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Debt (Tables)
 6 Months Ended
Jun. 30, 2015
Debt Disclosure [Abstract]  
Summary of long term debt
The following table sets forth information regarding the Company’s debt as of June 30, 2015 (dollars in thousands):
Property
 
Principal Balance
 
Interest Rate
 
Maturity Date
JW Marriott Denver at Cherry Creek (1)
 
$
38,055

 
6.47%
 
July 2015
Orlando Airport Marriott
 
55,475

 
5.68%
 
January 2016
Chicago Marriott Downtown Magnificent Mile
 
203,449

 
5.975%
 
April 2016
Courtyard Manhattan / Fifth Avenue
 
48,640

 
6.48%
 
June 2016
Lexington Hotel New York
 
170,368

 
LIBOR + 2.25% (2.434% at June 30, 2015)
 
October 2017 (2)
Marriott Salt Lake City Downtown
 
60,734

 
4.25%
 
November 2020
Hilton Minneapolis
 
91,789

 
5.464%
 
May 2021
Westin Washington D.C. City Center
 
69,711

 
3.99%
 
January 2023
The Lodge at Sonoma, a Renaissance Resort & Spa
 
29,819

 
3.96%
 
April 2023
Westin San Diego
 
68,286

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

 
4.40%
 
August 2024
Renaissance Worthington
 
85,000

 
3.66%
 
May 2025
Total mortgage debt
 
1,007,326

 
 
 
 
Senior unsecured credit facility
 
90,000

 
LIBOR + 1.75% (1.94% at June 30, 2015)
 
January 2017 (3)
Total debt
 
$
1,097,326

 
 
 
 
Weighted-Average Interest Rate
 
 
 
4.43%
 
 

_______________________

(1)
The loan was repaid on July 1, 2015, at which time we entered into a new $65 million mortgage loan, as described below.
(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)
The credit facility may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions.
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,
2015
Maximum leverage ratio (1)
60%
 
34.1%
Minimum fixed charge coverage ratio (2)
1.50x
 
3.3x
Minimum tangible net worth (3)
$1.91 billion
 
$2.50 billion
Secured recourse indebtedness
Less than 45% of Total Asset Value
 
31.3%
_____________________________
(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, 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.