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Debt (Tables)
 12 Months Ended
Dec. 31, 2014
Debt Disclosure [Abstract]  
Summary of long term debt
The following table sets forth information regarding the Company’s debt as of December 31, 2014:
Property
 
Principal
Balance
(In thousands)
 
Interest Rate
 
Maturity Date
 
Amortization Provisions
JW Marriott Denver at Cherry Creek
 
$
38,552

 
6.47
%
 
July 2015
 
25 years
Renaissance Worthington
 
52,859

 
5.40
%
 
July 2015
 
30 years
Frenchman’s Reef & Morning Star Marriott Beach Resort
 
56,595

 
5.44
%
 
August 2015
 
30 years
Orlando Airport Marriott
 
55,925

 
5.68
%
 
January 2016
 
30 years
Chicago Marriott Downtown Magnificent Mile
 
205,166

 
5.975
%
 
April 2016
 
30 years
Courtyard Manhattan / Fifth Avenue
 
48,970

 
6.48
%
 
June 2016
 
30 years
Lexington Hotel New York
 
170,368

 
LIBOR + 2.50% (2.656% at December 31, 2014)

 
October 2017 (1)
 
Interest Only
Salt Lake City Marriott Downtown
 
61,352

 
4.25
%
 
November 2020
 
25 years
Hilton Minneapolis
 
92,732

 
5.464
%
 
May 2021
 
25 years
Westin Washington D.C. City Center
 
70,635

 
3.99
%
 
January 2023
 
25 years
The Lodge at Sonoma, a Renaissance Resort & Spa
 
30,058

 
3.96
%
 
April 2023
 
30 years
Westin San Diego
 
68,937

 
3.94
%
 
April 2023
 
30 years
Courtyard Manhattan / Midtown East
 
86,000

 
4.40
%
 
August 2024
 
30 years
Debt premium (2)
 
181

 
 
 
 
 
 
Total mortgage debt
 
1,038,330

 
 
 
 
 
 
Senior unsecured credit facility
 
—

 
LIBOR + 1.90% (2.09% at December 31, 2014)

 
January 2017 (3)
 
Interest Only
Total debt
 

$1,038,330

 
 
 
 
 
 
Weighted-Average Interest Rate
 
 
 
4.95%
 
 
 
 
_____________
(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. We amended the loan on October 8, 2014, which is discussed further below.
(2)
Recorded upon our assumption of the JW Marriott Denver at Cherry Creek mortgage debt.
(3)
The credit facility may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions.

Schedule of maturities of long-term debt

The aggregate debt maturities as of December 31, 2014 are as follows (in thousands):
2015
$
160,860

2016
313,501

2017
9,751

2018
10,199

2019 (1)
181,037

Thereafter
362,982

 
$
1,038,330


_____________
(1)
Assumes the Lexington Hotel New York mortgage loan is extended under the terms discussed above.
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,
2014
Maximum leverage ratio (1)
60%
 
34.8%
Minimum fixed charge coverage ratio (2)
1.50x
 
2.85x
Minimum tangible net worth (3)
$1.904 billion
 
$2.454 billion
Secured recourse indebtedness
Less than 45% of Total Asset Value
 
34.8%
_____________________________

(1)
Leverage ratio is total indebtedness, as defined in the credit agreement, divided by total asset value, defined in the credit agreement as a) total cash and cash equivalents and b) the value of our owned hotels based on hotel net operating income divided by a defined capitalization rate.

(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-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.