Notes Payable (Tables)

6 Months Ended

Jun. 30, 2022

Debt Disclosures

Schedule of notes payable

Notes payable consisted of the following (in thousands):

		June 30,		December 31,
		2022		2021
		(unaudited)
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 2.305% and 1.140% at June 30, 2022 and December 31, 2021, respectively; matures on December 9, 2022 with one remaining one-year option to extend (subject to a 25 basis point increase in the LIBOR spread), which the Company intends to exercise. The note is collateralized by a first deed of trust on one hotel property.		$	220,000	$	220,000
Note payable requiring payments of interest and principal, with a fixed rate of 4.15%; matures on December 11, 2024. The note is collateralized by a first deed of trust on one hotel property.			77,143		78,137
Unsecured Term Loan 1 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 as of June 30, 2022, and a range of 135 to 235 basis points, depending on the Company's leverage ratios, plus the greater of one-month LIBOR or 25 basis points as of December 31, 2021. LIBOR has been swapped to a fixed rate of 1.591%, resulting in effective interest rates of 2.941% and 3.941% at June 30, 2022 and December 31, 2021, respectively. Matures on September 3, 2022.	(1)		19,400		19,400
Unsecured Term Loan 2 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 as of June 30, 2022, and a range of 135 to 235 basis points, depending on the Company's leverage ratios, plus the greater of one-month LIBOR or 25 basis points as of December 31, 2021. LIBOR has been swapped to a fixed rate of 1.853%, resulting in effective interest rates of 3.203% and 4.203% at June 30, 2022 and December 31, 2021, respectively. Matures on January 31, 2023.	(1)		88,900		88,900
Unsecured revolving credit facility requiring payments of interest only, with a blended interest rate based on a pricing grid with a range of 140 to 225 basis points, depending on the Company's leverage ratios, plus the greater of one-month LIBOR or 25 basis points, resulting in an effective interest rate of 3.18597% at June 30, 2022. Matures on April 14, 2023. The interests of 13 hotel subsidiaries are pledged to the credit facility.	(1)		230,000		—
Unsecured Series A Senior Notes requiring semi-annual payments of interest only, bearing interest at 5.94%. Matures on January 10, 2026.			65,000		90,000
Unsecured Series B Senior Notes requiring semi-annual payments of interest only, bearing interest at 6.04%. Matures on January 10, 2028.			105,000		115,000
Total notes payable		$	805,443	$	611,437
Current portion of notes payable		$	2,043	$	21,401
Less: current portion of deferred financing costs			(397)		(707)
Carrying value of current portion of notes payable		$	1,646	$	20,694
Notes payable, less current portion		$	803,400	$	590,036
Less: long-term portion of deferred financing costs			(1,024)		(1,295)
Carrying value of notes payable, less current portion		$	802,376	$	588,741

(1) In July 2022, the Company amended the agreements related to its credit facility and term loans, resulting in an increase in the aggregate amount of the term loans from $108.3 million to $350.0 million and the repayment of the $230.0 million outstanding under the credit facility (see Note 13).

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,
	2022		2021		2022		2021
Interest expense on debt and finance lease obligation	$	6,290	$	8,037	$	12,533	$	15,820
Noncash interest on derivatives, net		(1,023)		(709)		(2,865)		(1,578)
Amortization of deferred financing costs		671		737		1,351		1,472
Total interest expense	$	5,938	$	8,065	$	11,019	$	15,714