Long-Term Debt (Tables)

9 Months Ended

Sep. 30, 2020

Long-Term Debt [Abstract]

Summary of Long Term Debt

Lender		Balance at September 30, 2020	Interest rate at September 30, 2020	Maturity	Amortization provision	Properties encumbered at September 30, 2020	Balance at December 31, 2019
Fixed rate debt
Morgan Stanley Bank of America Merrill Lynch Trust 2014-C18	$	8,501	4.54%	08/2024	25 years	1	$	8,639
Great Western Bank (1)		13,199	4.33%	12/2021 (5)	25 years	1		13,290
Great Western Bank (1)		915	4.33%	12/2021 (5)	7 years	-		971
Paycheck Protection Program (8)		2,299	1.00%	05/2022	(8)	-		-
Total fixed rate debt		24,914						22,900
Variable rate debt
Wells Fargo		25,463	2.55% (2)	11/2022 (6)	30 years	3		25,612
KeyBank credit facility (3)		129,945	3.75% (4)	4/2021 (7)	Interest only	10		86,845
Total variable rate debt		155,408				15		112,457
Total long-term debt	$	180,322					$	135,357
Less: Deferred financing costs		(1,007)						(1,356)
Total long-term debt, net of deferred financing costs	$	179,315					$	134,001

(1) Both loans are collateralized by Aloft Leawood.

(2) Variable rate of 30-day LIBOR plus 2.39%,  effectively fixed at 4.44% after giving effect to interest rate swap (see Note 8).

(3) Prior to March 30, 2020, the $150,000 credit facility included an accordion feature that would allow the credit facility to be increased to $400,000 with additional lender commitments. Available borrowing capacity under the credit facility was based on a borrowing base formula for the pool of hotel properties securing the facility.  The commitment fee on the unused facility was 0.20%.  The Sixth and Seventh Amendments to the credit facility, as discussed above, modified this availability to set the size of the facility at $136,080 with no ability to reborrow under the facility in the future without lender approval.

(4) Prior to March 30, 2020, borrowings under the facility accrued interest based on a leverage-based pricing grid, at the Company’s option, at either LIBOR plus a spread ranging from 2.25% to 3.00% (depending on leverage) or a base rate plus a spread ranging from 1.25% to 2.00% (depending on leverage).  On March 30, 2020, these terms were modified with the Sixth Amendment to the credit facility, as discussed above, to increase the interest rate to LIBOR (with a floor of 0.25%) plus 3.25% or a base rate plus 2.25%, with further increases to interest rate spreads of 0.25% at six month intervals.  On May 13, 2020, with the Seventh Amendment to the credit facility, as discussed above, the LIBOR floor was increased to 0.50%.  The 30-day LIBOR for $30,000 notional capped at 3.35% after giving effect to market rate cap (see Note 8). 

(5) Term may be extended for additional two years subject to interest rate adjustments.

(6) Twoone-year extension options subject to the satisfaction of certain conditions.

(7) With the signing of the Sixth Amendment to the credit facility, as discussed above, two extension options (six months and five months) are available subject to the satisfaction of certain conditions.

(8) The PPP loans are made up of three separate loans received in April 2020.  Monthly payments totaling $121 are scheduled to begin December 2020 if the loan or a portion of it is not forgiven.

Aggregate Annual Principal Payments on Debt

	Total
Remainder of 2020	$	305
2021		146,120
2022		25,844
2023		214
2024		7,839
Thereafter		-
Total	$	180,322