We are authorized to issue up to 7,900,000 shares of our common stock under our 2024 Equity Incentive Plan (the “2024 Plan”), of which we have issued or committed to issue 4,111,013 shares as of June 30, 2026. Shares underlying awards that are granted under the 2024 Plan that are forfeited, cancelled, reacquired prior to vesting, satisfied without the issuance of stock or otherwise terminated (other than by exercise), including shares tendered or held back upon settlement of an award, other than a stock option or stock appreciation right, to cover the tax withholding will be added back to the shares available for issuance under the 2024 Plan.

Restricted stock awards issued to our officers and employees generally vest over a three to five year period from the date of grant based on continued employment. We measure compensation expense for the restricted stock awards based upon the fair market value of our common stock at the date of grant. 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. A summary of our restricted stock awards from January 1, 2026 to June 30, 2026 is as follows:

The total unvested restricted stock awards as of June 30, 2026 are expected to vest as follows: 7,986 during 2026, 416,063 during 2027, 313,957 during 2028, and 151,734 during 2029. As of June 30, 2026, the unrecognized compensation cost related to restricted stock awards was $6.8 million and the weighted-average period over which the unrecognized compensation expense will be recorded is approximately 26 months. We recorded $1.1 million and $2.0 million of compensation expense related to restricted stock awards for the three and six months ended June 30, 2026, respectively. We recorded $0.8 million and $1.5 million of compensation expense related to restricted stock awards for the three and six months ended June 30, 2025, respectively.

Performance stock units (“PSUs”) are restricted stock units that generally vest three years from the date of grant. Each executive officer is granted a target number of PSUs (the “PSU Target Award”). For PSUs granted in 2025 and 2026, the actual number of shares of common stock issued to each executive officer is based on the Company's achievement of certain levels of total stockholder return relative to the total stockholder return of a peer group of publicly-traded lodging REITs 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 300% of the PSU Target Award and is earned if our total stockholder return is equal to or greater than the 90th percentile of the total stockholder returns of the peer group. There are limitations on the number of PSUs earned if the Company's total stockholder return is negative for the performance period.

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 is determined using a Monte Carlo simulation performed by a third-party valuation firm. The determination of the grant-date fair values of our outstanding PSUs as of June 30, 2026 included the following assumptions:


Award Grant Date	Volatility	Risk-Free Rate	Total Stockholder Return PSUs	Hotel Market Share PSUs (1)


August 9, 2022	73.3%	3.20%	$9.65	$9.32

May 7, 2024	36.5%	4.64%	$8.03	$8.72
March 3, 2025	32.0%	3.93%	$10.53	N/A
March 30, 2026	27.7%	3.83%	$10.27	N/A


	Number of Target Units	Weighted- Average Grant Date Fair Value
Unvested balance at January 1, 2026	1,467,411	$	9.31
Granted	501,598	10.27
Additional units from dividends	25,350	11.20
Vested (1)	(399,570)	9.01

Unvested balance at June 30, 2026	1,594,789	$	9.72

The total unvested PSUs as of June 30, 2026 are expected to vest as follows: 439,827 during 2027, 645,264 during 2028, and 509,698 during 2029. The number of shares earned upon vesting is subject to the attainment of the performance targets described above. As of June 30, 2026, the unrecognized compensation cost related to the PSUs was $8.4 million and is expected to be recognized on a straight-line basis over a weighted average period of 26 months. We recorded $1.1 million and $1.8 million of compensation expense related to the PSUs for the three and six months ended June 30, 2026. We recorded $0.8 million and $1.3 million of compensation expense related to the PSUs for the three and six months ended June 30, 2025.

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 year, executives have the option to elect to receive their annual grant of share-based compensation as either LTIP units or restricted stock awards. 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.

The total unvested LTIP units as of June 30, 2026 are expected to vest as follows: 14,217 during 2026 and 46,709 during 2027. As of June 30, 2026, the unrecognized compensation cost related to LTIP unit awards was $0.3 million and the weighted-average period over which the unrecognized compensation expense will be recorded is approximately 10 months. We recorded $0.1 million and $0.2 million of compensation expense related to LTIP unit awards for both the three and six months ended June 30, 2026 and 2025, respectively.

We issue each nonemployee director either (i) fully vested, unrestricted shares of common stock or (ii) Deferred Stock Units (as defined in the 2024 Plan) granting a number of immediately vested but deferred stock units (together, the “nonemployee director awards”). We measure compensation expense for the nonemployee director awards based upon the fair market value of our common stock at the date of grant. Compensation expense is recognized in the period the nonemployee director awards are granted and is included in corporate expenses in the accompanying consolidated statements of operations and comprehensive income.

During the three and six months ended June 30, 2026, we granted a total of 75,271 nonemployee director awards at a grant date fair value of $10.23. We recorded $0.8 million of compensation expense related to nonemployee director awards for the three and six months ended June 30, 2026. We recorded $0.9 million of compensation expense related to nonemployee director awards for the three and six months ended June 30, 2025.