DEBT (Tables)

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Schedule of outstanding indebtedness

At December 31, 2016 and 2015 our outstanding indebtedness was as follows (in thousands):

Lender	Reference	Interest Rate	Amortization Period (Years)	Maturity Date	Number of  Properties Encumbered	Balance at
						December 31,
					12/31/2016	2016			2015
$450 Million Senior Unsecured Credit Facility
Deutsche Bank AG New York Branch
$300 Million Revolver		2.27% Variable	n/a	March 31, 2020	n/a	$	50,000		$	—
$150 Million Term Loan	(1)	2.86% Variable	n/a	March 31, 2021	n/a	150,000			—
Total Senior Unsecured Credit Facility						200,000			—
$300 Million Senior Unsecured Credit Facility
Deutsche Bank AG New York Branch
$225 Million Revolver		n/a	n/a	October 10, 2017	n/a	$	—		$	95,000
$75 Million Term Loan		n/a	n/a	October 10, 2018	n/a	—			75,000
Total Former Unsecured Credit Facility						—			170,000
Unsecured Term Loan
KeyBank National Association, as Administrative Agent
Term Loan		2.57% Variable	n/a	April 7, 2022	n/a	140,000			140,000
Secured Mortgage Indebtedness
Voya (formerly ING Life Insurance and Annuity)	(2)	5.18% Fixed	20	March 1, 2019	2	41,328			42,574
	(2)	5.18% Fixed	20	March 1, 2019	4	37,042			38,159
	(2)	5.18% Fixed	20	March 1, 2019	3	23,889			24,610
	(2)	5.18% Fixed	20	March 1, 2019	1	16,970			17,482
KeyBank National Association	(3)	4.46% Fixed	30	February 1, 2023	4	27,473			27,991
	(4)	4.52% Fixed	30	April 1, 2023	3	21,291			21,683
	(5)	4.30% Fixed	30	April 1, 2023	3	20,626			21,022
	(6)	4.95% Fixed	30	August 1, 2023	2	36,741			37,352
Bank of America Commercial Mortgage	(7)	6.41% Fixed	25	September 1, 2017	1	7,661			7,916
Merrill Lynch Mortgage Lending Inc.	(8)	n/a	30	August 1, 2016	n/a	—			5,047
Western Alliance Bank (formerly GE Capital Financial Inc.)	(9)	5.39% Fixed	25	April 1, 2020	1	8,912			9,110
	(9)	5.39% Fixed	25	April 1, 2020	1	4,798			4,905
MetaBank	(10)	4.25% Fixed	20	August 1, 2018	1	6,588			6,852
Bank of Cascades	(11)	2.77% Variable	25	December 19, 2024	1	9,289			9,556
	(11)	4.30% Fixed	25	December 19, 2024	—	9,289			9,556
Goldman Sachs	(12)	n/a	25	July 6, 2016	n/a	—			13,467
Compass Bank	(13)	3.17% Variable	25	May 6, 2020	3	23,394			24,015
Western Alliance Bank (formerly GE Capital Corp)	(14)	5.39% Fixed	25	April 1, 2020	1	5,910			5,160
	(14)	5.39% Fixed	25	April 1, 2020	1	5,046			6,041
	(15)	n/a	20	April 1, 2018	n/a	—			5,852
U.S. Bank, NA	(16)	n/a	30	November 1, 2016	n/a	—			17,179
	(17)	6.13% Fixed	25	November 11, 2021	1	11,303			11,567
Total Mortgage Loans					33	317,550			367,096
Total Debt						657,550			677,096
Unamortized debt issuance costs						(5,136		)	(5,560		)
Debt, net of issuance costs						$	652,414		$	671,536

(1) Our interest rate swap fixed a portion of the interest on this loan. See "Note 6 - Derivative Financial Instruments and Hedging."

(2) On September 24, 2015, we modified an existing term loan collateralized by properties sold in 2015 to substitute collateral with properties not included in the sale in order to avoid significant yield maintenance costs associated with an early pay-off. We now have four term loans with Voya with an aggregate principal amount of $119.2 million, fixed interest rates of 5.18%, and a first call date of March 1, 2019. The ten hotel properties encumbered by the Voya mortgage loans are cross-collateralized, and the four mortgage loans are cross-defaulted.

(3) On January 25, 2013, we closed on a $29.4 million loan with a fixed rate of 4.46% and a maturity of February 1, 2023. This loan is secured by four of the Hyatt Place hotels we acquired in October 2012. These hotels are located in Chicago (Lombard), IL; Denver (Lone Tree), CO; Denver (Englewood), CO; and Dallas (Arlington), TX.  This loan is subject to defeasance if prepaid.

(4) On March 7, 2013, we closed on a $22.7 million loan with a fixed rate of 4.52% and a maturity of April 1, 2023. This loan is secured by three of the Hyatt hotels we acquired in October 2012. These hotels include a Hyatt House in Denver (Englewood), CO and Hyatt Place hotels in Baltimore (Owings Mills), MD and Scottsdale, AZ.  This loan is subject to defeasance if prepaid.

(5) On March 8, 2013, we closed on a $22.0 million loan with a fixed rate of 4.30% and a maturity of April 1, 2023. This loan is secured by the three Hyatt Place hotels we acquired in January 2013. These hotels are located in Chicago (Hoffman Estates), IL; Orlando (Convention), FL; and Orlando (Universal), FL. This loan is subject to defeasance if prepaid.

(6) On July 22, 2013, we closed on a $38.7 million loan with a fixed rate of 4.95% and a maturity of August 1, 2023. This loan is secured by two Marriott hotels we acquired in May 2013. These hotels include a Fairfield Inn & Suites and SpringHill Suites in Louisville, KY. This loan is subject to defeasance if prepaid.

(7) On May 16, 2012, we assumed a loan in our acquisition of the Hilton Garden Inn in Smyrna, TN. This loan is subject to defeasance if prepaid.

(8) On June 21, 2012, we assumed a loan in our acquisition of the Hampton Inn & Suites in Smyrna, TN. This loan was repaid in 2016. There were no prepayment penalties incurred in this transaction.

(9) On March 28, 2014, we amended the loans with GE Capital Financial, which are cross-collateralized by the Courtyard by Marriott and the SpringHill Suites by Marriott, both located in Scottsdale, AZ. The loans were amended to bear interest at a fixed rate of 5.39% and the maturity dates were extended to April 1, 2020.

(10) On July 26, 2013, we closed on a $7.4 million loan with a fixed rate of 4.25% and a maturity of August 1, 2018. This loan is secured by the Hyatt Place in Atlanta, GA. This loan has a prepayment penalty of: (i ) 3% until July 26, 2015, (ii) 2% until July 26, 2017, and (iii) 1% until February 1, 2018.

(11) On December 19, 2014, we refinanced our loan with Bank of the Cascades and increased the amount financed by $7.9 million.  As part of the refinance the loan was split into two notes. Note A carries a variable interest rate of 30-day LIBOR plus 200 basis points and Note B carries a fixed interest rate of 4.3%. Both notes have amortization periods of 25 years and maturity dates of December 19, 2024. The Bank of Cascades mortgage loans are secured by the same collateral and cross-defaulted.

(12) This loan was secured by the SpringHill Suites by Marriott and the Hampton Inn & Suites in Bloomington, MN. This loan was repaid in 2016. There were no prepayment penalties incurred in this transaction.

(13) On May 6, 2014, we closed on a $25.0 million loan with Compass Bank. The loan carries a variable rate of 30-day LIBOR plus 240 basis points, amortizes over 25 years, and has a May 6, 2020 maturity date. The loan is secured by first mortgage liens on the Hampton Inn & Suites hotels located in San Diego (Poway), CA, Ventura (Camarillo), CA and Fort Worth, TX.

(14) On March 28, 2014, we amended two loans with General Electric Capital Corp., which are cross - collateralized by the Hilton Garden Inn (Lakeshore) and the Hilton Garden Inn (Liberty Park), both located in Birmingham, AL. Both loans were amended to bear interest at a fixed rate of 5.39% and the maturity dates were extended to April 1, 2020.

(15) This loan was secured by the SpringHill Suites by Marriott in Denver, CO.  In anticipation of the ARCH Second Closing the interest rate swap was settled in 2015. This loan was repaid in 2016.  There were no prepayment penalties incurred in this transaction.

(16) On January 9, 2014, as part of our acquisition of the 182-guestroom Hilton Garden Inn in Houston, TX, we assumed a $17.8 million mortgage loan with a fixed interest rate of 6.22%, an amortization period of 30 years, and a maturity date of November 1, 2016. This loan was repaid in 2016. There were no prepayment penalties incurred in this transaction.

(17) On January 10, 2014, as part of our acquisition of the 98-guestroom Hampton Inn in Santa Barbara (Goleta), CA, we assumed a $12.0 million mortgage loan with a fixed interest rate of 6.133%, an amortization period of 25 years, and a maturity date of November 11, 2021.

Schedule of total fixed-rate and variable-rate debt, after giving effect to interest rate derivatives

Our total fixed-rate and variable-rate debt at December 31, 2016 and 2015, after giving effect to our $75.0 million interest rate derivative, is as follows (in thousands): 

	2016		2015
Fixed-rate debt	$	359,867	$	402,673
Variable-rate debt	297,683		274,423
	$	657,550	$	677,096

Schedule of principal payments for each of the next five years

Principal payments for each of the next five years are as follows (in thousands): 

2017	$	15,828
2018	14,557
2019	166,136
2020	197,049
2021	13,017
Thereafter	250,963
	$	657,550

Schedule of the fair value of fixed-rate debt that is not recorded at fair value

Information about the fair value of our fixed-rate debt that is not recorded at fair value is as follows (in thousands): 

	2016				2015
	Carrying Value		Fair Value		Carrying Value		Fair Value		Valuation Technique
Fixed-rate debt	$	284,867	$	283,416	$	327,673	$	321,841	Level 2 - Market approach