DEBT (Tables)

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Schedule of outstanding indebtedness

At December 31, 2017 and 2016 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,
					12/31/2017	2017			2016
$450 Million Senior Unsecured Credit and Term Loan Facility
Deutsche Bank AG New York Branch
$300 Million Revolver		3.21% Variable	n/a	March 31, 2020	n/a	$	15,000		$	50,000
$150 Million Term Loan	(1)	3.40% Variable	n/a	March 31, 2021	n/a	150,000			150,000
Total Senior Unsecured Credit and Term Loan Facility						165,000			200,000
Unsecured Term Loan
KeyBank National Association, as Administrative Agent
Term Loan		3.51% Variable	n/a	April 7, 2022	n/a	140,000			140,000
KeyBank National Association, as Administrative Agent
Term Loan		3.11% Variable	n/a	November 25, 2022	n/a	225,000			—
Secured Mortgage Indebtedness
Voya	(2)	5.18% Fixed	20	March 1, 2019	2	40,015			41,328
	(2)	5.18% Fixed	20	March 1, 2019	4	35,865			37,042
	(2)	5.18% Fixed	20	March 1, 2019	2	23,130			23,889
	(2)	5.18% Fixed	20	March 1, 2019	1	16,431			16,970
KeyBank National Association	(3)	4.46% Fixed	30	February 1, 2023	4	26,928			27,473
	(4)	4.52% Fixed	30	April 1, 2023	3	20,877			21,291
	(5)	4.30% Fixed	30	April 1, 2023	3	20,211			20,626
	(6)	4.95% Fixed	30	August 1, 2023	2	36,093			36,741
Bank of America Commercial Mortgage	(7)	6.41% Fixed	25	September 1, 2017	—	—			7,661
Western Alliance Bank	(8)	5.39% Fixed	25	April 1, 2020	1	8,701			8,912
	(8)	5.39% Fixed	25	April 1, 2020	1	4,685			4,798
MetaBank	(9)	4.25% Fixed	20	August 1, 2018	—	—			6,588
	(10)	4.44% Fixed	25	July 1, 2027	3	47,640			—
Bank of Cascades	(11)	3.56% Variable	25	December 19, 2024	1	9,023			9,289
	(11)	4.30% Fixed	25	December 19, 2024	—	9,023			9,289
Compass Bank	(12)	3.96% Variable	25	May 6, 2020	3	22,773			23,394
Western Alliance Bank	(13)	5.39% Fixed	25	April 1, 2020	1	5,769			5,910
	(13)	5.39% Fixed	25	April 1, 2020	1	4,926			5,046
U.S. Bank, NA	(14)	6.13% Fixed	25	November 11, 2021	1	11,019			11,303
Total Mortgage Loans					33	343,109			317,550
Total Debt						873,109			657,550
Unamortized debt issuance costs						(4,873		)	(5,136		)
Debt, net of issuance costs						$	868,236		$	652,414

(1) An interest rate swap fixed a portion of the interest rate 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 $115.4 million, fixed interest rates of 5.18%, and a first call date of March 1, 2019. The nine 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 was repaid in 2017. There were no prepayment penalties incurred in this transaction.

(8) On March 28, 2014, we amended the loans with Western Alliance Bank, 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.

(9) 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. This loan was repaid in 2017. There were prepayment penalties of $0.1 million related to the early repayment of this loan.

(10) On June 30, 2017, we entered into the MetaBank Loan. The MetaBank Loan provides for a fixed interest rate of 4.44% and interest only payments for 18 months following the closing date. After this 18 month period, the loan is amortized on a 25-year amortization schedule through the maturity date of July 1, 2027. The MetaBank Loan is secured by the Residence Inn in Salt Lake City, UT, the Four Points by Sheraton Hotel & Suites in South San Francisco, CA, and the Hyatt Place in Mesa, AZ. The MetaBank Loan is subject to a prepayment penalty if prepaid prior to April 1, 2027.

(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) 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 and Ventura (Camarillo), CA and the Courtyard by Marriott located in Arlington, TX.

(13) On March 28, 2014, we amended two loans with Western Alliance Bank, 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.

(14) 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, 2017 and 2016, after giving effect to our $75.0 million interest rate derivative, is as follows (in thousands): 

	2017		2016
Fixed-rate debt	$	386,313	$	359,867
Variable-rate debt	486,796		297,683
	$	873,109	$	657,550

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): 

2018	$	8,154
2019	116,978
2020	63,489
2021	164,155
2022	369,269
Thereafter	151,064
	$	873,109

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): 

	2017				2016
	Carrying Value		Fair Value		Carrying Value		Fair Value		Valuation Technique
Fixed-rate debt	$	311,313	$	310,535	$	284,867	$	283,416	Level 2 - Market approach