Long-Term Debt (Tables)

3 Months Ended

Mar. 31, 2015

Long-term Debt, Other Disclosures [Abstract]

Components of Long-Term Debt

Debt as of March 31, 2015 and December 31, 2014 consisted of the following:

			Balance Outstanding as of
Debt	Interest Rate	Maturity Date	March 31, 2015		December 31, 2014
Credit facilities
Senior unsecured credit facility	Floating (a)	January 2018 (a)	$	342,000	$	0
LHL unsecured credit facility	Floating (b)	January 2018 (b)	0		0
Total borrowings under credit facilities			342,000		0
Term loans
First Term Loan	Floating (c)	May 2019	177,500		177,500
Second Term Loan	Floating (c)	January 2019	300,000		300,000
Total term loans			477,500		477,500
Massport Bonds
Hyatt Boston Harbor (taxable)	Floating (d)	March 2018	5,400		5,400
Hyatt Boston Harbor (tax exempt)	Floating (d)	March 2018	37,100		37,100
Total bonds payable			42,500		42,500
Mortgage loans
Westin Copley Place	5.28%	September 2015 (e)	210,000		210,000
Westin Michigan Avenue	5.75%	April 2016	132,811		133,347
Indianapolis Marriott Downtown	5.99%	July 2016	97,158		97,528
The Roger	6.31%	August 2016	59,890		60,215
Total mortgage loans			499,859		501,090
Total debt			$	1,361,859	$	1,021,090

^(a)  Borrowings bear interest at floating rates equal to, at the Company’s option, either (i) LIBOR plus an applicable margin, or (ii) an Adjusted Base Rate plus an applicable margin. As of March 31, 2015, the rate, including the applicable margin, for the Company’s outstanding LIBOR borrowing of $342,000 was 1.88%. There were no borrowings outstanding at December 31, 2014. The Company has the option, pursuant to certain terms and conditions, to extend the maturity date for twosix-month extensions.

^(b)  Borrowings bear interest at floating rates equal to, at LHL’s option, either (i) LIBOR plus an applicable margin, or (ii) an Adjusted Base Rate plus an applicable margin. There were no borrowings outstanding at March 31, 2015 and December 31, 2014. LHL has the option, pursuant to certain terms and conditions, to extend the maturity date for twosix-month extensions.

^(c)  Term loans bear interest at floating rates equal to LIBOR plus an applicable margin. The Company entered into separate interest rate swap agreements for the full seven-year term of the First Term Loan (as defined below) and a five-year term ending in August 2017 for the Second Term Loan (as defined below), resulting in fixed all-in interest rates at March 31, 2015 and December 31, 2014 of 3.62% and 2.38%, respectively, at the Company’s current leverage ratio (as defined in the swap agreements).

^(d)  The Massport Bonds are secured by letters of credit issued by U.S. Bank National Association (“U.S. Bank”) that expire in September 2016. The letters of credit have twoone-year extension options and are secured by the Hyatt Boston Harbor. The letters of credit cannot be extended beyond the Massport Bonds’ maturity date. The bonds bear interest based on weekly floating rates. The interest rates as of March 31, 2015 and December 31, 2014 were 0.13% and 0.03% for the $5,400 and $37,100 bonds, respectively. The Company incurs an annual letter of credit fee of 1.35%.

^(e)  The Company intends to repay the mortgage loan upon maturity through either borrowings on its credit facilities, placement of corporate-level debt or proceeds from a property-level mortgage financing.

Schedule of Maturities of Long-term Debt

Future scheduled debt principal payments as of March 31, 2015 are as follows:

2015	$	213,565
2016	286,294
2017	0
2018	384,500
2019	477,500
Total debt	$	1,361,859

Summary Interest Expense and Weighted Average Interest Rates for Borrowings

A summary of the Company’s interest expense and weighted average interest rates for variable rate debt for the three months endedMarch 31, 2015 and 2014 is as follows:

	For the three months ended
	March 31,
	2015			2014
Interest Expense:
Interest incurred	$	13,322		$	13,519
Amortization of deferred financing costs	547			528
Capitalized interest	(224		)	(59		)
Interest expense	$	13,645		$	13,988
Weighted Average Interest Rates for Variable Rate Debt:
Senior unsecured credit facility	1.88		%	1.87		%
LHL unsecured credit facility	1.87		%	1.91		%
Massport Bonds	0.04		%	0.45		%

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The following tables present the effect of derivative instruments on the Company’s consolidated statements of operations and comprehensive loss, including the location and amount of unrealized (loss) gain on outstanding derivative instruments in cash flow hedging relationships, for the three months endedMarch 31, 2015 and 2014:

	Amount of (Loss) Gain Recognized in OCL on Derivative Instruments					Location of Gain (Loss) Reclassified from AOCL into Net Income (Loss)	Amount of Gain (Loss) Reclassified from AOCL into Net Income (Loss)
	(Effective Portion)					(Effective Portion)	(Effective Portion)
	For the three months ended						For the three months ended
	March 31,						March 31,
	2015			2014			2015		2014
Derivatives in cash flow hedging relationships:
Interest rate swaps	$	(4,398	)	$	111	Interest expense	$	1,070	$	(1,083	)