Notes Payable (Tables)

6 Months Ended

Jun. 30, 2021

Notes Payable

Schedule of notes payable

Notes payable consisted of the following (in thousands):

	June 30,		December 31,
	2021		2020
	(unaudited)
Notes payable requiring payments of interest and principal, with fixed rates ranging from 4.12% to 4.15%; maturing at dates ranging from December 11, 2024 through January 6, 2025. The notes are collateralized by first deeds of trust on two hotel properties at both June 30, 2021 and December 31, 2020.	$	136,303	$	137,945
Note payable requiring payments of interest only, bearing a blended rate of one-month LIBOR plus 105 basis points, resulting in effective interest rates of 1.144% and 1.192% at June 30, 2021 and December 31, 2020, respectively; matures on December 9, 2021 with two one-year options to extend, which the Company intends to exercise. 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, depending on the Company's leverage ratios, plus the greater of one-month LIBOR or 25 basis points. LIBOR has been swapped to a fixed rate of 1.591%, resulting in an effective interest rate of 3.941%. Matures on September 3, 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, depending on the Company's leverage ratios, plus the greater of one-month LIBOR or 25 basis points. LIBOR has been swapped to a fixed rate of 1.853%, resulting in an effective interest rate of 4.203%. Matures on January 31, 2023.		100,000		100,000
Unsecured Series A Senior Notes requiring semi-annual payments of interest only, bearing interest at 5.94%. Matures on January 10, 2026.		90,000		90,000
Unsecured Series B Senior Notes requiring semi-annual payments of interest only, bearing interest at 6.04%. Matures on January 10, 2028.		115,000		115,000
Total notes payable	$	746,303	$	747,945
Current portion of notes payable	$	3,375	$	3,305
Less: current portion of deferred financing costs		(1,044)		(1,044)
Carrying value of current portion of notes payable	$	2,331	$	2,261
Notes payable, less current portion	$	742,928	$	744,640
Less: long-term portion of deferred financing costs		(1,591)		(2,112)
Carrying value of notes payable, less current portion	$	741,337	$	742,528

Schedule of interest expense

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Interest expense on debt and finance lease obligation	$	8,037	$	12,037	$	15,820	$	22,765
Noncash interest on derivatives		(709)		216		(1,578)		6,296
Amortization of deferred financing costs		737		697		1,472		1,396
Total interest expense	$	8,065	$	12,950	$	15,714	$	30,457