DEBT (Tables)

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Schedule of outstanding indebtedness

At December 31, 2021 and 2020 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,
					12/31/2021	2021		2020
$600 Million Senior Credit and Term Loan Facility (1)
Deutsche Bank AG New York Branch
$400 Million Revolver		2.65% Variable	n/a	March 31, 2023	n/a	$	—	$	155,000
$200 Million Term Loan		2.60% Variable	n/a	April 1, 2024	n/a	200,000		200,000
Total Senior Credit and Term Loan Facility						200,000		355,000
Joint Venture Credit Facility (2)
Bank of America, N.A.
$125 Million Revolver		2.55% Variable	n/a	October 8, 2023	n/a	68,500		67,500
$75 Million Term Loan		2.50% Variable	n/a	October 8, 2023	n/a	75,000		75,000
Total Joint Venture Credit Facility						143,500		142,500
Term Loans (1)
Term Loan (KeyBank National Association, as Administrative Agent)		2.70% Variable	n/a	November 25, 2022	n/a	62,000		225,000
Term Loan (KeyBank National Association, as Administrative Agent)		2.40% Variable	n/a	February 14, 2025	n/a	225,000		225,000
Convertible Notes		1.50% Fixed	n/a	February 15, 2026	n/a	287,500		—
Secured Mortgage Indebtedness
KeyBank National Association	(3)	4.46% Fixed	30	February 1, 2023	3	18,545		19,039
	(4)	4.52% Fixed	30	April 1, 2023	3	19,024		19,520
	(5)	4.30% Fixed	30	April 1, 2023	3	18,358		18,852
	(6)	4.95% Fixed	30	August 1, 2023	2	33,155		33,947
MetaBank	(7)	4.44% Fixed	25	July 1, 2027	3	45,070		46,172
Bank of Cascades	(8)	2.10% Variable	25	December 19, 2024	1	7,957		8,224
	(8)	4.30% Fixed	25	December 19, 2024	—	7,957		8,224
Wells Fargo	(9)	4.99% Fixed	30	June 6, 2028	1	13,249		—
Total Mortgage Loans					16	163,315		153,978
Total Debt						1,081,315		1,101,478
Unamortized debt issuance costs						(11,518)		(6,733)
Debt, net of issuance costs						$	1,069,797	$	1,094,745

(1) The $600 million Senior Revolving Credit and Term Loan Facility and Term Loans are supported by a borrowing base of 46 unencumbered hotel properties and a pledge of the equity securities of the entities that own the 46 properties and their affiliates.

(2) The Joint Venture Credit Facility is secured by pledges of the equity in the entities (and affiliated entities) that own the borrowing base hotels.

(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 three of the Hyatt Place hotels we acquired in October 2012. These hotels are located in Chicago (Lombard), IL; Denver (Lone Tree), CO; and Denver (Englewood), CO.  This loan is subject to defeasance costs if prepaid. On March 19, 2019, we defeased $6.3 million of the principal balance to have the encumbrance released on one property, the Hyatt Place in Arlington, TX, to facilitate the sale of the property. As a result of this transaction, we recorded debt transaction costs of $0.6 million in 2019 primarily related to the debt defeasance premium.

(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 June 30, 2017, we entered into the MetaBank Loan. The MetaBank Loan is secured by the Hampton Inn & Suites in Minneapolis, MN, 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 loan is comprised of two promissory notes that are secured by the same collateral and cross-defaulted.

(9) On December 21, 2021, we assumed a $13.3 million loan with a fixed rate of 4.99% and a maturity of June 6, 2028. This loan is secured by the Embassy Suites by Hilton in Tucson, AZ. This loan is subject to defeasance if prepaid.

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, 2021 and 2020, after giving effect to our interest rate derivatives, is as follows (in thousands): 

	2021		Percentage		2020		Percentage
Fixed-rate debt	$	842,858	78	%	$	545,754	50	%
Variable-rate debt	238,457		22	%	555,724		50	%
	$	1,081,315			$	1,101,478

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): 

2022	$	66,308
2023	232,183
2024	216,365
2025	226,594
2026	289,169
Thereafter	50,696
	$	1,081,315

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): 

	2021				2020
	Carrying Value		Fair Value		Carrying Value		Fair Value		Valuation Technique
Convertible notes	$	287,500	$	300,384	$	—	$	—	Level 1 - Market approach
Fixed-rate debt	155,358		155,765		145,754		143,244		Level 2 - Market approach
	$	442,858	$	456,149	$	145,754	$	143,244