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Debt (Tables)
 12 Months Ended
Dec. 31, 2012
Debt Disclosure [Abstract]  
Summary of long term debt
The following table sets forth information regarding the Company’s debt as of December 31, 2012:
Property
 
Principal
Balance
(In thousands)
 
Interest Rate
 
Maturity Date
 
Amortization Provisions
Courtyard Manhattan / Midtown East
 

$41,933

 
8.81
%
 
October 2014
 
30 Years
Marriott Salt Lake City Downtown
 
28,640

 
5.50
%
 
January 2015
 
20 Years
Courtyard Manhattan / Fifth Avenue
 
50,173

 
6.48
%
 
June 2016
 
30 Years
Renaissance Worthington
 
54,700

 
5.40
%
 
July 2015
 
30 Years
Frenchman’s Reef & Morning Star Marriott Beach Resort
 
58,690

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

 
5.30
%
 
July 2015
 
Interest Only
Orlando Airport Marriott
 
57,583

 
5.68
%
 
January 2016
 
30 Years
Chicago Marriott Downtown Magnificent Mile
 
211,477

 
5.975
%
 
April 2016
 
30 Years
Hilton Minneapolis
 
96,901

 
5.464
%
 
April 2021
 
25 Years
JW Marriott Denver at Cherry Creek
 
40,761

 
6.47
%
 
July 2015
 
25 Years
Lexington Hotel New York
 
170,368

 
LIBOR + 3.00% (3.214% at December 31, 2012)

 
March 2015 (1)
 
Interest Only
Westin Washington D.C. City Center
 
74,000

 
3.99
%
 
January 2023
 
25 Years
Debt premium (2)
 
905

 
 
 
 
 
 
Total mortgage debt
 
968,731

 
 
 
 
 
 
Senior unsecured credit facility
 
20,000

 
LIBOR + 1.90% (2.150% at December 31, 2012)

 
January 2017 (3)
 
Interest Only
Total debt
 

$988,731

 
 
 
 
 
 
Weighted-Average Interest Rate
 
 
 
5.31%
 
 
 
 
_____________
(1)
The loan may be extended for two additional one-year terms subject to the satisfaction of certain conditions and the payment of an extension fee.
(2)
Recorded upon our assumption of the JW Marriott Denver at Cherry Creek mortgage debt in 2011.
(3)
The credit facility may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain standard conditions.

Schedule of maturities of long-term debt

The aggregate debt maturities as of December 31, 2012 are as follows (in thousands):
2013
$
13,263

2014
55,271

2015
436,418

2016
309,334

2017
24,672

Thereafter
149,773

 
$
988,731
Summary of leverage and applicable margin
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
 
1.75
%
Greater than or equal to 4.00 to 1.00 but less than 5.00 to 1.00
 
1.90
%
Greater than or equal to 5.00 to 1.00 but less than 5.50 to 1.00
 
2.10
%
Greater than or equal to 5.50 to 1.00 but less than 6.00 to 1.00
 
2.20
%
Greater than or equal to 6.00 to 1.00 but less than 6.50 to 1.00
 
2.50
%
Greater than or equal to 6.50 to 1.00
 
2.75
%
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,
2012
Maximum leverage ratio(1)
60%
 
42.0%
Minimum fixed charge coverage ratio(2)
1.50x
 
2.47x
Minimum tangible net worth(3)
$1.857 billion
 
$2.216 billion
Secured recourse indebtedness(4)
Less than 50% of Total Asset Value
 
37%
_____________________________

(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 hotel net operating income divided by a defined 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) 75% of net proceeds from future equity issuances.
(4)
Our secured recourse indebtedness must be less than 45% of Total Asset Value, as defined in the credit agreement, after December 31, 2013.