Notes Payable

6 Months Ended

Jun. 30, 2019

Notes Payable

Notes Payable

6. Notes Payable

Notes payable consisted of the following (in thousands):

	June 30,		December 31,
	2019		2018
	(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 both June 30, 2019 and December 31, 2018.	$	334,040	$	337,828
Note payable requiring payments of interest only, bearing a blended rate of one-month LIBOR plus 105 basis points; initial maturity in December 2020 with three one-year extensions. The note is collateralized by a first deed of trust on one hotel property.		220,000		220,000
Unsecured term loan requiring payments of interest only, with a blended interest rate based on a pricing grid with a range of 135 to 220 basis points over one-month 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 2.941%. 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 135 to 220 basis points over one-month 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 3.203%. 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		120,000
Unsecured Senior Notes requiring semi-annual payments of interest only, bearing interest at 4.79%; maturing in January 2028.		120,000		120,000
Total notes payable	$	979,040	$	982,828
Current portion of notes payable	$	8,133	$	7,804
Less: current portion of deferred financing costs		(1,966)		(1,966)
Carrying value of current portion of notes payable	$	6,167	$	5,838
Notes payable, less current portion	$	970,907	$	975,024
Less: long-term portion of deferred financing costs		(2,817)		(3,799)
Carrying value of notes payable, less current portion	$	968,090	$	971,225

As of June 30, 2019, the Company had no outstanding amounts due under its credit facility.

Interest Expense

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Interest expense on debt and finance lease obligations	$	11,484	$	11,479	$	22,993	$	22,745
Noncash interest on derivatives and finance lease obligations, net		3,634		(1,040)		5,753		(4,177)
Amortization of deferred financing costs		698		745		1,396		1,492
Total interest expense	$	15,816	$	11,184	$	30,142	$	20,060