable to common stockholders | $ 5,874 | $ 6,702 |
Earnings per share: | ||
Earnings per share available to common stockholders—basic (in dollars per share) | $ 0.03 | $ 0.03 |
Earnings per share available to common stockholders—diluted (in dollars per share) | $ 0.03 | $ 0.03 |
Comprehensive Income: | ||
Net income | $ 8,358 | $ 9,188 |
Other comprehensive income: | ||
Unrealized gain (loss) on interest rate derivative instruments | 960 | (84) |
Unrealized gain on Rabbi Trust assets | 299 | 237 |
Comprehensive income | 9,617 | 9,341 |
Comprehensive income attributable to noncontrolling interests | (34) | (32) |
Comprehensive income attributable to the Company | 9,583 | 9,309 |
Rooms | ||
Revenues: | ||
Total revenues | 163,507 | 160,673 |
Operating Expenses: | ||
Operating expenses | 43,968 | 40,203 |
Food and beverage | ||
Revenues: | ||
Total revenues | 68,381 | 59,777 |
Operating Expenses: | ||
Operating expenses | 47,239 | 43,150 |
Other | ||
Revenues: | ||
Total revenues | 24,535 | 23,103 |
Operating Expenses: | ||
Operating expenses | 64,600 | 61,968 |
Management fees | ||
Operating Expenses: | ||
Operating expenses | 5,310 | 4,988 |
Franchise fees | ||
Operating Expenses: | ||
Operating expenses | 9,026 | 8,077 |
Other property-level expenses | ||
Operating Expenses: | ||
Operating expenses | $ 26,618 | $ 24,117 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Total Stockholders' Equity | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Distributions in Excess of Earnings | Noncontrolling Interests |
Beginning balance (in shares) at Dec. 31, 2022 | 4,760,000 | 209,374,830 | ||||||
Beginning Balance at Dec. 31, 2022 | $ 1,596,178 | $ 1,589,881 | $ 48 | $ 2,094 | $ 2,288,433 | $ 0 | $ (700,694) | $ 6,297 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 9,188 | 9,156 | 9,156 | 32 | ||||
Unrealized gain (loss) on interest rate derivative instruments | (84) | (84) | (84) | |||||
Unrealized gain on Rabbi Trust assets | 237 | 237 | 237 | |||||
Distributions on common stock | (6,327) | (6,295) | (6,295) | (32) | ||||
Distributions on preferred stock | (2,454) | (2,454) | (2,454) | |||||
Share-based compensation (in shares) | 804,541 | |||||||
Share-based compensation | 1,967 | 1,827 | 1,827 | 140 | ||||
Shares redeemed to satisfy withholdings on vested share based compensation (in shares) | (333,779) | |||||||
Shares redeemed to satisfy withholdings on vested share based compensation | (3,023) | (3,023) | $ 6 | (3,029) | ||||
Common stock repurchased and retired (in shares) | (56,400) | |||||||
Common stock repurchased and retired | (409) | (409) | $ (2) | (407) | ||||
Ending balance (in shares) at Mar. 31, 2023 | 4,760,000 | 209,789,192 | ||||||
Ending Balance at Mar. 31, 2023 | 1,595,273 | 1,588,836 | $ 48 | $ 2,098 | 2,286,824 | 153 | (700,287) | 6,437 |
Beginning balance (in shares) at Dec. 31, 2022 | 4,760,000 | 209,374,830 | ||||||
Beginning Balance at Dec. 31, 2022 | 1,596,178 | 1,589,881 | $ 48 | $ 2,094 | 2,288,433 | 0 | (700,694) | 6,297 |
Ending balance (in shares) at Dec. 31, 2023 | 4,760,000 | 209,627,197 | ||||||
Ending Balance at Dec. 31, 2023 | 1,648,983 | 1,642,075 | $ 48 | $ 2,096 | 2,291,297 | (2,036) | (649,330) | 6,908 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 8,358 | 8,328 | 8,328 | 30 | ||||
Unrealized gain (loss) on interest rate derivative instruments | 960 | 957 | 957 | 3 | ||||
Unrealized gain on Rabbi Trust assets | 299 | 298 | 298 | 1 | ||||
Distributions on common stock | (6,332) | (6,301) | (6,301) | (31) | ||||
Distributions on preferred stock | (2,454) | (2,454) | (2,454) | |||||
Share-based compensation (in shares) | 753,860 | |||||||
Share-based compensation | 2,335 | 1,902 | $ 7 | 1,895 | 433 | |||
Shares redeemed to satisfy withholdings on vested share based compensation (in shares) | (316,624) | |||||||
Shares redeemed to satisfy withholdings on vested share based compensation | (2,907) | (2,907) | $ (3) | (2,904) | ||||
Ending balance (in shares) at Mar. 31, 2024 | 4,760,000 | 210,064,433 | ||||||
Ending Balance at Mar. 31, 2024 | $ 1,649,242 | $ 1,641,898 | $ 48 | $ 2,100 | $ 2,290,288 | $ (781) | $ (649,757) | $ 7,344 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Common stock, dividend declared (in dollars per share) | $ 0.03 | $ 0.03 |
Distributions per preferred share (in dollars per share) | $ 0.5156 | $ 0.5156 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Cash flows from operating activities: | |||
Net income | $ 8,358 | $ 9,188 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 28,313 | 27,472 | |
Corporate asset depreciation as corporate expenses | 33 | 50 | |
Non-cash lease expense and other amortization | 1,518 | 1,550 | |
Non-cash interest rate swap fair value adjustment | 0 | 2,014 | |
Amortization of debt issuance costs | 513 | 513 | |
Amortization of deferred income related to key money | (108) | (108) | |
Share-based compensation | 2,335 | 1,967 | |
Changes in assets and liabilities: | |||
Prepaid expenses and other assets | 4,527 | 5,123 | |
Due to/from hotel managers | (8,398) | 14,291 | |
Accounts payable and accrued expenses | (5,858) | (3,991) | |
Net cash provided by operating activities | 31,233 | 58,069 | |
Cash flows from investing activities: | |||
Capital expenditures | (18,867) | (21,642) | |
Net cash used in investing activities | (18,867) | (21,642) | |
Cash flows from financing activities: | |||
Scheduled mortgage debt principal payments | (2,461) | (2,404) | |
Distributions on common stock and units | (6,471) | (12,773) | |
Distributions on preferred stock | (2,454) | (2,454) | |
Repurchase of common stock | 0 | (409) | |
Shares redeemed to satisfy tax withholdings on vested share-based compensation | (2,907) | (3,023) | |
Net cash used in financing activities | (14,293) | (21,063) | |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (1,927) | 15,364 | |
Cash, cash equivalents, and restricted cash at beginning of period | 167,171 | 107,178 | $ 107,178 |
Cash, cash equivalents, and restricted cash at end of period | 165,244 | 122,542 | 167,171 |
Supplemental Disclosure of Cash Flow Information: | |||
Cash paid for interest | 16,235 | 14,368 | |
Cash paid for income taxes, net | 555 | 8 | |
Non-cash investing and financing activities: | |||
Unpaid dividends and distributions declared | 6,186 | 6,500 | |
Accrued capital expenditures | 9,259 | 7,711 | 4,700 |
Cash and cash equivalents | 120,064 | 121,595 | |
Restricted cash | 45,180 | 45,576 | |
Total cash, cash equivalents and restricted cash | $ 165,244 | $ 122,542 | $ 167,171 |
Organization
Organization | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization DiamondRock Hospitality Company (the “Company” or “we”) is a lodging-focused real estate company that owns a portfolio of premium hotels and resorts. As of March 31, 2024, we owned 36 hotels with 9,757 guest rooms. Our hotels are concentrated in major urban markets and in destination resort locations and more than 60% of our hotels are operated under a brand owned by one of the leading global lodging brand companies (Marriott International, Inc., Hilton Worldwide, or IHG Hotels & Resorts). We are an owner, as opposed to an operator, of the hotels in our portfolio. As an owner, we receive all of the operating profits or losses generated by our hotels after we pay fees to the hotel managers and hotel brands, which are based on the revenues and profitability of the hotels. We are a real estate investment trust (“REIT”) for U.S. federal income tax purposes. We conduct our business through a traditional umbrella partnership real estate investment trust, or UPREIT, in which our hotel properties are owned by our operating partnership, DiamondRock Hospitality Limited Partnership, or subsidiaries of our operating partnership. The Company is the sole general partner of our operating partnership and owned 99.6% of the limited partnership units (“common OP units”) of our operating partnership as of March 31, 2024. The remaining 0.4% of the common OP units are held by third parties and executive officers of the Company. See Note 7 for additional disclosures related to common OP units. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited interim consolidated financial statements and related notes have been prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”). We have condensed or omitted certain disclosures normally included in annual financial statements presented in accordance with U.S. GAAP; however, we believe the disclosures made are adequate to prevent the information presented from being misleading. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. Interim results are not necessarily indicative of full-year performance, as a result of the impact of seasonal and other short-term variations and the acquisitions and or dispositions of hotel properties. Use of Estimates The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Recently Issued Accounting Pronouncements In March 2024, the Securities and Exchange Commission (the "SEC") issued final rules on the enhancement and standardization of climate-related disclosures. The rules require disclosure of, among other things: material climate-related risks; activities to mitigate or adapt to such risks; governance and management of such risks; and material greenhouse gas emissions from operations owned or controlled (Scope 1) and/or indirect emissions from purchased energy consumed in operations (Scope 2). Additionally, the rules require disclosure in the notes to the financial statements of the effects of severe weather events and other natural conditions, subject to certain materiality thresholds. The rules will become effective for the Company on a phased-in timeline starting in the year ended December 31, 2025. While the SEC has voluntarily stayed the rules, the Company is currently evaluating the effect the rules will have on its financial statement disclosures. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consists of the following (in thousands): March 31, 2024 December 31, 2023 Land $ 590,824 $ 590,824 Land improvements 7,994 7,994 Buildings and site improvements 2,889,017 2,878,508 Furniture, fixtures and equipment 571,335 561,484 Construction in progress 24,274 21,175 4,083,444 4,059,985 Less: accumulated depreciation (1,332,871) (1,304,790) $ 2,750,573 $ 2,755,195 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table sets forth information regarding the Company’s debt (dollars in thousands): Principal Balance as of Loan Interest Rate as of March 31, 2024 Maturity Date March 31, 2024 December 31, 2023 Courtyard New York Manhattan/Midtown East mortgage loan 4.40% August 2024 $ 73,879 $ 74,346 Worthington Renaissance Fort Worth Hotel mortgage loan 3.66% May 2025 73,240 73,727 Hotel Clio mortgage loan 4.33% July 2025 55,735 56,091 Westin Boston Seaport District mortgage loan 4.36% November 2025 172,874 174,025 Unsecured term loan SOFR + 1.35% (1) January 2028 500,000 500,000 Unsecured term loan SOFR + 1.35% (1) January 2025 (2) 300,000 300,000 Senior unsecured credit facility SOFR + 1.40% September 2026 (2) — — Total debt 1,175,728 1,178,189 Unamortized debt issuance costs (3) (995) (1,184) Debt, net of unamortized debt issuance costs $ 1,174,733 $ 1,177,005 Weighted-Average Interest Rate (4) 5.22% _______________________ (1) Interest rate as of March 31, 2024 was 6.78%, which excludes the effect of interest rate swaps. (2) Maturity date may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions. (3) Excludes debt issuance costs related to our senior unsecured credit facility, which are included within Other Assets on the accompanying consolidated balance sheet. (4) Weighted-average interest rate as of March 31, 2024 includes the effect of interest rate swaps. See Note 5 for additional disclosures on interest rate swaps. Mortgage Debt We have incurred limited recourse, property specific mortgage debt secured by certain of our hotels. In the event of default, the lender may only foreclose on the secured assets; however, in the event of fraud, misapplication of funds or other customary recourse provisions, the lender may seek payment from us. As of March 31, 2024, four of our 36 hotels were secured by mortgage debt. We have one mortgage loan that matures in the current year, which has a principal balance of $73.9 million as of March 31, 2024. We intend to repay this mortgage loan using cash on hand. Our mortgage debt contains certain property specific covenants and restrictions, including minimum debt service coverage ratios or debt yields that trigger “cash trap” provisions, as well as restrictions on incurring additional debt without lender consent. Such cash trap provisions are triggered when the hotel’s operating results fall below a certain debt service coverage ratio or debt yield. When these provisions are triggered, all of the excess cash flow generated by the hotel is deposited directly into cash management accounts for the benefit of our lenders until a specified debt service coverage ratio or debt yield is reached and maintained for a certain period of time. Such provisions do not provide the lender the right to accelerate repayment of the underlying debt. We had no cash trapped as of March 31, 2024 and December 31, 2023. Senior Unsecured Credit Facility and Unsecured Term Loans We are party to a Sixth Amended and Restated Credit Agreement (the “Credit Agreement”) that provides us with a $400 million senior unsecured revolving credit facility and two term loan facilities in the aggregate amount of $800 million. The revolving credit facility matures on September 27, 2026, which we may extend for an additional year upon the payment of applicable fees and satisfaction of certain standard conditions. The term loan facilities consist of a $500 million term loan that matures on January 3, 2028 and a $300 million term loan that matures January 3, 2025. The maturity date of the $300 million term loan may be extended for an additional year upon the payment of applicable fees and satisfaction of certain standard conditions. We have the right to increase the aggregate amount of the facilities to $1.4 billion upon the satisfaction of certain standard conditions. 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 adjusted Secured Overnight Financing Rate (“SOFR”), as defined in the Credit Agreement, 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 Agreement contains various financial covenants. A summary of the most significant covenants is as follows: Actual at Covenant March 31, 2024 Maximum leverage ratio (1) 60% 29.6% Minimum fixed charge coverage ratio (2) 1.50x 2.87x Secured recourse indebtedness Less than 45% of Total Asset Value 11.6% Maximum unencumbered leverage ratio 60% 30.8% Minimum unencumbered implied debt service coverage ratio 1.20x 2.46x _____________________________ (1) Leverage ratio is net indebtedness, as defined in the Credit Agreement, divided by total asset value, defined in the Credit Agreements 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 Agreement as EBITDA less FF&E reserves, for the most recently ending 12 months, to fixed charges, which is defined in the Credit Agreement as interest expense, all regularly scheduled principal payments and payments on capitalized lease obligations, for the same most recently ending 12-month period. The components of the Company's interest expense consisted of the following (in thousands): Three Months Ended March 31, 2024 2023 Mortgage debt interest $ 4,034 $ 4,091 Unsecured term loan interest 11,387 10,241 Credit facility interest and unused fees 312 313 Amortization of debt issuance costs and debt premium 513 513 Interest rate swap mark-to-market — 2,014 $ 16,246 $ 17,172 |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company had the following derivatives that were designated as cash flow hedges of interest rate risk (in thousands): Fair Value of Assets Hedged Debt Type Fixed Rate Index Effective Date Maturity Date Notional Amount March 31, December 31, 2023 Senior unsecured term loans Swap (1) 1.63 % SOFR November 28, 2022 July 25, 2024 $ 87,500 1,004 1,660 Senior unsecured term loans Swap (1) 1.63 % SOFR November 28, 2022 July 25, 2024 $ 87,500 1,002 1,658 Senior unsecured term loans Swap 3.36 % SOFR March 1, 2023 January 1, 2028 $ 75,000 1,813 554 Senior unsecured term loans Swap 3.50 % SOFR March 1, 2023 January 1, 2027 $ 75,000 1,462 449 $ 5,281 $ 4,321 ______________________ (1) Swap was designated as cash flow hedge as of April 1, 2023. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. During 2024, such derivatives were used to hedge the variable cash flows associated with variable-rate debt. The table below details the location in the consolidated financial statements of the gains and losses recognized related to derivative financial instruments (in thousands): Three Months Ended March 31, Effect of derivative instruments Location in Statements of Operations and Comprehensive Income 2024 2023 Loss (gain) recognized in other comprehensive income Unrealized loss (gain) on interest rate derivative instruments $ (960) $ 84 Interest (income) for derivatives that were designated as cash flow hedges Interest expense $ (2,357) $ (147) Interest (income) expense for derivatives that were not designated as cash flow hedges Interest expense $ — $ 469 During the next twelve months, the Company estimates that $2.7 million will be reclassified from other comprehensive income as a decrease to interest expense. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The fair value of certain financial assets and liabilities and other financial instruments are as follows (in thousands): March 31, 2024 December 31, 2023 Carrying Amount (1) Fair Value Carrying Amount (1) Fair Value Debt $ 1,174,733 $ 1,167,022 $ 1,177,005 $ 1,167,638 _______________ (1) The carrying amount of debt is net of unamortized debt issuance costs. The fair value of our debt is a Level 2 measurement under the fair value hierarchy. We estimate the fair value of our debt by discounting the future cash flows of each instrument at estimated market rates. The fair value of our interest rate swaps are a Level 2 measurement under the fair value hierarchy. We estimate the fair value of the interest rate swaps based on the interest rate yield curve and implied market volatility as inputs and adjusted for the counterparty's credit risk. We concluded the inputs for the credit risk valuation adjustment are Level 3 inputs; however these inputs are not significant to the fair value measurement in its entirety. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Equity | Equity Common Shares We are authorized by our charter to issue up to 400 million shares of common stock, $0.01 par value per share. Each outstanding share of common stock entitles the holder to one vote on all matters submitted to a vote of stockholders. Holders of our common stock are entitled to receive dividends out of assets legally available for the payment of dividends when authorized by our board of directors. We maintain an “at-the-market” equity offering program (the “ATM Program”), pursuant to which we may issue and sell shares of our common stock from time to time, having an aggregate offering price of up to $200.0 million. We have not sold any shares under the ATM Program. Our board of directors has authorized a share repurchase program pursuant to which we are authorized to repurchase up to $200.0 million of our common stock through February 28, 2025. The timing and actual number of shares repurchased will depend on a variety of factors, including price and general business and market conditions. The share repurchase program does not obligate us to acquire any particular amount of shares, and may be suspended or discontinued at any time at our discretion. During the year ended December 31, 2023, we repurchased 318,454 shares of common stock at an average price of $7.60 per share for a total purchase price of $2.4 million. We did not repurchase any shares of common stock during the three months ended March 31, 2024. As of May 3, 2024, we have $185.3 million of authorized capacity remaining under the share repurchase program. Preferred Shares We are authorized by our charter to issue up to 10 million shares of preferred stock, $0.01 par value per share. Our board of directors is required to set for each class or series of preferred stock the terms, preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends or other distributions, qualifications, and terms or conditions of redemption. As of March 31, 2024 and December 31, 2023, there were 4,760,000 shares of 8.250% Series A Cumulative Redeemable Preferred Stock (“Series A Preferred Stock”) issued and outstanding with a liquidation preference each of $25.00 per share. On or after August 31, 2025, the Series A Preferred Stock will be redeemable at the Company's option, in whole or in part, at any time or from time to time, for cash at a redemption price of $25.00 per share, plus accrued and unpaid dividends up to, but not including, the redemption date. Operating Partnership Units In connection with our acquisition of Cavallo Point in December 2018, we issued 796,684 common OP units to third parties, otherwise unaffiliated with the Company, then valued at $11.76 per unit. Each common OP unit is redeemable at the option of the holder. Holders of common OP units have certain redemption rights, which enable them to cause our operating partnership to redeem their units in exchange for cash per unit equal to the market price of our common stock, at the time of redemption, or, at our option, for shares of our common stock on a one-for-one basis, subject to adjustment upon the occurrence of stock splits, mergers, consolidations or similar pro-rata share transactions. Long-Term Incentive Partnership units (“LTIP units”), which are also referred to as profits interest units, may be issued to eligible participants under the 2016 Plan (as defined in Note 8 below) for the performance of services to or for the benefit of our operating partnership. LTIP units are a class of partnership unit in our operating partnership and will receive, whether vested or not, the same per-unit distributions as the outstanding common OP units, which equal per-share dividends on shares of our common stock. Initially, LTIP units have a capital account balance of zero, do not receive an allocation of operating income (loss), and do not have full parity with common OP units with respect to liquidating distributions. If such parity is reached, vested LTIP units are converted into an equal number of common OP units, and thereafter will possess all of the rights and interests of common OP units, including the right to exchange the common OP units for cash per unit equal to the market price of our common stock, at the time of redemption, or, at our option, for shares of our common stock on a one-for-one basis, subject to adjustment upon the occurrence of stock splits, mergers, consolidations or similar pro-rata share transactions. See Note 8 for additional disclosures related to LTIP units. There were 808,923 and 723,166 common OP units held by unaffiliated third parties and executive officers of the Company as of March 31, 2024 and December 31, 2023, respectively. There were 228,380 and 314,137 unvested LTIP units outstanding as of March 31, 2024 and December 31, 2023, respectively. Dividends and Distributions For each of the three months ended March 31, 2024 and 2023, we paid an aggregate cash dividend of $0.03 per share or unit to holders of our common stock, common OP units, and LTIP units. For each of the three months ended March 31, 2024 and 2023, we paid an aggregate cash dividend of $0.5156 per share to holders of our Series A Preferred Stock. |
Equity Incentive Plans
Equity Incentive Plans | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Equity Incentive Plans | Equity Incentive Plans We are authorized to issue up to 6,082,664 shares of our common stock under our 2016 Equity Incentive Plan (as amended, the “2016 Plan”), which we have fully committed as of March 31, 2024 and December 31, 2023. On February 27, 2024, our board of directors adopted the 2024 Equity Incentive Plan (the “2024 Plan”). The 2024 Plan was approved by our stockholders on May 1, 2024. The 2024 Plan replaces the 2016 Plan and share grants will no longer be made under the 2016 Plan; however, shares underlying awards already granted under the 2016 Plan will still be issued under the 2016 Plan if the awards vest. Under the 2024 Plan, we are authorized to issue up to 7,900,000 shares of our common stock. Except for the shares and deferred stock units that are expected to be granted to our officers, employ ees and non-employee directors shortly after our annual meeting of stockholders, which represent the Company's annual equity grants to officers, employees and non-employee directors, no other shares have been issued or committed to be issued under the 20 24 Plan. Restricted Stock Awards Restricted stock awards issued to our officers and employees generally vest over a three Number of Weighted- Unvested balance at January 1, 2024 1,200,693 $ 9.33 Vested (484,777) 9.37 Unvested balance at March 31, 2024 715,916 $ 9.30 The total unvested restricted stock awards as of March 31, 2024 are expected to vest as follows: 39,806 shares during 2024, 317,771 shares during 2025, 344,918 shares during 2026, 6,712 shares during 2027, and 6,709 shares during 2028. As of March 31, 2024, the unrecognized compensation cost related to restricted stock awards was $4.3 million and the weighted-average period over which the unrecognized compensation expense will be recorded is approximately 22 months. We recorded $1.0 million and $1.1 million of compensation expense related to restricted stock awards for each of the three months ended March 31, 2024 and 2023, respectively. We did not grant any restricted stock awards during the three months ended March 31, 2024. Performance Stock Units Performance stock units (“PSUs”) are restricted stock units that vest three issued to each executive officer is based on the Company's achievement of certain performance targets. Under this framework, 50% of the PSUs are based on relative total stockholder return and 50% on hotel market share improvement. The achievement of certain levels of total stockholder return relative to the total stockholder return of a peer group of publicly-traded lodging REITs is measured over a three-year performance period. There is no payout of shares of our common stock if our total stockholder return falls below the 30th percentile of the total stockholder returns of the peer group. The maximum number of shares of common stock issued to an executive officer is equal to 150% of the PSU Target Award and is earned if our total stockholder return is equal to or greater than the 75th percentile of the total stockholder returns of the peer group. The number of PSUs earned is limited to 100% of the PSU Target Award if the Company's total stockholder return is negative for the performance period. The improvement in market share for each of our hotels is generally measured over a three-year performance period based on a report prepared for each hotel by STR Global, a well-recognized benchmarking service for the hospitality industry. There is no payout of shares of our common stock if the percentage of our hotels with market share improvements is less than 30%. The maximum number of shares of common stock issued to an executive officer is equal to 150% of the PSU Target Award and is earned if the percentage of our hotels with market share improvements is greater than or equal to 75%. We measure compensation expense for the PSUs based upon the fair market value of the award at the grant date. Compensation expense is recognized on a straight-line basis over the vesting period and is included in corporate expenses in the accompanying consolidated statements of operations and comprehensive income. The grant date fair value of the portion of the PSUs based on our relative total stockholder return is determined using a Monte Carlo simulation performed by a third-party valuation firm. The grant date fair value of the portion of the PSUs based on hotel market share improvement is the closing price of our common stock on the grant date. The determination of the grant-date fair values of outstanding awards based on our relative stockholder return included the following assumptions: Award Grant Date Volatility Risk-Free Rate Total Stockholder Return PSUs Hotel Market Share PSUs March 2, 2021 68.8% 0.26% $9.28 $9.40 February 22, 2022 71.4% 1.74% $9.84 $9.56 August 9, 2022 73.3% 3.20% $9.65 $9.32 February 23, 2023 74.5% 4.40% $9.22 $8.94 A summary of our PSUs from January 1, 2024 to March 31, 2024 is as follows: Number of Weighted- Unvested balance at January 1, 2024 1,032,296 $ 9.34 Additional units from dividends 3,277 9.45 Vested (1) (301,861) 9.32 Unvested balance at March 31, 2024 733,712 $ 9.35 ______________________ (1) The number of shares of common stock earned for the PSUs vested in 2024 was equal to 95.6% of the PSU Target Award. The total unvested PSUs as of March 31, 2024 are expected to vest as follows: 329,163 units during 2025, 368,736 units during 2026, and 35,813 units during 2027. The number of shares earned upon vesting is subject to the attainment of the performance goals described above. As of March 31, 2024, the unrecognized compensation cost related to the PSUs was $3.1 million and is expected to be recognized on a straight-line basis over a weighted average period of 23 months. We recorded $0.9 million and $0.7 million of compensation expense related to the PSUs for the three months ended March 31, 2024 and 2023, respectively. We did not grant any PSUs during the three months ended March 31, 2024. LTIP Units LTIP units are designed to offer executives a long-term incentive comparable to restricted stock, while potentially allowing them a more favorable income tax treatment. 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 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, 2024 to March 31, 2024 is as follows: Number of Units Weighted- Unvested balance at January 1, 2024 314,137 $ 9.01 Vested (1) (85,757) 8.94 Unvested balance at March 31, 2024 228,380 $ 9.03 ______________________ (1) As of March 31, 2024, 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 March 31, 2024 are expected to vest as follows: 38,452 during 2024, 87,856 during both 2025 and 2026, and 14,216 during 2027. As of March 31, 2024, the unrecognized compensation cost related to LTIP unit awards was $1.7 million and the weighted-average period over which the unrecognized compensation expense will be recorded is approximately 27 months. We recorded $0.4 million and $0.1 million of compensation expense related to LTIP unit awards for the three months ended March 31, 2024 and 2023, respectively. We did not grant any LTIP units during the three months ended March 31, 2024. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following is a reconciliation of the calculation of basic and diluted earnings per share ("EPS") (in thousands, except share and per share data): Three Months Ended March 31, 2024 2023 Numerator: Net income attributable to common stockholders $ 5,874 $ 6,702 Denominator: Weighted-average number of common shares outstanding—basic 211,669,343 211,411,519 Effect of dilutive securities: Unvested restricted common stock 218,366 197,410 Shares related to unvested PSUs 454,758 205,793 Weighted-average number of common shares outstanding—diluted 212,342,467 211,814,722 Earnings per share: Earnings per share available to common stockholders—basic $ 0.03 $ 0.03 Earnings per share available to common stockholders—diluted $ 0.03 $ 0.03 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation We are subject to various claims, lawsuits and legal proceedings, including routine litigation arising in the ordinary course of business regarding the operation of our hotels and other Company matters. While it is not possible to ascertain the ultimate outcome of such matters, management believes that the aggregate amount of such liabilities, if any, in excess of amounts covered by insurance will not have a material adverse impact on our financial condition or results of operations and comprehensive income. The outcome of claims, lawsuits and legal proceedings brought against the Company, however, is subject to significant uncertainties. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On April 15, 2024, the Company announced leadership changes and a simplified organizational structure, including (i) the appointment of Jeffrey J. Donnelly as Chief Executive Officer of the Company, (ii) the appointment of Briony R. Quinn as Executive Vice President, Chief Financial Officer and Treasurer of the Company and (iii) the appointment of Justin L. Leonard as President of the Company, all effective as of April 15, 2024. In connection with these appointments, the Company announced (i) the departure of Mark W. Brugger as President and Chief Executive Officer of the Company and (ii) the departure of Troy G. Furbay as Executive Vice President and Chief Investment Officer of the Company, each effective as of April 15, 2024. We expect to recognize approximately $19 million |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 8,328 | $ 9,156 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
Use of Estimates | Use of Estimates The preparation of the financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In March 2024, the Securities and Exchange Commission (the "SEC") issued final rules on the enhancement and standardization of climate-related disclosures. The rules require disclosure of, among other things: material climate-related risks; activities to mitigate or adapt to such risks; governance and management of such risks; and material greenhouse gas emissions from operations owned or controlled (Scope 1) and/or indirect emissions from purchased energy consumed in operations (Scope 2). Additionally, the rules require disclosure in the notes to the financial statements of the effects of severe weather events and other natural conditions, subject to certain materiality thresholds. The rules will become effective for the Company on a phased-in timeline starting in the year ended December 31, 2025. While the SEC has voluntarily stayed the rules, the Company is currently evaluating the effect the rules will have on its financial statement disclosures. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consists of the following (in thousands): March 31, 2024 December 31, 2023 Land $ 590,824 $ 590,824 Land improvements 7,994 7,994 Buildings and site improvements 2,889,017 2,878,508 Furniture, fixtures and equipment 571,335 561,484 Construction in progress 24,274 21,175 4,083,444 4,059,985 Less: accumulated depreciation (1,332,871) (1,304,790) $ 2,750,573 $ 2,755,195 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term Debt | The following table sets forth information regarding the Company’s debt (dollars in thousands): Principal Balance as of Loan Interest Rate as of March 31, 2024 Maturity Date March 31, 2024 December 31, 2023 Courtyard New York Manhattan/Midtown East mortgage loan 4.40% August 2024 $ 73,879 $ 74,346 Worthington Renaissance Fort Worth Hotel mortgage loan 3.66% May 2025 73,240 73,727 Hotel Clio mortgage loan 4.33% July 2025 55,735 56,091 Westin Boston Seaport District mortgage loan 4.36% November 2025 172,874 174,025 Unsecured term loan SOFR + 1.35% (1) January 2028 500,000 500,000 Unsecured term loan SOFR + 1.35% (1) January 2025 (2) 300,000 300,000 Senior unsecured credit facility SOFR + 1.40% September 2026 (2) — — Total debt 1,175,728 1,178,189 Unamortized debt issuance costs (3) (995) (1,184) Debt, net of unamortized debt issuance costs $ 1,174,733 $ 1,177,005 Weighted-Average Interest Rate (4) 5.22% _______________________ (1) Interest rate as of March 31, 2024 was 6.78%, which excludes the effect of interest rate swaps. (2) Maturity date may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions. (3) Excludes debt issuance costs related to our senior unsecured credit facility, which are included within Other Assets on the accompanying consolidated balance sheet. (4) Weighted-average interest rate as of March 31, 2024 includes the effect of interest rate swaps. See Note 5 for additional disclosures on interest rate swaps. |
Schedule of Line of Credit Facility Leverage and 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% |
Schedule of the Most Significant Covenants | The Credit Agreement contains various financial covenants. A summary of the most significant covenants is as follows: Actual at Covenant March 31, 2024 Maximum leverage ratio (1) 60% 29.6% Minimum fixed charge coverage ratio (2) 1.50x 2.87x Secured recourse indebtedness Less than 45% of Total Asset Value 11.6% Maximum unencumbered leverage ratio 60% 30.8% Minimum unencumbered implied debt service coverage ratio 1.20x 2.46x _____________________________ (1) Leverage ratio is net indebtedness, as defined in the Credit Agreement, divided by total asset value, defined in the Credit Agreements as the value of our owned hotels based on hotel net operating income divided by a defined capitalization rate. (2) |
Schedule of Components of Interest Expense | The components of the Company's interest expense consisted of the following (in thousands): Three Months Ended March 31, 2024 2023 Mortgage debt interest $ 4,034 $ 4,091 Unsecured term loan interest 11,387 10,241 Credit facility interest and unused fees 312 313 Amortization of debt issuance costs and debt premium 513 513 Interest rate swap mark-to-market — 2,014 $ 16,246 $ 17,172 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | The Company had the following derivatives that were designated as cash flow hedges of interest rate risk (in thousands): Fair Value of Assets Hedged Debt Type Fixed Rate Index Effective Date Maturity Date Notional Amount March 31, December 31, 2023 Senior unsecured term loans Swap (1) 1.63 % SOFR November 28, 2022 July 25, 2024 $ 87,500 1,004 1,660 Senior unsecured term loans Swap (1) 1.63 % SOFR November 28, 2022 July 25, 2024 $ 87,500 1,002 1,658 Senior unsecured term loans Swap 3.36 % SOFR March 1, 2023 January 1, 2028 $ 75,000 1,813 554 Senior unsecured term loans Swap 3.50 % SOFR March 1, 2023 January 1, 2027 $ 75,000 1,462 449 $ 5,281 $ 4,321 ______________________ (1) Swap was designated as cash flow hedge as of April 1, 2023. |
Schedule of Gains and Losses Recognized on Derivative Financial Statements | The table below details the location in the consolidated financial statements of the gains and losses recognized related to derivative financial instruments (in thousands): Three Months Ended March 31, Effect of derivative instruments Location in Statements of Operations and Comprehensive Income 2024 2023 Loss (gain) recognized in other comprehensive income Unrealized loss (gain) on interest rate derivative instruments $ (960) $ 84 Interest (income) for derivatives that were designated as cash flow hedges Interest expense $ (2,357) $ (147) Interest (income) expense for derivatives that were not designated as cash flow hedges Interest expense $ — $ 469 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value of Certain Financial Assets and Liabilities and Other Financial Instruments | The fair value of certain financial assets and liabilities and other financial instruments are as follows (in thousands): March 31, 2024 December 31, 2023 Carrying Amount (1) Fair Value Carrying Amount (1) Fair Value Debt $ 1,174,733 $ 1,167,022 $ 1,177,005 $ 1,167,638 _______________ (1) The carrying amount of debt is net of unamortized debt issuance costs. |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Awards | A summary of our restricted stock awards from January 1, 2024 to March 31, 2024 is as follows: Number of Weighted- Unvested balance at January 1, 2024 1,200,693 $ 9.33 Vested (484,777) 9.37 Unvested balance at March 31, 2024 715,916 $ 9.30 |
Schedule of Fair Value Assumptions | The determination of the grant-date fair values of outstanding awards based on our relative stockholder return included the following assumptions: Award Grant Date Volatility Risk-Free Rate Total Stockholder Return PSUs Hotel Market Share PSUs March 2, 2021 68.8% 0.26% $9.28 $9.40 February 22, 2022 71.4% 1.74% $9.84 $9.56 August 9, 2022 73.3% 3.20% $9.65 $9.32 February 23, 2023 74.5% 4.40% $9.22 $8.94 |
Schedule of Nonvested Performance-based Units Activity | A summary of our PSUs from January 1, 2024 to March 31, 2024 is as follows: Number of Weighted- Unvested balance at January 1, 2024 1,032,296 $ 9.34 Additional units from dividends 3,277 9.45 Vested (1) (301,861) 9.32 Unvested balance at March 31, 2024 733,712 $ 9.35 ______________________ (1) The number of shares of common stock earned for the PSUs vested in 2024 was equal to 95.6% of the PSU Target Award. |
Schedule of LTIP Units | A summary of our LTIP units from January 1, 2024 to March 31, 2024 is as follows: Number of Units Weighted- Unvested balance at January 1, 2024 314,137 $ 9.01 Vested (1) (85,757) 8.94 Unvested balance at March 31, 2024 228,380 $ 9.03 ______________________ (1) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following is a reconciliation of the calculation of basic and diluted earnings per share ("EPS") (in thousands, except share and per share data): Three Months Ended March 31, 2024 2023 Numerator: Net income attributable to common stockholders $ 5,874 $ 6,702 Denominator: Weighted-average number of common shares outstanding—basic 211,669,343 211,411,519 Effect of dilutive securities: Unvested restricted common stock 218,366 197,410 Shares related to unvested PSUs 454,758 205,793 Weighted-average number of common shares outstanding—diluted 212,342,467 211,814,722 Earnings per share: Earnings per share available to common stockholders—basic $ 0.03 $ 0.03 Earnings per share available to common stockholders—diluted $ 0.03 $ 0.03 |
Organization (Details)
Organization (Details) | 3 Months Ended |
Mar. 31, 2024 room hotel | |
Real Estate Properties [Line Items] | |
Number of hotels | hotel | 36 |
Number of rooms in hotels, resorts and senior loan secured facility (in rooms) | room | 9,757 |
Number Of Hotels Operated, Percentage | 60% |
DiamondRock Hospitality Limited Partnership | |
Real Estate Properties [Line Items] | |
General partner, ownership interest (as a percent) | 99.60% |
Limited partners, ownership interest (as a percent) | 0.40% |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Property and Equipment | ||
Property and equipment, gross | $ 4,083,444 | $ 4,059,985 |
Less: accumulated depreciation | (1,332,871) | (1,304,790) |
Property and equipment, net | 2,750,573 | 2,755,195 |
Land | ||
Property and Equipment | ||
Property and equipment, gross | 590,824 | 590,824 |
Land improvements | ||
Property and Equipment | ||
Property and equipment, gross | 7,994 | 7,994 |
Buildings and site improvements | ||
Property and Equipment | ||
Property and equipment, gross | 2,889,017 | 2,878,508 |
Furniture, fixtures and equipment | ||
Property and Equipment | ||
Property and equipment, gross | 571,335 | 561,484 |
Construction in progress | ||
Property and Equipment | ||
Property and equipment, gross | $ 24,274 | $ 21,175 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |||
Accrued capital expenditures | $ 9,259 | $ 7,711 | $ 4,700 |
Debt - Schedule of Long Term De
Debt - Schedule of Long Term Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||
Total debt | $ 1,175,728 | $ 1,178,189 |
Debt, net of unamortized debt issuance costs | $ 1,174,733 | 1,177,005 |
Weighted-average interest rate (as a percent) | 5.22% | |
Unsecured Term Loan | ||
Debt Instrument [Line Items] | ||
Unamortized debt issuance costs | $ (995) | (1,184) |
Unsecured Term Loan Due January 2028 | Unsecured Term Loan | ||
Debt Instrument [Line Items] | ||
Principal balance | $ 500,000 | 500,000 |
Unsecured Term Loan Due January 2028 | Unsecured Term Loan | SOFR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 1.35% | |
Unsecured Term Loan Due January 2028 | Unsecured Term Loan | Interest Rate Swap | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 6.78% | |
Unsecured Term Loan due January 2025 | Unsecured Term Loan | ||
Debt Instrument [Line Items] | ||
Principal balance | $ 300,000 | 300,000 |
Unsecured Term Loan due January 2025 | Unsecured Term Loan | SOFR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 1.35% | |
Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Senior unsecured credit facility | $ 0 | 0 |
Revolving Credit Facility | Line of Credit | SOFR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate (as a percent) | 1.40% | |
Courtyard New York Manhattan/Midtown East mortgage loan | Mortgages | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage (as a percent) | 4.40% | |
Principal balance | $ 73,879 | 74,346 |
Worthington Renaissance Fort Worth Hotel mortgage loan | Mortgages | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage (as a percent) | 3.66% | |
Principal balance | $ 73,240 | 73,727 |
Hotel Clio mortgage loan | Mortgages | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage (as a percent) | 4.33% | |
Principal balance | $ 55,735 | 56,091 |
Westin Boston Seaport District mortgage loan | Mortgages | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage (as a percent) | 4.36% | |
Principal balance | $ 172,874 | $ 174,025 |
Debt - Mortgage Debt (Details)
Debt - Mortgage Debt (Details) $ in Thousands | Mar. 31, 2024 USD ($) hotel | Dec. 31, 2023 USD ($) |
Debt Instrument [Line Items] | ||
Number of hotels | 36 | |
Mortgages | ||
Debt Instrument [Line Items] | ||
Number of hotels | 4 | |
Mortgages | Courtyard New York Manhattan/Midtown East mortgage loan | ||
Debt Instrument [Line Items] | ||
Principal balance | $ | $ 73,879 | $ 74,346 |
Debt - Senior Unsecured Credit
Debt - Senior Unsecured Credit Facility and Unsecured Term Loans (Details) | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Sep. 27, 2022 USD ($) facility |
Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Right to increase facility, amount | $ 1,400,000,000 | ||
Revolving Credit Facility | Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | 400,000,000 | ||
Term Loan Facilities | Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 800,000,000 | ||
Number of facilities | facility | 2 | ||
Unsecured Term Loan Due January 2028 | Unsecured Term Loan | |||
Line of Credit Facility [Line Items] | |||
Principal balance | $ 500,000,000 | $ 500,000,000 | |
Unsecured Term Loan due January 2025 | Unsecured Term Loan | |||
Line of Credit Facility [Line Items] | |||
Principal balance | $ 300,000,000 | $ 300,000,000 |
Debt - Schedule of Applicable M
Debt - Schedule of Applicable Margin (Details) - SOFR | 3 Months Ended |
Mar. 31, 2024 | |
Less than 30% | Line of Credit | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 1.40% |
Less than 30% | Unsecured Term Loan | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 1.35% |
Greater than or equal to 30% but less than 35% | Line of Credit | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 1.45% |
Greater than or equal to 30% but less than 35% | Unsecured Term Loan | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 1.40% |
Greater than or equal to 35% but less than 40% | Line of Credit | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 1.50% |
Greater than or equal to 35% but less than 40% | Unsecured Term Loan | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 1.45% |
Greater than or equal to 40% but less than 45% | Line of Credit | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 1.60% |
Greater than or equal to 40% but less than 45% | Unsecured Term Loan | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 1.55% |
Greater than or equal to 45% but less than 50% | Line of Credit | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 1.80% |
Greater than or equal to 45% but less than 50% | Unsecured Term Loan | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 1.75% |
Greater than or equal to 50% but less than 55% | Line of Credit | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 1.95% |
Greater than or equal to 50% but less than 55% | Unsecured Term Loan | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 1.85% |
Greater than or equal to 55% | Line of Credit | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 2.25% |
Greater than or equal to 55% | Unsecured Term Loan | |
Debt Instrument [Line Items] | |
Basis spread on variable rate (as a percent) | 2.20% |
Debt - Schedule of Debt Covenan
Debt - Schedule of Debt Covenants (Details) - Senior Unsecured Credit Facility And Unsecured Term Loans | 3 Months Ended |
Mar. 31, 2024 | |
Covenant | |
Line of Credit Facility [Line Items] | |
Maximum leverage ratio | 60% |
Minimum fixed charge coverage ratio | 1.50 |
Secured recourse indebtedness | 45% |
Maximum unencumbered leverage ratio | 60% |
Minimum unencumbered implied debt service coverage ratio | 1.20 |
Actual | |
Line of Credit Facility [Line Items] | |
Maximum leverage ratio | 29.60% |
Minimum fixed charge coverage ratio | 2.87 |
Secured recourse indebtedness | 11.60% |
Maximum unencumbered leverage ratio | 30.80% |
Minimum unencumbered implied debt service coverage ratio | 2.46 |
Debt - Schedule of Components o
Debt - Schedule of Components of Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Debt Instrument [Line Items] | ||
Amortization of debt issuance costs and debt premium | $ 513 | $ 513 |
Interest rate swap mark-to-market | 0 | 2,014 |
Interest expense | 16,246 | 17,172 |
Mortgage Debt Interest | ||
Debt Instrument [Line Items] | ||
Debt, interest expenses | 4,034 | 4,091 |
Unsecured Term Loan Interest | ||
Debt Instrument [Line Items] | ||
Debt, interest expenses | 11,387 | 10,241 |
Credit Facility Interest and Unused Fees | ||
Debt Instrument [Line Items] | ||
Debt, interest expenses | $ 312 | $ 313 |
Derivatives - Schedule of Deriv
Derivatives - Schedule of Derivatives (Details) - Interest Rate Swap - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Fair Value of Assets | $ 5,281 | $ 4,321 |
Unsecured Term Loan Due July 2024 | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Fixed Rate | 1.63% | |
Notional Amount | $ 87,500 | |
Fair Value of Assets | $ 1,004 | 1,660 |
Unsecured Term Loan Due July 2024 - 1 | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Fixed Rate | 1.63% | |
Notional Amount | $ 87,500 | |
Fair Value of Assets | $ 1,002 | 1,658 |
Unsecured Term Loan Due January 2028 | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Fixed Rate | 3.36% | |
Notional Amount | $ 75,000 | |
Fair Value of Assets | $ 1,813 | 554 |
Unsecured Term Loan Due January 2027 | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Fixed Rate | 3.50% | |
Notional Amount | $ 75,000 | |
Fair Value of Assets | $ 1,462 | $ 449 |
Derivatives - Schedule of Gains
Derivatives - Schedule of Gains and Losses Recognized on Derivative Financial Statements (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Derivative [Line Items] | ||
Decrease to interest expense expected to be reclassified in the next twelve months (less than) | $ 2,700 | |
Designated as Hedging Instrument | Unrealized loss (gain) on interest rate derivative instruments | ||
Derivative [Line Items] | ||
(Loss) gain recognized | (960) | $ 84 |
Designated as Hedging Instrument | Interest expense | ||
Derivative [Line Items] | ||
(Loss) gain recognized | (2,357) | (147) |
Not Designated as Hedging Instrument | Interest expense | ||
Derivative [Line Items] | ||
(Loss) gain recognized | $ 0 | $ 469 |
Fair Value Measurements - (Deta
Fair Value Measurements - (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Amount | $ 1,174,733 | $ 1,177,005 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying Amount | 1,174,733 | 1,177,005 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value | $ 1,167,022 | $ 1,167,638 |
Equity (Details)
Equity (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 $ / shares shares | Mar. 31, 2024 USD ($) vote $ / shares shares | Mar. 31, 2023 USD ($) $ / shares | Dec. 31, 2023 USD ($) $ / shares shares | May 03, 2024 USD ($) | |
Class of Stock [Line Items] | |||||
Common stock, shares authorized (in shares) | shares | 400,000,000 | 400,000,000 | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
Votes per common share | vote | 1 | ||||
Repurchase of common stock | $ | $ 0 | $ 409,000 | |||
Preferred stock, shares authorized (up to) (in shares) | shares | 10,000,000 | 10,000,000 | |||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||
Preferred stock, dividend rate (as a percent) | 8.25% | ||||
Liquidation preference per share (in dollars per share) | $ 25 | $ 25 | |||
Limited partnership, price per unit (in dollars per share) | $ 11.76 | ||||
Option to redeem for common stock ratio | 1 | ||||
Common stock, dividend declared (in dollars per share) | 0.03 | $ 0.03 | |||
Distributions per preferred share (in dollars per share) | $ 0.5156 | $ 0.5156 | |||
Long-term Incentive Plan Unit | |||||
Class of Stock [Line Items] | |||||
Units outstanding (in shares) | shares | 228,380 | 314,137 | |||
Unaffiliated Third Parties | |||||
Class of Stock [Line Items] | |||||
Common units issued (in shares) | shares | 796,684 | ||||
Operating partnerships units held (in shares) | shares | 808,923 | 723,166 | |||
Subsequent Event | |||||
Class of Stock [Line Items] | |||||
Remaining repurchase amount | $ | $ 185,300,000 | ||||
Common Stock | |||||
Class of Stock [Line Items] | |||||
Aggregate offering price (up to) | $ | $ 200,000,000 | ||||
Shares sold (in shares) | shares | 0 | ||||
Value amount of shares authorized to be repurchased (up to) | $ | $ 200,000,000 | ||||
Shares repurchased (in shares) | shares | 318,454 | ||||
Repurchased shares, average price per share (in dollars per share) | $ 7.60 | ||||
Repurchase of common stock | $ | $ 2,400,000 | ||||
Series A Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Shares sold (in shares) | shares | 4,760,000 | 4,760,000 | |||
Preferred stock, dividend rate (as a percent) | 8.25% | 8.25% | |||
Liquidation preference per share (in dollars per share) | $ 25 | $ 25 | |||
Redemption price per share (in dollars per share) | $ 25 | $ 25 |
Equity Incentive Plans - Narrat
Equity Incentive Plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Feb. 27, 2024 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Conversion ratio | 1 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards expected to vest in 2024 (in shares) | 39,806 | ||
Awards expected to vest in 2025 (in shares) | 317,771 | ||
Awards expected to vest in 2026 (in shares) | 344,918 | ||
Awards expected to vest in 2027 (in shares) | 6,712 | ||
Awards expected to vest in 2028 (in shares) | 6,709 | ||
Unrecognized compensation cost | $ 4.3 | ||
Unrecognized compensation expense related to compensation awards, period for recognition (in months) | 22 months | ||
Compensation expense (reversal) | $ 1 | $ 1.1 | |
Performance Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards expected to vest in 2025 (in shares) | 329,163 | ||
Awards expected to vest in 2026 (in shares) | 368,736 | ||
Awards expected to vest in 2027 (in shares) | 35,813 | ||
Unrecognized compensation cost | $ 3.1 | ||
Unrecognized compensation expense related to compensation awards, period for recognition (in months) | 23 months | ||
Compensation expense (reversal) | $ 0.9 | 0.7 | |
Percentage of target award of maximum possible payout to executives (as a percent) | 150% | ||
Number of units earned if total stockholder return is negative (as a percent) | 100% | ||
Performance Stock Units | Executive Officers | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total shareholder return (as a percent) | 50% | ||
Hotel market share (as a percent) | 50% | ||
Maximum possible payout to executive officer as percentage of the target award (as a percent) | 150% | ||
Long-term Incentive Plan Unit | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awards expected to vest in 2024 (in shares) | 38,452 | ||
Awards expected to vest in 2025 (in shares) | 87,856 | ||
Awards expected to vest in 2026 (in shares) | 87,856 | ||
Awards expected to vest in 2027 (in shares) | 14,216 | ||
Unrecognized compensation cost | $ 1.7 | ||
Unrecognized compensation expense related to compensation awards, period for recognition (in months) | 27 months | ||
Compensation expense (reversal) | $ 0.4 | $ 0.1 | |
Minimum | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 3 years | ||
Minimum | Performance Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 3 years | ||
Performance period (in years) | 3 years | ||
Minimum | Performance Stock Units | Executive Officers | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of total stockholder return for payout of shares | 75% | ||
Maximum | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 5 years | ||
Maximum | Performance Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period (in years) | 5 years | ||
Percentage of total stockholder return for payout of shares | 30% | ||
2016 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option and incentive plan, shares authorized (up to) (in shares) | 6,082,664 | ||
2024 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option and incentive plan, shares authorized (up to) (in shares) | 7,900,000 |
Equity Incentive Plans - Stock
Equity Incentive Plans - Stock Awards Activity (Details) | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Restricted Stock | |
Number of Shares | |
Beginning balance (in shares) | shares | 1,200,693 |
Vested (in shares) | shares | (484,777) |
Ending balance (in shares) | shares | 715,916 |
Weighted- Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 9.33 |
Vested (in dollars per share) | $ / shares | 9.37 |
Ending balance (in dollars per share) | $ / shares | $ 9.30 |
Performance Stock Units | |
Number of Shares | |
Beginning balance (in shares) | shares | 1,032,296 |
Additional units from dividends (in shares) | shares | 3,277 |
Vested (in shares) | shares | (301,861) |
Ending balance (in shares) | shares | 733,712 |
Weighted- Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 9.34 |
Additional units from dividends (in dollars per share) | $ / shares | 9.45 |
Vested (in dollars per share) | $ / shares | 9.32 |
Ending balance (in dollars per share) | $ / shares | $ 9.35 |
Stock of common stock earned for the PSUs vested (as a percent) | 95.60% |
Long-term Incentive Plan Unit | |
Number of Shares | |
Beginning balance (in shares) | shares | 314,137 |
Vested (in shares) | shares | (85,757) |
Ending balance (in shares) | shares | 228,380 |
Weighted- Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 9.01 |
Vested (in dollars per share) | $ / shares | 8.94 |
Ending balance (in dollars per share) | $ / shares | $ 9.03 |
Equity Incentive Plans - Fair V
Equity Incentive Plans - Fair Value Assumptions (Details) - Shares related to unvested PSUs - $ / shares | Feb. 23, 2023 | Aug. 09, 2022 | Feb. 22, 2022 | Mar. 02, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Volatility | 74.50% | 73.30% | 71.40% | 68.80% |
Risk-Free Rate | 4.40% | 3.20% | 1.74% | 0.26% |
Fair value at grant date (in dollars per share) | $ 9.22 | $ 9.65 | $ 9.84 | $ 9.28 |
Fair value at grant date based on hotel market share (in dollars per share) | $ 8.94 | $ 9.32 | $ 9.56 | $ 9.40 |
Earnings Per Share - (Details)
Earnings Per Share - (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator: | ||
Net income attributable to common stockholders | $ 5,874 | $ 6,702 |
Denominator: | ||
Weighted-average number of common shares outstanding—basic (in shares) | 211,669,343 | 211,411,519 |
Effect of dilutive securities: | ||
Weighted-average number of common shares outstanding—diluted (in shares) | 212,342,467 | 211,814,722 |
Earnings per share: | ||
Earnings per share available to common stockholders—basic (in dollars per share) | $ 0.03 | $ 0.03 |
Earnings per share available to common stockholders—diluted (in dollars per share) | $ 0.03 | $ 0.03 |
Unvested restricted common stock | ||
Effect of dilutive securities: | ||
Unvested restricted common stock and shares related to unvested PSUs (in shares) | 218,366 | 197,410 |
Shares related to unvested PSUs | ||
Effect of dilutive securities: | ||
Unvested restricted common stock and shares related to unvested PSUs (in shares) | 454,758 | 205,793 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | 3 Months Ended |
Jun. 30, 2024 USD ($) | |
Forecast | |
Subsequent Event [Line Items] | |
Compensation expense (reversal) | $ 19 |