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Debt (Tables)
 6 Months Ended
Jun. 30, 2014
Debt Disclosure [Abstract]  
Summary of long term debt
The following table sets forth information regarding the Company’s debt as of June 30, 2014, in thousands:
Property
 
Principal
Balance
 
Interest Rate
 
Maturity Date
 
 
 
 
 
 
 
Courtyard Manhattan / Midtown East (1)
 
$
41,315

 
8.81%
 
October 2014
Marriott Salt Lake City Downtown
 
62,179

 
4.25%
 
November 2020
Courtyard Manhattan / Fifth Avenue
 
49,282

 
6.48%
 
June 2016
Renaissance Worthington
 
53,334

 
5.40%
 
July 2015
Frenchman’s Reef & Morning Star Marriott Beach Resort
 
57,136

 
5.44%
 
August 2015
Marriott Los Angeles Airport
 
82,600

 
5.30%
 
July 2015
Orlando Airport Marriott
 
56,353

 
5.68%
 
January 2016
Chicago Marriott Downtown Magnificent Mile
 
206,799

 
5.975%
 
April 2016
Hilton Minneapolis
 
93,980

 
5.464%
 
May 2021
JW Marriott Denver at Cherry Creek
 
39,226

 
6.47%
 
July 2015
Lexington Hotel New York
 
170,368

 
LIBOR + 3.00% (3.151% at June 30, 2014)
 
March 2015 (2)
Westin Washington D.C. City Center
 
71,533

 
3.99%
 
January 2023
The Lodge at Sonoma, a Renaissance Resort & Spa
 
30,377

 
3.96%
 
April 2023
Westin San Diego
 
69,568

 
3.94%
 
April 2023
Debt premium (3)
 
362

 
 
 
 
Total mortgage debt
 
1,084,412

 
 
 
 
 
 
 
 
 
 
 
Senior unsecured credit facility (5)
 
41,320

 
LIBOR + 1.90% (2.09% at June 30, 2014)
 
January 2017 (2)
Total debt
 
$
1,125,732

 
 
 
 
Weighted-Average Interest Rate
 
 
 
5.05%
 
 

_______________________
(1)
We prepaid the mortgage loan in full on July 1, 2014.
(2)
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.
(3)
Recorded upon our assumption of the JW Marriott Denver at Cherry Creek mortgage debt in 2011.
(4)
The credit facility may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions.
(5)
Draw on the credit facility was used to fund the prepayment of the mortgage loan secured by the Courtyard Manhattan/Midtown East on July 1, 2014. As permitted under the credit facility, the mortgage was transferred to the credit facility until the closing of the new mortgage loan on July 18, 2014.
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
 
June 30,
2014
Maximum leverage ratio (1)
60%
 
46.0%
Minimum fixed charge coverage ratio (2)
1.50x
 
2.52x
Minimum tangible net worth (3)
$1.857 billion
 
$2.321 billion
Secured recourse indebtedness
Less than 45% of Total Asset Value
 
40.7%
_____________________________
(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 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-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.