Debt

Our debt consists of mortgage notes payable, which are collateralized by the assignment of hotel properties. The following table presents the non-recourse debt on our Consolidated Hotels (dollars in thousands):



				Carrying Amount at December 31,
Consolidated Hotels	Interest Rate	Rate Type	Maturity Date	2019		2018
Seattle Marriott Bellevue ^{(a) (b) (c)}	3.88%	Variable	1/2020	$	97,895	$	99,719
Le Méridien Arlington ^{(b) (c)}	4.44%	Variable	6/2020	34,755		34,787
San Jose Marriott ^{(b) (c)}	4.44%	Variable	7/2020	87,460		87,880
Renaissance Atlanta Midtown Hotel ^{(b) (d)}	3.96%	Variable	8/2021	48,589		48,332
Ritz-Carlton San Francisco	4.59%	Fixed	2/2022	142,923		142,887
Charlotte Marriott City Center	4.53%	Fixed	6/2022	102,636		102,488
Courtyard Nashville Downtown	4.15%	Fixed	9/2022	54,965		55,051
Marriott Sawgrass Golf Resort & Spa ^{(b) (d)}	3.76%	Variable	11/2022	88,747		77,997
Embassy Suites by Hilton Denver-Downtown/Convention Center	3.90%	Fixed	12/2022	98,073		99,818
San Diego Marriott La Jolla	4.13%	Fixed	8/2023	84,422		84,877
				$	840,465	$	833,836

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(a)	On January 22, 2020, we refinanced this loan with a new $98.8 million non-recourse mortgage loan. The loan has a floating annual interest rate of LIBOR plus 2.7%, which has effectively been fixed at 4.2% through an interest rate swap agreement, and a maturity date of January 22, 2023.


(b)	These mortgage loans have variable interest rates, which have effectively been capped or converted to fixed rates through the use of interest rate caps or swaps (Note 7). The interest rates presented for these mortgage loans reflect the rates in effect at December 31, 2019 through the use of an interest rate cap or swap, as applicable.


(c)	These mortgage loans have one-year extension options, which are subject to certain conditions. The maturity dates in the table do not reflect the extension options.


(d)	These mortgage loans have two one-year extension options, which are subject to certain conditions. The maturity dates in the table do not reflect the extension options.

Covenants

Pursuant to our mortgage loan agreements, our consolidated subsidiaries are subject to various operational and financial covenants, including minimum debt service coverage ratios. Most of our mortgage loan agreements contain “lock-box” provisions, which permit the lender to access or sweep a hotel’s excess cash flow and could be triggered by the lender under limited circumstances, including the failure to maintain minimum debt service coverage ratios. If a lender requires that we enter into a cash management agreement, we would generally be permitted to spend an amount equal to our budgeted hotel operating expenses, taxes, insurance and capital expenditure reserves for the relevant hotel. The lender would then hold all excess cash flow after the payment of debt service in an escrow account until certain performance hurdles are met. At December 31, 2019, we were in compliance with the applicable covenants for each of our mortgage loans.

Financing Activity During 2019

On November 1, 2019, we refinanced the $78.0 million Marriott Sawgrass Golf Resort & Spa mortgage loan with a new mortgage loan of $90.0 million. The loan has a floating annual interest rate of LIBOR plus 2.3%, which has effectively been fixed at 3.8% through an interest rate swap agreement, and a maturity date of November 1, 2022. We recognized a net loss on extinguishment of debt of less than $0.1 million on this refinancing during the year ended December 31, 2019.

Financing Activity During 2018

On August 8, 2018, we refinanced the Renaissance Atlanta Midtown senior mortgage and mezzanine loans totaling $34.0 million and $13.5 million, respectively, with one non-recourse mortgage loan totaling $49.0 million, which has a floating annual interest rate of LIBOR plus 2.3% (with the interest rate decreasing to LIBOR plus 2.0% upon achieving a specific minimum debt service coverage ratio as described in the loan agreement). We have entered into an interest rate cap agreement with respect to this variable rate loan. The new loan matures in August 2021. We recognized a net loss on extinguishment of debt of $0.4 million on this refinancing during the year ended December 31, 2018.

Scheduled Debt Principal Payments

Scheduled debt principal payments during each of the next five calendar years following December 31, 2019 are as follows (in thousands):



Years Ending December 31,	Total
2020 ^(a)	$	224,614
2021	53,497
2022	485,618
2023	79,878
2024	—
Total principal payments	843,607
Unamortized deferred financing costs	(3,142		)
Total	$	840,465

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(a)	Balance included a $97.7 million scheduled balloon payment on a consolidated mortgage loan, which was refinanced on January 22, 2020.