Notes Payable (Tables)

12 Months Ended

Dec. 31, 2015

Notes Payable

Schedule of notes payable

Notes payable consisted of the following at December 31 (in thousands):

	2015		2014
Notes payable requiring payments of interest and principal, with fixed rates ranging from 4.12% to 5.95%; maturing at dates ranging from July 2016 through January 2025. The notes are collateralized by first deeds of trust on eight hotel properties at December 31, 2015, and 14 hotel properties at December 31, 2014.	$	791,073	$	1,023,780
Note payable requiring payments of interest and principal, bearing a blended rate of one-month LIBOR plus 225 basis points; maturing in August 2019. The note is collateralized by a first deed of trust on one hotel property.		225,407		228,296
Note payable requiring payments of interest only through October 2013, and interest and principal thereafter, with a blended interest rate of one-month LIBOR plus 325 basis points; maturing in October 2018. The note is collateralized by a first deed of trust on one hotel property at December 31, 2014.		—		177,216
Unsecured term loan requiring payments of interest only, with a blended interest rate based on a pricing grid with a range of 180 to 255 basis points over LIBOR, depending on the Company's leverage ratios. LIBOR has been swapped to a fixed rate of 1.591%, reflecting an interest rate of 3.391% based on the Company's current leverage. Matures in September 2022.		85,000		—
Total notes payable	$	1,101,480	$	1,429,292
Current portion of notes payable	$	86,840	$	121,328
Less: current portion of deferred financing fees		(1,064)		(1,721)
Current portion of notes payable, net	$	85,776	$	119,607
Notes payable, less current portion	$	1,014,640	$	1,307,964
Less: long-term portion of deferred financing fees		(3,821)		(5,827)
Notes payable, less current portion, net	$	1,010,819	$	1,302,137

Schedule of aggregate future principal maturities and amortization of notes payable

Aggregate future principal maturities and amortization of notes payable at December 31, 2015, are as follows (in thousands):

2016	$	86,840
2017		254,733
2018		121,002
2019		223,880
2020		84,137
Thereafter		330,888
Total	$	1,101,480

Schedule of deferred finance fees and loss on extinguishment of debt

Deferred financing fees and losses on extinguishment of debt for the years ended December 31, 2015, 2014 and 2013 were as follows (in thousands):

	2015 (1)		2014 (2)		2013 (3)
Payments of deferred financing fees	$	5,861	$	2,346	$	243
Write-off of deferred financing fees	$	455	$	—	$	—
Loss on extinguishment of debt	$	2,964	$	4,638	$	3,159

(1) During the year ended December 31, 2015, the Company paid $5.9 million in deferred financing fees related to its new credit facility and two new term loan agreements, as well as its new loans entered into in December 2014 secured by the Embassy Suites La Jolla and the JW Marriott New Orleans. In addition, during 2015, the Company wrote off $0.5 million in deferred financing fees related to its prior credit facility, and incurred a total of $3.0 million in losses on extinguishment of debt related to its 2015 debt repayments.

(2) During the year ended December 31, 2014, the Company paid additional deferred financing fees of $2.3 million related to its amendment of the mortgage secured by the Hilton San Diego Bayfront, as well as the refinancing of the mortgages secured by the JW Marriott New Orleans and the Embassy Suites La Jolla. In addition, the Company incurred a total of $4.6 million in losses on the extinguishment of debt related to the portion of the Hilton San Diego Bayfront loan associated with the prior lender who chose not to participate in the loan’s refinancing, along with the repayment and extinguishment of the prior mortgages secured by the JW Marriott New Orleans and the Embassy Suites La Jolla.

(3) During the year ended December 31, 2013, the Company paid additional deferred financing fees of $0.2 million related to the assumption of a mortgage in connection with the acquisition of the Boston Park Plaza and the purchase of an interest rate cap derivative agreement on the Hilton San Diego Bayfront mortgage. In addition, the Company incurred a $3.2 million loss on extinguishment of debt associated with its extinguishment and prepayment of debt associated with the Rochester Portfolio, which it sold in January 2013 (see Note 4).

Schedule of interest expense on notes payable

Interest Expense

Total interest incurred and expensed on the notes payable for the years ended December 31, 2015, 2014 and 2013 was as follows (in thousands):

	2015		2014		2013
Interest expense on debt and capital lease obligations	$	63,677	$	70,067	$	69,806
Gain on derivatives, net		(309)		(529)		(525)
Amortization and write-off of deferred financing fees		3,148		2,777		2,955
Accretion of Senior Notes		—		—		3
Total interest expense	$	66,516	$	72,315	$	72,239