Debt (Tables)

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Schedule of Debt

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

	March 31, 2023		December 31, 2022
Senior Notes, net	$	989,899	$	989,307
Revolver	—		—
Term Loans, net	821,681		820,536
Mortgage loans, net	407,704		407,712
Debt, net	$	2,219,284	$	2,217,555

Schedule of Senior Notes

The Company's senior notes (collectively, the "Senior Notes") consisted of the following (dollars in thousands):

			Carrying Value at
	Interest Rate	Maturity Date	March 31, 2023		December 31, 2022
2029 Senior Notes (1)	4.00%	September 2029	$	500,000	$	500,000
2026 Senior Notes (1)	3.75%	July 2026	500,000		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:

	Covenant	Compliance
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

Schedule of Revolver and Term Loans

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

			Carrying Value at
	Interest Rate at March 31, 2023 (1)	Maturity Date	March 31, 2023		December 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 2025	400,000		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.

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	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.

Schedule of mortgage loans

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

						Carrying Value at
	Number of Assets Encumbered	Interest Rate at March 31, 2023		Maturity Date		March 31, 2023		December 31, 2022
Mortgage loan (1)	7	4.35%	(3)	April 2023	(4)	$	200,000	$	200,000
Mortgage loan (1)	3	2.53%	(3)	April 2024	(5)	96,000		96,000
Mortgage loan (1)	4	4.89%	(3)	April 2024	(5)	85,000		85,000
Mortgage loan (2)	1	5.06%		January 2029		27,103		27,193
	15					408,103		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.

Schedule of Interest Expense Components

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

	For the three months ended March 31,
	2023		2022
Senior Notes	$	9,688	$	9,743
Revolver and Term Loans	8,543		9,968
Mortgage loans	3,943		3,210
Amortization of deferred financing costs	1,474		1,684
Non-cash interest expense related to interest rate hedges	482		(44)
Total interest expense	$	24,130	$	24,561