Debt (Tables)

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Summary of long term debt

The following table sets forth information regarding the Company’s debt as of March 31, 2020 and December 31, 2019 (dollars in thousands):

			Principal Balance as of
Loan	Interest Rate as of March 31, 2020	Maturity Date	March 31, 2020			December 31, 2019
Salt Lake City Marriott Downtown mortgage loan	4.25%	November 2020 (1)	$	52,968		$	53,273
Westin Washington D.C. City Center mortgage loan	3.99%	January 2023	59,988			60,550
The Lodge at Sonoma, a Renaissance Resort & Spa mortgage loan	3.96%	April 2023	26,846			26,963
Westin San Diego mortgage loan	3.94%	April 2023	61,456			61,851
Courtyard Manhattan / Midtown East mortgage loan	4.40%	August 2024	80,716			81,107
Renaissance Worthington mortgage loan	3.66%	May 2025	80,483			80,904
JW Marriott Denver at Cherry Creek mortgage loan	4.33%	July 2025	60,954			61,253
Boston Westin mortgage loan	4.36%	November 2025	189,759			190,725
New Market Tax Credit loan (2)	5.17%	December 2020	2,943			2,943
Unamortized debt issuance costs			(3,046		)	(3,240		)
Total mortgage and other debt, net of unamortized debt issuance costs			613,067			616,329
Unsecured term loan	LIBOR + 1.35% (3)	October 2023	50,000			50,000
Unsecured term loan	LIBOR + 1.35% (4)	July 2024	350,000			350,000
Unamortized debt issuance costs			(1,159		)	(1,230		)
Unsecured term loans, net of unamortized debt issuance costs			398,841			398,770
Senior unsecured credit facility	LIBOR + 1.40%	July 2023 (5)	400,000			75,000
Total debt, net of unamortized debt issuance costs			$	1,411,908		$	1,090,099
Weighted-Average Interest Rate	3.24%

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(1) We have agreed to a term sheet to extend the maturity of the mortgage loan secured by the Salt Lake City Marriott Downtown to January 2022, subject to due diligence and other customary conditions.

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

(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.

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

Summary of applicable margin based upon the Company’s ratio of net indebtedness to EBITDA

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

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

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

Summary of the most restrictive covenants for senior unsecured credit facility

The Revolving Credit Facility and unsecured term loan agreements contain various corporate financial covenants. A summary of the most restrictive covenants is as follows:

		Actual at
	Covenant	March 31, 2020
Maximum leverage ratio (1)	60%	34.5%
Minimum fixed charge coverage ratio (2)	1.50x	2.92x
Secured recourse indebtedness	Less than 45% of Total Asset Value	20.9%
Unencumbered leverage ratio	60.0%	50.3%
Unencumbered implied debt service coverage ratio	1.2x	1.49x

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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.