Debt (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Long-term Debt Instruments [Table Text Block]

The Company's debt consisted of the following (in thousands):



	December 31, 2018		December 31, 2017
Senior Notes	$	505,322	$	1,062,716
Revolver and Term Loans, net	1,169,165		1,170,954
Mortgage loans, net	528,189		646,818
Debt, net	$	2,202,676	$	2,880,488

Schedule of unsecured credit agreements

The Company's unsecured credit agreements consisted of the following (in thousands):



			Outstanding Borrowings at
	Interest Rate at December 31, 2018 (1)	Maturity Date	December 31, 2018			December 31, 2017
Revolver (2)	4.00%	April 2020	$	—		$	—
$400 Million Term Loan Maturing 2021	3.11%	April 2021	400,000			400,000
$150 Million Term Loan Maturing 2022	3.08%	January 2022	150,000			150,000
$400 Million Term Loan Maturing 2023	3.22%	January 2023	400,000			400,000
$225 Million Term Loan Maturing 2023	3.44%	January 2023	225,000			225,000
			1,175,000			1,175,000
Deferred financing costs, net (3)			(5,835		)	(4,046		)
Total Revolver and Term Loans, net			$	1,169,165		$	1,170,954


(1)	Interest rate at December 31, 2018 gives effect to interest rate hedges.


(2)	At both December 31, 2018 and 2017, there was $600.0 million of borrowing capacity on the Revolver. The Company has the ability to further increase the borrowing capacity to $750.0 million, subject to certain lender requirements.


(3)	Excludes $1.5 million and $2.6 million as of December 31, 2018 and 2017, respectively, related to deferred financing costs on the Revolver, which are included in prepaid expense and other assets in the accompanying consolidated balance sheets.

Schedule of mortgage loans

he Company's mortgage loans consisted of the following (in thousands):



					Principal balance at
	Number of Assets Encumbered	Interest Rate at December 31, 2018 (1)	Maturity Date		December 31, 2018			December 31, 2017
Mortgage loan (5)	4	4.05%	March 2019	(3)	$	140,250		$	143,250
Mortgage loan (2)	4	4.09%	October 2019	(4)	150,000			150,000
Mortgage loan (2) (6)	5	4.60%	March 2021	(7)	85,000			85,000
Mortgage loan (8)	1	5.25%	June 2022		32,066			32,882
Mortgage loan (9)	3	4.95%	October 2022		91,737			120,893
Mortgage loan (10)	1	4.94%	October 2022		29,569			30,323
Mortgage loan (2) (11)	—	—	—	(12)	—			85,404
	18				528,622			647,752
Deferred financing costs, net					(433		)	(934		)
Total mortgage loans, net					$	528,189		$	646,818


(1)	Interest rate at December 31, 2018 gives effect to interest rate hedges.


(2)	Requires payments of interest only through maturity.


(3)	In March 2018, the Company extended the maturity date for a one-year term. The maturity date may be extended for three additional one-year terms at the Company’s option, subject to certain lender requirements.


(4)	In October 2018, the Company extended the maturity date for a one-year term. The maturity date may be extended for two additional one-year terms at the Company's option, subject to certain lender requirements.


(5)	Two of the four hotels encumbered by the mortgage loan are cross-collateralized.


(6)	The five hotels encumbered by the mortgage loan are cross-collateralized.


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


(8)	Includes $0.6 million and $0.8 million at December 31, 2018 and 2017, respectively, related to a fair value adjustment on the mortgage loan that was assumed in conjunction with an acquisition.


(9)	Includes $1.9 million and $3.0 million at December 31, 2018 and 2017, respectively, related to fair value adjustments on the mortgage loans that were assumed in the Mergers.


(10)	Includes $0.6 million and $0.7 million at December 31, 2018 and 2017, respectively, related to a fair value adjustment on the mortgage loan that was assumed in the Mergers.


(11)	Includes $0.4 million at December 31, 2017 related to a fair value adjustment on the mortgage loan that was assumed in the Mergers.


(12)	On November 5, 2018, the Company paid off the mortgage loan in full.

Components of interest expense

The components of the Company's interest expense consisted of the following (in thousands):



	For the year ended December 31,
	2018		2017		2016
Senior Notes	$	28,428	$	15,918	$	—
Revolver and Term Loans	43,458		39,262		38,849
Mortgage loans	26,253		19,643		16,006
Amortization of deferred financing costs	3,504		3,499		3,965
Total interest expense	$	101,643	$	78,322	$	58,820

Future minimum principal payments

As of December 31, 2018, the future minimum principal payments were as follows (in thousands):



2019	$	293,217
2020	3,361
2021	488,557
2022	290,386
2023	625,000
Thereafter	475,000
Total (1)	$	2,175,521


(1)	Excludes a total of $33.4 million related to fair value adjustments on debt.

Schedule of Senior Notes [Table Text Block]

The Company's senior secured notes and the senior unsecured notes are collectively the "Senior Notes". The Company's Senior Notes consisted of the following (in thousands):



				Outstanding Borrowings at
	Number of Assets Encumbered	Interest Rate	Maturity Date	December 31, 2018		December 31, 2017
Senior secured notes (1) (2) (3)	—	5.63%	—	$	—	$	552,669
Senior unsecured notes (1) (2) (4)	—	6.00%	June 2025	505,322		510,047
Total Senior Notes				$	505,322	$	1,062,716


(1)	Requires payments of interest only through maturity.


(2)	The senior secured notes include $28.7 million at December 31, 2017, and the senior unsecured notes include $30.3 million and $35.1 million at December 31, 2018 and 2017, respectively, related to fair value adjustments on the Senior Notes that were assumed in the Mergers.

(3)

On March 9, 2018, the Company completed the early redemption of the senior secured notes in full for an aggregate amount of approximately $539.0 million, which included the redemption price of 102.813% for the outstanding principal amount. The Company recognized a gain of approximately $7.7 million on the early redemption, which is included in gain on extinguishment of indebtedness, net in the accompanying consolidated statements of operations and comprehensive income. The gain on extinguishment of indebtedness excludes $5.1 million related to two hotel properties that were sold during the year ended December 31, 2018 that is included in gain on sale of hotel properties, net in the accompanying consolidated statement of operations and comprehensive income.


(4)	The Company has the option to redeem the senior unsecured notes beginning June 1, 2020 at a price of 103.0% of face value.

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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+ Details