DEBT (Tables)

12 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Schedule of outstanding indebtedness

At December 31, 2018 and 2017 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,
					12/31/2018	2018			2017
$600 Million Senior Unsecured Credit and Term Loan Facility
Deutsche Bank AG New York Branch
$400 Million Revolver		4.15% Variable	n/a	March 31, 2023	n/a	$	115,000		$	—
$200 Million Term Loan		4.10% Variable	n/a	April 1, 2024	n/a	200,000			—
Total Senior Unsecured Credit and Term Loan Facility						315,000			—
$450 Million Senior Unsecured Credit and Term Loan Facility
Deutsche Bank AG New York Branch
$300 Million Revolver		n/a	n/a	March 31, 2020	n/a	$	—		$	15,000
$150 Million Term Loan		n/a	n/a	March 31, 2021	n/a	—			150,000
Total Senior Unsecured Credit and Term Loan Facility						—			165,000
Unsecured Term Loan
Term Loan (KeyBank National Association, as Administrative Agent)		n/a	n/a	April 7, 2022	n/a	—			140,000
Term Loan (KeyBank National Association, as Administrative Agent)		4.10% Variable	n/a	November 25, 2022	n/a	225,000			225,000
Term Loan (KeyBank National Association, as Administrative Agent)		4.40% Variable	n/a	February 14, 2025	n/a	225,000			—
Secured Mortgage Indebtedness
Voya	(1)	n/a	n/a	March 1, 2019	n/a	—			40,015
	(1)	n/a	n/a	March 1, 2019	n/a	—			35,865
	(1)	n/a	n/a	March 1, 2019	n/a	—			23,130
	(1)	n/a	n/a	March 1, 2019	n/a	—			16,431
KeyBank National Association	(2)	4.46% Fixed	30	February 1, 2023	4	26,357			26,928
	(3)	4.52% Fixed	30	April 1, 2023	3	20,444			20,877
	(4)	4.30% Fixed	30	April 1, 2023	4	19,777			20,211
	(5)	4.95% Fixed	30	August 1, 2023	2	35,411			36,093
Western Alliance Bank	(6)	n/a	25	April 1, 2020	n/a	—			8,701
	(6)	n/a	25	April 1, 2020	n/a	—			4,685
MetaBank	(7)	4.44% Fixed	25	July 1, 2027	3	47,640			47,640
Bank of Cascades	(8)	4.50% Variable	25	December 19, 2024	1	8,757			9,023
	(8)	4.30% Fixed	25	December 19, 2024	—	8,757			9,023
Compass Bank	(9)	4.90% Variable	25	May 6, 2020	3	22,151			22,773
Western Alliance Bank	(6)	n/a	25	April 1, 2020	n/a	—			5,769
	(6)	n/a	25	April 1, 2020	n/a	—			4,926
U.S. Bank, NA	(10)	6.13% Fixed	25	November 11, 2021	1	10,717			11,019
Total Mortgage Loans					21	200,011			343,109
Total Debt						965,011			873,109
Unamortized debt issuance costs						(6,299		)	(4,873		)
Debt, net of issuance costs						$	958,712		$	868,236

(1) The four Voya term loans were repaid in 2018. There were no prepayment penalties incurred in these transactions.

(2) 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.

(3) 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.

(4) 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.

(5) 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.

(6) The Western Alliance Bank loans were repaid in 2018. There were no prepayment penalties incurred in these transactions.

(7) 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.

(8) 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.

(9) 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.

(10) 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, 2018 and 2017, after giving effect to our interest rate derivatives, is as follows (in thousands): 

	2018		Percentage		2017		Percentage
Fixed-rate debt	$	569,103	59	%	$	386,313	44	%
Variable-rate debt	395,908		41	%	486,796		56	%
	$	965,011			$	873,109

Schedule of principal payments for each of the next five years

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

2019	$	4,647
2020	25,788
2021	14,151
2022	229,264
2023	209,238
Thereafter	481,923
	$	965,011

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): 

	2018				2017
	Carrying Value		Fair Value		Carrying Value		Fair Value		Valuation Technique
Fixed-rate debt	$	169,103	$	166,256	$	311,313	$	310,535	Level 2 - Market approach