Construction of reduced-order models (ROMs) for hyperbolic conservation laws is notoriously challenging mainly due to the translational property and nonlinearity of the governing equations. While the Lagrangian framework for ROM construction resolves the translational issue, it is valid only before a shock forms. Once that occurs, characteristic lines cross each other and projection from a high-fidelity model space onto a ROM space distorts a moving grid, resulting in numerical instabilities. We address this grid distortion issue by developing a physics-aware dynamic mode decomposition (DMD) method based on hodograph transformation. The latter provides a map between the original nonlinear system and its linear counterpart, which coincides with the Koopman operator. This strategy is consistent with the spirit of physics-aware DMDs in that it retains information about shock dynamics. Several numerical examples are presented to validate the proposed physics-aware DMD approach for construction of accurate ROMs.