Debt (Tables)

6 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

Schedule of Debt

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

	June 30, 2020		December 31, 2019
Senior Notes	$	498,122	$	500,484
Revolver and Term Loans, net	1,568,498		1,168,793
Mortgage loans, net	525,054		526,430
Debt, net	$	2,591,674	$	2,195,707

Schedule Of Debt Instrument Covenants

The Revolver and Term Loans are subject to various financial covenants. A summary of the most restrictive covenants is as follows:

	Covenant	Compliance
Leverage ratio (1)	<= 7.00x	N/A (3)
Fixed charge coverage ratio (2)	>= 1.50x	N/A (3)
Secured indebtedness ratio	<= 45.0%	N/A (3)
Unencumbered indebtedness ratio	<= 60.0%	N/A (3)
Unencumbered debt service coverage ratio	>= 2.00x	N/A (3)
Maintain minimum liquidity level	>= $125.0 million	Yes

(1)Leverage ratio is net indebtedness, as defined in the Revolver and Term Loan agreements, to corporate earnings before interest, taxes, depreciation, and amortization ("EBITDA"), as defined in the Revolver and Term Loan agreements.

(2)Fixed charge coverage ratio is Adjusted EBITDA, generally defined in the Revolver and Term Loan agreements as EBITDA less furniture, fixtures and equipment ("FF&E") reserves, to fixed charges, which is generally defined in the Revolver and Term Loan agreements as interest expense, all regularly scheduled principal payments, preferred dividends paid, and cash taxes paid.

(3)The Company received a waiver for this covenant, see details below.

Schedule of Revolver and Term Loans

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

			Outstanding Borrowings at
	Interest Rate at June 30, 2020 (1)	Maturity Date	June 30, 2020		December 31, 2019
Revolver (2)	3.76%	May 2024	$	400,000	$	—
$150 Million Term Loan Maturing 2022	3.88%	January 2022	150,000		150,000
$400 Million Term Loan Maturing 2023	4.58%	January 2023	400,000		400,000
$225 Million Term Loan Maturing 2023	4.58%	January 2023	225,000		225,000
$400 Million Term Loan Maturing 2025	3.77%	May 2025	400,000		400,000
			1,575,000		1,175,000
Deferred financing costs, net (3)			(6,502)		(6,207)
Total Revolver and Term Loans, net			$	1,568,498	$	1,168,793

(1)Interest rate at June 30, 2020 gives effect to interest rate hedges.

(2)At June 30, 2020 and December 31, 2019, there was $200.0 million and $600.0 million, respectively, undrawn on the Revolver. The Company also has the ability to extend the maturity date for an additional one year period ending May 2025 if certain conditions are satisfied.

(3)Excludes $3.9 million and $3.4 million as of June 30, 2020 and December 31, 2019, 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

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

							Outstanding Borrowings at
	Number of Assets Encumbered	Interest Rate at June 30, 2020			Maturity Date		June 30, 2020		December 31, 2019
Mortgage loan (2)	7	1.68	%	(1)	April 2022	(6)	$	200,000	$	200,000
Mortgage loan (3)	1	5.25	%		June 2022		30,773		31,215
Mortgage loan (4)	3	4.95	%		October 2022		88,038		89,299
Mortgage loan (5)	1	4.94	%		October 2022		28,379		28,785
Mortgage loan (2)	4	1.83	%	(1)	April 2024	(6)	85,000		85,000
Mortgage loan (2)	3	2.88	%	(1)	April 2024	(6)	96,000		96,000
	19						528,190		530,299
Deferred financing costs, net							(3,136)		(3,869)
Total mortgage loans, net							$	525,054	$	526,430

(1)Interest rate at June 30, 2020 gives effect to interest rate hedges.

(2)The hotels encumbered by the mortgage loan are cross-collateralized. Requires payments of interest only through maturity.

(3)Includes $0.4 million and $0.5 million at June 30, 2020 and December 31, 2019, respectively, related to a fair value adjustment on a mortgage loan.

(4)Includes $1.1 million and $1.4 million at June 30, 2020 and December 31, 2019, respectively, related to fair value adjustments on the mortgage loans.

(5)Includes $0.4 million and $0.4 million at June 30, 2020 and December 31, 2019, respectively, related to a fair value adjustment on the mortgage loan.

(6)The mortgage loan provides two one year extension options.

Schedule of Interest Expense Components

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

	For the three months ended June 30,				For the six months ended June 30,
	2020		2019		2020		2019
Senior Notes	$	5,940	$	5,944	$	11,883	$	11,888
Revolver and Term Loans	12,705		10,838		23,356		20,991
Mortgage loans	4,475		5,150		9,115		10,573
Amortization of deferred financing costs	1,045		1,110		2,067		1,902
Undesignated interest rate swaps	(371)		2,195		1,186		(55)
Total interest expense	$	23,794	$	25,237	$	47,607	$	45,299

Schedule of Senior Notes [Table Text Block]

The Company's senior unsecured notes are referred to as the "Senior Notes." The Company's Senior Notes consisted of the following (in thousands):

			Outstanding Borrowings at
	Interest Rate	Maturity Date	June 30, 2020		December 31, 2019
Senior unsecured notes (1) (2) (3)	6.00%	June 2025	$	498,122	$	500,484

(1)Requires payments of interest only through maturity.

(2)The senior unsecured notes include $23.2 million and $25.6 million at June 30, 2020 and December 31, 2019, respectively, related to acquisition related fair value adjustments on the senior unsecured notes.

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