7. Notes Payable

Notes payable consisted of the following (in thousands):


	September 30,		December 31,
	2017		2016
	(unaudited)
Notes payable requiring payments of interest and principal, with fixed rates ranging from 4.12% to 5.95%; maturing at dates ranging from November 2020 through January 2025. The notes are collateralized by first deeds of trust on four hotel properties at September 30, 2017, and five hotel properties at December 31, 2016.	$	347,233	$	528,604
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.		219,916		222,340
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		100,000
Unsecured Senior Notes requiring semi-annual payments of interest only, bearing interest at 4.69%; maturing in January 2026.		120,000		—
Unsecured Senior Notes requiring semi-annual payments of interest only, bearing interest at 4.79%; maturing in January 2028.		120,000		—
Total notes payable	$	992,149	$	935,944

Current portion of notes payable	$	10,431	$	186,034
Less: current portion of deferred financing fees		(1,270)		(1,105)
Carrying value of current portion of notes payable	$	9,161	$	184,929

Notes payable, less current portion	$	981,718	$	749,910
Less: long-term portion of deferred financing fees		(4,084)		(3,536)
Carrying value of notes payable, less current portion	$	977,634	$	746,374

Notes Payable Transactions - 2017

In January 2017, the Company received proceeds of $240.0 million in a private placement of senior unsecured notes. The private placement consisted of $120.0 million of notes bearing interest at a fixed rate of 4.69%, maturing in January 2026 (the “Series A Senior Notes”), and $120.0 million of notes bearing interest at a fixed rate of 4.79%, maturing in January 2028 (the “Series B Senior Notes,” together the “Senior Notes”).

In January 2017, the Company used proceeds received from the Senior Notes to repay the loan secured by the Marriott Boston Long Wharf, which had a balance of $176.0 million and an interest rate of 5.58%. The Marriott Boston Long Wharf loan was scheduled to mature in April 2017, and was available to be repaid without penalty in January 2017.

Interest Expense

Total interest incurred and expensed on the notes payable was as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Interest expense on debt and capital lease obligations	$	11,897	$	11,966	$	34,724	$	37,560
Noncash interest on derivatives and capital lease obligations, net		4,534		(1,374)		4,883		7,810
Amortization of deferred financing fees		577		544		1,734		1,648
Total interest expense	$	17,008	$	11,136	$	41,341	$	47,018