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Debt
 3 Months Ended
Mar. 31, 2023
Debt Disclosure [Abstract]  
Debt Debt
 
The Company's debt consisted of the following (in thousands):
March 31, 2023December 31, 2022
Senior Notes, net$989,899 $989,307 
Revolver— — 
Term Loans, net821,681 820,536 
Mortgage loans, net407,704 407,712 
Debt, net$2,219,284 $2,217,555 

Senior Notes

The Company's senior notes (collectively, the "Senior Notes") consisted of the following (dollars in thousands):
Carrying Value at
Interest RateMaturity DateMarch 31, 2023December 31, 2022
2029 Senior Notes (1)4.00%September 2029$500,000 $500,000 
2026 Senior Notes (1)3.75%July 2026500,000 500,000 
1,000,000 1,000,000 
Deferred financing costs, net(10,101)(10,693)
Total senior notes, net$989,899 $989,307 
(1)Requires payment of interest only through maturity.
The indentures governing the Senior Notes contain customary covenants that limit the Operating Partnership’s ability and,
in certain instances, the ability of its subsidiaries, to incur additional debt, create liens on assets, make distributions and pay
dividends, make certain types of investments, issue guarantees of indebtedness, and make certain restricted payments. These
limitations are subject to a number of exceptions and qualifications set forth in the indentures.

A summary of the various restrictive covenants for the Senior Notes are as follows:
CovenantCompliance
Maintenance Covenant
Unencumbered Asset to Unencumbered Debt Ratio
> 150.0%
Yes
Incurrence Covenants
Consolidated Indebtedness less than Adjusted Total Assets
< .65x
Yes
Consolidated Secured Indebtedness less than Adjusted Total Assets
< .45x
Yes
Interest Coverage Ratio
> 1.5x
Yes

As of March 31, 2023 and December 31, 2022, the Company was in compliance with all covenants associated with the Senior Notes.

Revolver and Term Loans
 
The Company has the following unsecured credit agreements in place:

•$600.0 million revolving credit facility with a scheduled maturity date of May 18, 2024 and a one year extension option if certain conditions are satisfied (the "Revolver");
•$400.0 million term loan with a scheduled maturity date of January 25, 2024 (the "$400 Million Term Loan Maturing 2024");
•$225.0 million term loan with a scheduled maturity date of January 25, 2024 (the "$225 Million Term Loan Maturing 2024");
•$400.0 million term loan with a scheduled maturity date of May 18, 2025 (the "$400 Million Term Loan Maturing 2025"); and
•$200.0 million term loan with a scheduled maturity date of January 31, 2026 and two one year extension options if certain conditions are satisfied (the "$200 Million Term Loan Maturing 2026").
The $400 Million Term Loan Maturing 2024, the $225 Million Term Loan Maturing 2024, the $400 Million Term Loan Maturing 2025, and the $200 Million Term Loan Maturing 2026 are collectively referred to as the "Term Loans."

In January 2023, the Company received the remaining $95.0 million in proceeds on the $200 Million Term Loan Maturing 2026 that closed in November 2022 and utilized these proceeds to pay off approximately $52.3 million of the principal balance of a term loan with a scheduled maturity date of January 25, 2023 (the "$400 Million Term Loan Maturing 2023") and approximately $41.7 million of the principal balance of another term loan with a scheduled maturity date of January 25, 2023 (the "$225 Million Term Loan Maturing 2023").
The Company's unsecured credit agreements consisted of the following (dollars in thousands):
Carrying Value at
Interest Rate at March 31, 2023 (1)Maturity DateMarch 31, 2023December 31, 2022
Revolver (2)—%May 2024$— $— 
$400 Million Term Loan Maturing 2023 (3)
—%—— 52,261 
$400 Million Term Loan Maturing 2024
6.71%January 2024 (5)151,683 151,683 
$225 Million Term Loan Maturing 2023 (3)
—%—— 41,745 
$225 Million Term Loan Maturing 2024
4.57%January 2024 (5)72,973 72,973 
$400 Million Term Loan Maturing 2025
3.27%May 2025400,000 400,000 
$200 Million Term Loan Maturing 2026 (4)
3.43%January 2026 (6)200,000 105,000 
824,656 823,662 
Deferred financing costs, net (7)(2,975)(3,126)
Total Revolver and Term Loans, net$821,681 $820,536 
 
(1)Interest rate at March 31, 2023 gives effect to interest rate hedges.
(2)There was $600.0 million of remaining capacity on the Revolver at both March 31, 2023 and December 31, 2022. The Company has the ability to extend the maturity date for an additional one year period ending May 2025 if certain conditions are satisfied.
(3)In January 2023, the Company received the remaining $95.0 million in proceeds on the $200 Million Term Loan Maturing 2026 and utilized these proceeds to pay off these Term Loans.
(4)In January 2023, the Company received the remaining $95.0 million in proceeds on this Term Loan.
(5)In January 2023, the Company exercised its options to extend the maturities of these Term Loan balances to January 2024.
(6)This Term Loan includes two one year extension options. The exercise of the extension options will be at the Company's discretion, subject to certain conditions.
(7)Excludes $1.4 million and $1.7 million as of March 31, 2023 and December 31, 2022, respectively, related to deferred financing costs on the Revolver, which are included in prepaid expense and other assets in the accompanying consolidated balance sheets.

The Revolver and Term Loans are subject to various financial covenants. A summary of the most restrictive covenants is as follows:
CovenantCompliance
Leverage ratio (1)
<= 7.00x
Yes
Fixed charge coverage ratio (2)
>= 1.50x
Yes
Secured indebtedness ratio
<= 45.0%
Yes
Unencumbered indebtedness ratio
<= 60.0%
Yes
Unencumbered debt service coverage ratio
>= 2.00x
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.
Mortgage Loans 

The Company's mortgage loans consisted of the following (dollars in thousands):
Carrying Value at
Number of Assets EncumberedInterest Rate at March 31, 2023 Maturity DateMarch 31, 2023December 31, 2022
Mortgage loan (1)74.35%(3)April 2023(4)$200,000 $200,000 
Mortgage loan (1)32.53%(3)April 2024(5)96,000 96,000 
Mortgage loan (1)44.89%(3)April 2024(5)85,000 85,000 
Mortgage loan (2)15.06%January 202927,103 27,193 
15408,103 408,193 
Deferred financing costs, net(399)(481)
Total mortgage loans, net$407,704 $407,712 

(1)The hotels encumbered by the mortgage loan are cross-collateralized. Requires payments of interest only through maturity.
(2)Includes $2.1 million and $2.2 million at March 31, 2023 and December 31, 2022, respectively, related to a fair value adjustment on this mortgage loan.
(3)Interest rate at March 31, 2023 gives effect to interest rate hedges.
(4)This mortgage loan provides for an additional one year extension option. In April 2023, the Company exercised the final option to extend the maturity to April 2024.
(5)This mortgage loan provides two one year extension options.
 
Certain mortgage agreements are subject to various maintenance covenants requiring the Company to maintain a minimum debt yield or debt service coverage ratio ("DSCR"). Failure to meet the debt yield or DSCR thresholds is not an event of default, but instead triggers a cash trap event. During the cash trap event, the lender or servicer of the mortgage loan controls cash outflows until the loan is covenant compliant and accordingly, such cash is restricted. In addition, certain mortgage loans have other requirements including continued operation and maintenance of the hotel property. As of December 31, 2022, although all mortgage loans met their debt yield or DSCR thresholds, one mortgage loan was in a cash trap event pending notification to the lender to remove the restrictions. As of December 31, 2022, there was approximately $26.9 million of restricted cash held by this lender due to the cash trap event, and during the three months ended March 31, 2023, all of the restrictions on this cash were removed. At March 31, 2023, all mortgage loans met their debt yield or DSCR thresholds and no mortgage loans were in cash trap events.

Interest Expense

The components of the Company's interest expense consisted of the following (in thousands):
For the three months ended March 31,
20232022
Senior Notes$9,688 $9,743 
Revolver and Term Loans8,543 9,968 
Mortgage loans3,943 3,210 
Amortization of deferred financing costs1,474 1,684 
Non-cash interest expense related to interest rate hedges482 (44)
Total interest expense$24,130 $24,561