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Debt (Tables)
 3 Months Ended
Mar. 31, 2013
Debt Disclosure [Abstract]  
Summary of long term debt
The following table sets forth information regarding the Company’s debt as of March 31, 2013, in thousands:
Property
 
Principal
Balance
 
Interest Rate
 
 
 
 
 
Courtyard Manhattan / Midtown East
 
$
41,836

 
8.81%
Marriott Salt Lake City Downtown
 
28,227

 
5.50%
Courtyard Manhattan / Fifth Avenue
 
50,020

 
6.48%
Renaissance Worthington
 
54,471

 
5.40%
Frenchman’s Reef & Morning Star Marriott Beach Resort
 
58,429

 
5.44%
Marriott Los Angeles Airport
 
82,600

 
5.30%
Orlando Airport Marriott
 
57,375

 
5.68%
Chicago Marriott Downtown Magnificent Mile
 
210,686

 
5.975%
Hilton Minneapolis
 
96,544

 
5.464%
JW Marriott Denver at Cherry Creek
 
40,588

 
6.47%
Lexington Hotel New York
 
170,368

 
LIBOR + 3.00% (3.20% at March 31, 2013)
Westin Washington D.C. City Center
 
73,703

 
3.99%
The Lodge at Sonoma, a Renaissance Resort & Spa
 
31,000

 
3.96%
Westin San Diego
 
71,000

 
3.94%
Debt premium
 
814

 
 
Total mortgage debt
 
1,067,661

 
 
 
 
 
 
 
Senior unsecured credit facility
 
10,000

 
LIBOR + 1.90% (2.15% at March 31, 2013)
Total debt
 
$
1,077,661

 
 
Weighted-Average Interest Rate
 
 
 
5.21%
Summary of applicable margin based upon the Company’s ratio of net indebtedness to EBITDA
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
 
March 31,
2013
Maximum leverage ratio (1)
60%
 
42.4%
Minimum fixed charge coverage ratio (2)
1.50x
 
2.63x
Minimum tangible net worth (3)
$1.857 billion
 
$2.222 billion
Secured recourse indebtedness (4)
Less than 50% of Total Asset Value
 
38%
_____________________________
(1)
Leverage ratio is total indebtedness, as defined in the credit agreement which includes our commitment on the Times Square development hotel, divided by total asset value, 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, defined in the credit agreement as EBITDA less FF&E reserves, for the most recently ending 12 fiscal months, to fixed charges, 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)
After December 31, 2013, the secured recourse indebtedness covenant threshold will decrease to 45% of Total Asset Value, as defined in the credit agreement.