Debt

Revolver and Term Loans

The Company has the following unsecured credit agreements in place:


•	$400.0 million revolving credit facility with a scheduled maturity date of April 22, 2020 with a one-year extension option if certain conditions are satisfied (the "Revolver");


•	$400.0 million term loan with a scheduled maturity date of March 20, 2019 (which was originally scheduled to mature in 2017) (the "$400 Million Term Loan Maturing 2019"). This term loan was referred to as the 2012 Five-Year Term Loan in previous periodic filings;


•	$225.0 million term loan with a scheduled maturity date of November 20, 2019 (the "$225 Million Term Loan Maturing 2019"). This term loan was referred to as the 2012 Seven-Year Term Loan in previous periodic filings;


•	$400.0 million term loan with a scheduled maturity date of April 22, 2021 (the "$400 Million Term Loan Maturing 2021"). This term loan was referred to as the 2013 Five-Year Term Loan in previous periodic filings; and


•	$150.0 million term loan with a scheduled maturity date of January 22, 2022 (the "$150 Million Term Loan Maturing 2022"). This term loan was referred to as the 2014 Seven-Year Term Loan in previous periodic filings.

The $400 Million Term Loan Maturing 2019, the $225 Million Term Loan Maturing 2019, the $400 Million Term Loan Maturing 2021, and the $150 Million Term Loan Maturing 2022 are collectively the "Term Loans". The Revolver and Term Loans are subject to customary financial covenants. As of June 30, 2016 and December 31, 2015, the Company was in compliance with all financial covenants.

As of June 30, 2016 and December 31, 2015, the details of the unsecured credit agreements were as follows (in thousands):



			Outstanding Borrowings at
	Interest Rate at June 30, 2016 (1)	Maturity Date	June 30, 2016			December 31, 2015
Revolver (2)	1.97%	April 2020	$	—		$	—
$400 Million Term Loan Maturing 2019	2.72%	March 2019	400,000			400,000
$225 Million Term Loan Maturing 2019	4.04%	November 2019	225,000			225,000
$400 Million Term Loan Maturing 2021	2.91%	April 2021	400,000			400,000
$150 Million Term Loan Maturing 2022	3.43%	January 2022	150,000			150,000
			1,175,000			1,175,000
Deferred financing costs, net (3)			(6,561		)	(5,563		)
Total			$	1,168,439		$	1,169,437


(1)	Interest rate at June 30, 2016 gives effect to interest rate hedges.


(2)	At June 30, 2016 and December 31, 2015, there was $400.0 million and $300.0 million of borrowing capacity on the Revolver, respectively.


(3)	Excludes $2.7 million and $0.8 million as of June 30, 2016 and December 31, 2015, respectively, related to deferred financing costs on the Revolver, which are included in prepaid expense and other assets in the accompanying consolidated balance sheets.

Mortgage Loans

As of June 30, 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 June 30, 2016 (1)		Maturity Date		June 30, 2016			December 31, 2015
Wells Fargo	4	4.00%	(2)	October 2017	(3)	$	150,000		$	150,000
Wells Fargo (4)	4	4.04%		March 2018	(3)	147,750			149,250
PNC Bank (5)	5	2.57%	(2)	March 2021	(6)	85,000			74,000
Wells Fargo (7)	1	5.25%		June 2022		34,040			34,505
						416,790			407,755
Deferred financing costs, net						(1,990		)	(1,706		)
Total	14					$	414,800		$	406,049


(1)	Interest rate at June 30, 2016 gives effect to interest rate hedges.


(2)	Requires payments of interest only through maturity.


(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 $1.1 million and $1.2 million at June 30, 2016 and December 31, 2015, respectively, related to a fair value adjustment of $1.3 million on mortgage debt assumed in conjunction with an acquisition, net of accumulated amortization of $0.2 million and $0.1 million at June 30, 2016 and December 31, 2015, respectively.

Certain mortgage agreements are subject to customary financial covenants. The Company was in compliance with these covenants at June 30, 2016 and December 31, 2015.

Interest Expense

For the three and six months ended June 30, 2016 and 2015, the components of our interest expense were as follows (in thousands):



	For the three months ended June 30,					For the six months ended June 30,
	2016		2015			2016		2015
Mortgage indebtedness	$	3,963	$	3,673		$	7,983	$	8,836
Revolver and Term Loans	9,617		8,294			19,476		16,183
Amortization of deferred financing costs	1,209		1,024			2,222		2,056
Capitalized interest	—		(656		)	—		(1,232		)
Total interest expense	$	14,789	$	12,335		$	29,681	$	25,843