Debt (Tables)

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Summary of Long Term Debt

The following table sets forth information regarding the Company’s debt as of December 31, 2019 and 2018 (dollars in thousands):

				Principal Balance as of December 31,
Loan	Interest Rate		Maturity Date	2019			2018
Salt Lake City Marriott Downtown mortgage loan	4.25	%	November 2020	$	53,273		$	55,032
Westin Washington D.C. City Center mortgage loan	3.99	%	January 2023	60,550			62,734
The Lodge at Sonoma, a Renaissance Resort & Spa mortgage loan	3.96	%	April 2023	26,963			27,633
Westin San Diego mortgage loan	3.94	%	April 2023	61,851			63,385
Courtyard Manhattan / Midtown East mortgage loan	4.40	%	August 2024	81,107			82,620
Renaissance Worthington mortgage loan	3.66	%	May 2025	80,904			82,540
JW Marriott Denver at Cherry Creek mortgage loan	4.33	%	July 2025	61,253			62,411
Boston Westin mortgage loan	4.36	%	November 2025	190,725			194,466
New Market Tax Credit loan (1)	5.17	%	December 2020	2,943			2,943
Unamortized debt issuance costs				(3,240		)	(4,017		)
Total mortgage and other debt, net of unamortized debt issuance costs				616,329			629,747
Unsecured term loan	LIBOR + 1.45% (2)		May 2021	—			100,000
Unsecured term loan	LIBOR + 1.45% (2)		April 2022	—			200,000
Unsecured term loan	LIBOR + 1.40% (3)		October 2023	50,000			50,000
Unsecured term loan	LIBOR + 1.40% (4)		July 2024	350,000			—
Unamortized debt issuance costs				(1,230		)	(1,781		)
Unsecured term loans, net of unamortized debt issuance costs				398,770			348,219
Senior unsecured credit facility	LIBOR + 1.45%		July 2023 (5)	75,000			—
Total debt, net of unamortized debt issuance costs				$	1,090,099		$	977,966
Weighted-Average Interest Rate	3.81%

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(1) Assumed in connection with the acquisition of the Hotel Palomar Phoenix on March 1, 2018.

(2) The loan was prepaid on July 25, 2019 in connection with the refinancing described below under the heading "Unsecured Term Loans."

(3) We entered into an interest rate swap agreement on January 7, 2019 to fix LIBOR at 2.41% through October 2023.

(4) We entered into an interest rate swap agreement on July 25, 2019 to fix LIBOR at 1.70% through July 2024 for $175 million of the

loan.

(5) The credit facility may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary

conditions. On July 25, 2019, the credit facility was amended to increase capacity to $400 million and extend maturity to July 2023.

Schedule of Maturities of Long-Term Debt

The aggregate debt maturities as of December 31, 2019 are as follows (in thousands):

2020	$	69,116
2021	13,518
2022	14,096
2023	194,650
2024	432,381
Thereafter	295,808
	$	1,019,569

Summary of Leverage and Applicable Margin

The interest rate on each of the term loans is based on LIBOR, plus an applicable margin based on the Company’s leverage ratio, as follows:

Leverage Ratio	Applicable Margin
Less than or equal to 30%	1.35%
Greater than 30% but less than or equal to 35%	1.40%
Greater than 35% but less than or equal to 40%	1.45%
Greater than 40% but less than or equal to 45%	1.50%
Greater than 45% but less than or equal to 50%	1.65%
Greater than 50% but less than or equal to 55%	1.85%
Greater than 55%	2.00%

The interest rate on the Revolving Credit Facility is based upon LIBOR, plus an applicable margin based upon the Company’s leverage ratio, as follows:

Leverage Ratio	Applicable Margin
Less than or equal to 30%	1.40%
Greater than 30% but less than or equal to 35%	1.45%
Greater than 35% but less than or equal to 40%	1.50%
Greater than 40% but less than or equal to 45%	1.55%
Greater than 45% but less than or equal to 50%	1.70%
Greater than 50% but less than or equal to 55%	1.90%
Greater than 55%	2.05%

Summary of the Most Restrictive Covenants for Senior Unsecured Credit Facility

The Revolving Credit Facility also contains various corporate financial covenants. A summary of the most restrictive covenants is as follows:

		Actual at
	Covenant	December 31, 2019
Maximum leverage ratio (1)	60%	28.5%
Minimum fixed charge coverage ratio (2)	1.50x	3.49x
Secured recourse indebtedness	Less than 45% of Total Asset Value	18.6%
Unencumbered leverage ratio	60.0%	26.0%
Unencumbered implied debt service coverage ratio	1.20x	2.84x

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(1) Leverage ratio is net indebtedness, as defined in the credit agreement, divided by total asset value, defined in the credit agreement as the value of our owned hotels based on hotel net operating income divided by a defined capitalization rate.

(2) Fixed charge coverage ratio is Adjusted EBITDA, generally defined in the credit agreement as EBITDA less FF&E reserves, for the most recently ending 12 months, to fixed charges, which is defined in the credit agreement as interest expense, all regularly scheduled principal payments and payments on capitalized lease obligations, for the same most recently ending 12-month period.