Notes Payable (Tables)

12 Months Ended

Dec. 31, 2024

Debt Disclosures

Schedule of notes payable

Notes payable consisted of the following (in thousands):

						Balance Outstanding as of
	December 31, 2024					December 31,		December 31,
	Rate Type		Interest Rate		Maturity Date	2024		2023
Mortgage Loans
JW Marriott New Orleans	Fixed		4.15	%	December 11, 2024	$	—		74,050
Unsecured Corporate Credit Facilities (1)
Term Loan 1	Fixed	(2)	5.27	%	July 25, 2027	$	175,000	$	175,000
Term Loan 2	Variable	(3)	6.02	%	January 25, 2028		175,000		175,000
Term Loan 3	Variable	(4)	5.83	%	May 1, 2025		225,000		225,000
Term Loan 4	Variable	(5)	5.93	%	November 7, 2025		100,000		—
Total unsecured corporate credit facilities						$	675,000	$	575,000
Unsecured Senior Notes
Series A	Fixed		4.69	%	January 10, 2026	$	65,000	$	65,000
Series B	Fixed		4.79	%	January 10, 2028		105,000		105,000
Total unsecured senior notes						$	170,000	$	170,000
Total debt						$	845,000	$	819,050
Unamortized deferred financing costs							(3,953)		(4,491)
Debt, net of unamortized deferred financing costs						$	841,047	$	814,559

(1) The variable interest rates on the Company’s unsecured corporate credit facilities are based on a pricing grid with a range of 1.35% to 2.20%, depending on the Company’s leverage ratios, plus SOFR and a 0.10% adjustment.

(2) Term Loan 1 is subject to two interest rate swap derivatives (see Note 5). The Company did not achieve its 2023 sustainability performance metric as specified in the Second Amended Credit Agreement, resulting in Term Loan 1’s pricing grid returning to its range of 1.35% to 2.20% in May 2024, an increase of 0.02% from the previous year. The achievement of the sustainability metric and its impact on the pricing grid is evaluated annually. The effective interest rates on Term Loan 1 were 5.27% and 5.25% at December 31, 2024 and 2023, respectively.

(3) The Company did not achieve its 2023 sustainability performance metric as specified in the Second Amended Credit Agreement, resulting in Term Loan 2’s pricing grid returning to its range of 1.35% to 2.20% in May 2024, an increase of 0.02% from the previous year. The achievement of the sustainability metric and its impact on the pricing grid is evaluated annually. The effective interest rates on Term Loan 2 were 6.02% and 6.77% at December 31, 2024 and 2023, respectively.

(4) Term Loan 3’s effective interest rates were 5.83% and 6.81% at December 31, 2024 and 2023, respectively.

(5) Term Loan 4’s effective interest rate was 5.93% at December 31, 2024 (see Note 15).

Schedule of aggregate future principal maturities and amortization of notes payable

Aggregate future principal maturities of notes payable at December 31, 2024, were as follows (in thousands):

2025	$	—
2026		390,000	(1)
2027		175,000
2028		280,000
2029		—
Thereafter		—
Total	$	845,000

(1) Includes Term Loan 3 and Term Loan 4 assuming the Company has exercised its options to extend the maturity of the loans from May 1, 2025 to May 1, 2026 and from November 7, 2025 to November 7, 2026, respectively, upon payment of applicable fees and the satisfaction of certain customary conditions.

Schedule of deferred financing costs and (loss) gain on extinguishment of debt

Deferred financing costs and gain (loss) on extinguishment of debt, net were as follows (in thousands):

	2024 (1)		2023 (2)		2022 (3)
Payments of deferred financing costs	$	1,105	$	2,332	$	7,404
Gain (loss) on extinguishment of debt, net	$	59	$	9,938	$	(936)

(1) During 2024, the Company paid a total of $1.1 million in deferred financing costs related to Term Loan 4. In addition, the Company recognized a gain of $0.1 million associated with the assignment-in-lieu of a hotel to the hotel’s mortgage holder in 2020 due to reassessments of the remaining potential employee-related obligations and the release of the remaining potential employee-related obligations in conjunction with the termination of the escrow agreement during the second quarter of 2024 (see Note 14).

(2) During 2023, the Company paid a total of $2.3 million in deferred financing costs related to Term Loan 3. In addition, the Company recognized a gain of $9.9 million associated with the assignment-in-lieu of a hotel to the hotel’s mortgage holder in 2020, comprising $9.8 million from the relief of a majority of the potential employee-related obligations, with the funds released to the Company from escrow, and $0.1 million due to reassessments of the remaining potential employee-related obligations held in escrow (see Note 14).

(3) During 2022, the Company paid a total of $7.4 million in deferred financing costs related to its Amended Credit Agreement. In addition, the Company recognized a net loss of $0.9 million, comprising losses of $0.2 million related to the accelerated amortization of deferred financing costs associated with the partial repayments of the senior notes and $0.8 million related to lender fees and the accelerated amortization of deferred financing costs associated with the Amended Credit Agreement. These losses were slightly offset by a gain of $0.1 million associated with the assignment-in-lieu of a hotel to the hotel’s mortgage holder in 2020 due to reassessments of the potential employee-related obligations held in escrow (see Note 14).

Schedule of interest expense

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

	2024		2023		2022
Interest expense on debt and finance lease obligation	$	49,003	$	48,727	$	31,713
Noncash interest on derivatives, net		(540)		252		(2,194)
Amortization of deferred financing costs		3,047		2,700		2,486
Capitalized interest		(1,385)		—		—
Total interest expense	$	50,125	$	51,679	$	32,005