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Debt (Tables)
 12 Months Ended
Dec. 31, 2011
Debt Disclosure [Abstract]  
Summary of long term debt
The following table sets forth information regarding the Company’s debt as of December 31, 2011:
Property
 
Principal
Balance
(In thousands)
 
Interest Rate
 
Maturity Date
 
Amortization Provisions
Courtyard Manhattan / Midtown East
 

$42,303

 
8.81
%
 
October 2014
 
30 Years
Marriott Salt Lake City Downtown
 
30,210

 
5.50
%
 
January 2015
 
20 Years
Courtyard Manhattan / Fifth Avenue
 
50,708

 
6.48
%
 
June 2016
 
30 Years
Renaissance Worthington
 
55,540

 
5.40
%
 
July 2015
 
30 Years
Frenchman’s Reef & Morning Star Marriott Beach Resort
 
59,645

 
5.44
%
 
August 2015
 
30 Years
Marriott Los Angeles Airport
 
82,600

 
5.30
%
 
July 2015
 
Interest Only
Orlando Airport Marriott
 
58,334

 
5.68
%
 
January 2016
 
30 Years
Chicago Marriott Downtown Magnificent Mile
 
214,324

 
5.975
%
 
April 2016
 
30 Years
Hilton Minneapolis
 
98,950

 
5.464
%
 
April 2021
 
25 Years
JW Marriott Denver at Cherry Creek
 
41,845

 
6.47
%
 
July 2015
 
25 Years
Courtyard Denver Downtown (1)
 
27,034

 
6.26
%
 
August 2012
 
30 Years
Renaissance Austin (2)
 
83,000

 
5.507
%
 
December 2016
 
Interest Only
Renaissance Waverly (2)
 
97,000

 
5.503
%
 
December 2016
 
Interest Only
Debt premiums (3)
 
1,440

 
 
 
 
 
 
Total mortgage debt
 
942,933

 
 
 
 
 
 
Senior unsecured credit facility
 
100,000

 
LIBOR + 3.00% (3.29% at December 31, 2011)

 
August 2014
 
Interest Only
Total debt
 

$1,042,933

 
 
 
 
 
 
Weighted-Average Interest Rate
 
 
 
5.61%
 
 
 
 
_____________
(1)
We prepaid the mortgage in full on February 7, 2012.
(2)
Classified as mortgage debt of assets held for sale on our consolidated balance sheet as of December 31, 2011.
(3)
Recorded upon our assumption of the JW Marriott Denver at Cherry Creek and Courtyard Denver Downtown mortgage debt in 2011.
Schedule of maturities of long-term debt

The aggregate debt maturities as of December 31, 2011 are as follows (in thousands):
2012
$
37,745

2013
11,505

2014
153,298

2015
318,208

2016
432,451

Thereafter
88,286

 
$
1,041,493
Summary of leverage and applicable margin
nt. The applicable margin is based upon the Company’s ratio of net indebtedness to EBITDA, as follows:
Ratio of Net Indebtedness to EBITDA
 
Applicable Margin
Less than 4.00 to 1.00
 
2.25
%
Greater than or equal to 4.00 to 1.00 but less than 5.00 to 1.00
 
2.50
%
Greater than or equal to 5.00 to 1.00 but less than 5.50 to 1.00
 
2.75
%
Greater than or equal to 5.50 to 1.00 but less than 6.00 to 1.00
 
3.00
%
Greater than or equal to 6.00 to 1.00
 
3.25
%
Summary of the most restrictive covenants for senior unsecured credit facility
The facility contains various corporate financial covenants. A summary of the most restrictive covenants is as follows:
 
 
 
Actual at
 
Covenant
 
December 31,
2011
Maximum leverage ratio(1)
60%
 
44.7%
Minimum fixed charge coverage ratio(2)
1.50x
 
2.07x
Minimum tangible net worth(3)
$1.8 billion
 
$2.0 billion
_____________________________

(1)
Leverage ratio is total indebtedness, as defined in the credit agreement and which includes our commitment on the Times Square development hotel, divided by total asset value, which is defined in the credit agreement as a) total cash and cash equivalents plus b) the value of our owned hotels based on (i) until March 31, 2012, appraised values and (ii) after March 31, 2012, hotel net operating income divided by an 8.5% capitalization rate, and (c) the book value of the Allerton loan.
(2)
Fixed charge coverage ratio is Adjusted EBITDA, which is defined in the credit agreement as EBITDA less FF&E reserves, for the most recently ending 12 fiscal months, to fixed charges, which is defined in the credit agreement as interest expense, all regularly scheduled principal payments and payments on capitalized lease obligations, for the same most recently ending 12 fiscal month period.
(3)
Tangible net worth, as defined in the credit agreement, is (i) total gross book value of all assets, exclusive of depreciation and amortization, less intangible assets, total indebtedness, and all other liabilities, plus (ii) 85% of net proceeds from future equity issuan