Notes Payable (Tables)

12 Months Ended

Dec. 31, 2016

Notes Payable

Schedule of notes payable

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

	2016		2015
Notes payable requiring payments of interest and principal, with fixed rates ranging from 4.12% to 5.95%; maturing at dates ranging from April 2017 through January 2025. The notes are collateralized by first deeds of trust on five hotel properties at December 31, 2016, and eight hotel properties at December 31, 2015.	$	528,604	$	791,073
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.		222,340		225,407
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%, resulting in an effective interest rate of 3.391% based on the Company's current leverage. Matures in September 2022.		85,000		85,000
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 1.853%, resulting in an effective interest rate of 3.653% based on the Company's current leverage. Matures in January 2023.		100,000		—
Total notes payable	$	935,944	$	1,101,480
Current portion of notes payable	$	186,034	$	86,840
Less: current portion of deferred financing fees		(1,105)		(1,064)
Carrying value of current portion of notes payable	$	184,929	$	85,776
Notes payable, less current portion	$	749,910	$	1,014,640
Less: long-term portion of deferred financing fees		(3,536)		(3,821)
Carrying value of notes payable, less current portion	$	746,374	$	1,010,819

Schedule of aggregate future principal maturities and amortization of notes payable

Aggregate future principal maturities and amortization of notes payable at December 31, 2016, are as follows (in thousands):

2017	$	186,034
2018		11,006
2019		223,880
2020		84,137
2021		111,247
Thereafter		319,640
Total	$	935,944

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, 2016, 2015 and 2014 were as follows (in thousands):

	2016 (1)		2015 (2)		2014 (3)
Payments of deferred financing costs	$	1,759	$	5,861	$	2,346
Accelerated amortization of deferred financing fees	$	—	$	455	$	—
Loss on extinguishment of debt	$	284	$	2,964	$	4,638

(1) During the year ended December 31, 2016, the Company paid a total of $1.8 million in deferred financing fees related to its new $100.0 million unsecured term loan, its credit facility and its senior unsecured notes (see Note 14). In addition, during 2016, the Company incurred a loss on extinguishment of debt totaling $0.3 million related to its 2016 debt repayments.

(2) During the year ended December 31, 2015, the Company paid a total of $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.

(3) 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 its amendment of the Hilton San Diego Bayfront loan, along its 2014 debt repayments.

Schedule of interest incurred and expensed

Interest Expense

Total interest incurred and expensed on the notes payable for the years ended December 31, 2016, 2015 and 2014 was as follows (in thousands):

	2016		2015		2014
Interest expense on debt and capital lease obligations	$	49,509	$	63,677	$	70,067
Gain on derivatives, net		(1,426)		(309)		(529)
Amortization of deferred financing fees		2,200		3,148		2,777
Total interest expense	$	50,283	$	66,516	$	72,315