Debt

Credit Facility and Term Loans

The Company has the following unsecured credit agreements in place:


•	$300.0 million revolving credit facility with a scheduled maturity date of November 20, 2016 with a one-year extension option if certain conditions are satisfied (the "Revolver");


•	$400.0 million term loan with a scheduled maturity date of August 27, 2018 (the "2013 Five-Year Term Loan");


•	$400.0 million term loan with a scheduled maturity date of March 20, 2019 (which was originally scheduled to mature in 2017) (the "2012 Five-Year Term Loan");


•	$225.0 million term loan with a scheduled maturity date of November 20, 2019 (the "2012 Seven-Year Term Loan"); and


•	$150.0 million term loan with a scheduled maturity date of January 22, 2022 (the "2014 Seven-Year Term Loan").

The 2012 Five-Year Term Loan, the 2012 Seven-Year Term Loan, the 2013 Five-Year Term Loan and the 2014 Seven-Year Term loan are collectively the "Term Loans". The Revolver and Term Loans are subject to customary financial covenants. As of March 31, 2016, the Company was in compliance with all financial covenants.

As of March 31, 2016 and December 31, 2015, the details of the credit facilities were as follows (in thousands):



			Outstanding Borrowings at
	Interest Rate at March 31, 2016 (1)	Maturity Date	March 31, 2016			December 31, 2015
Revolver (2)	2.19%	November 2016	$	—		$	—
2013 Five-Year Term Loan	3.10%	August 2018	400,000			400,000
2012 Five-Year Term Loan	2.72%	March 2019	400,000			400,000
2012 Seven-Year Term Loan	4.04%	November 2019	225,000			225,000
2014 Seven-Year Term Loan	3.43%	January 2022	150,000			150,000
			1,175,000			1,175,000
Deferred financing costs, net (3)			(5,160		)	(5,563		)
Total			$	1,169,840		$	1,169,437


(1)	Interest rate at March 31, 2016 gives effect to interest rate hedges.


(2)	At March 31, 2016 and December 31, 2015, there was $300.0 million of borrowing capacity on the Revolver.


(3)	Excludes $0.6 million and $0.8 million as of March 31, 2016 and December 31, 2015, respectively, related to deferred financing costs on the revolving credit facility, which is included in prepaid expense and other assets in the accompanying consolidated balance sheets.

Mortgage Loans

As of March 31, 2016 and December 31, 2015, the Company was subject to the following mortgage loans (in thousands):



						Principal balance at
Lender	Number of Assets Encumbered	Interest Rate at March 31, 2016 (1)		Maturity Date		March 31, 2016			December 31, 2015
Wells Fargo	4	3.99%	(2)	October 2017	(3)	$	150,000		$	150,000
Wells Fargo (4)	4	4.04%		March 2018	(3)	148,500			149,250
PNC Bank (5)	5	2.54%	(2)	March 2021	(6)	85,000			74,000
Wells Fargo (7)	1	5.25%		June 2022		34,272			34,505
						417,772			407,755
Deferred financing costs, net						(2,226		)	(1,706		)
Total	14					$	415,546		$	406,049


(1)	Interest rate at March 31, 2016 gives effect to interest rate hedges.


(2)	Requires payments of interest only until the commencement of the extension period(s).


(3)	Maturity date may be extended for four one-year terms at the Company’s option, subject to certain lender requirements.


(4)	Two of the four hotels encumbered by the Wells Fargo loan are cross-collateralized.


(5)	The five hotels encumbered by the PNC Bank loan are cross-collateralized.


(6)	Maturity date may be extended for two one-year terms at the Company’s option, subject to certain lender requirements.


(7)	Includes $1.2 million at March 31, 2016 and December 31, 2015 related to a fair value adjustment of $1.3 million on mortgage debt assumed in conjunction with an acquisition, net of accumulated amortization of $0.1 million.

Certain mortgage agreements are subject to customary financial covenants. The Company was in compliance with these covenants at March 31, 2016 and December 31, 2015.

Interest Expense

For the three months ended March 31, 2016 and 2015, the components of our interest expense were as follows (in thousands):



	For the three months ended March 31,
	2016		2015
Mortgage indebtedness	$	4,020	$	5,164
Revolving credit facility and term loans	9,859		7,889
Amortization of deferred financing costs	1,013		1,031
Capitalized interest	—		(576		)
Total interest expense	$	14,892	$	13,508