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Debt (Tables)
 12 Months Ended
Dec. 31, 2015
Debt Disclosure [Abstract]  
Summary of Long Term Debt
The following table sets forth information regarding the Company’s debt as of December 31, 2015 (dollars in thousands):
Property
 
Principal
Balance
 
Interest Rate
 
Maturity Date
 
Amortization Provisions
Chicago Marriott Downtown Magnificent Mile(1)
 
$
201,713

 
5.98
%
 
April 2016
 
30 years
Courtyard Manhattan / Fifth Avenue
 
48,308

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

 
LIBOR + 2.25%(2)

 
October 2017(3)
 
Interest Only
Salt Lake City Marriott Downtown
 
59,992

 
4.25
%
 
November 2020
 
25 years
Hilton Minneapolis
 
90,653

 
5.46
%
 
May 2021
 
25 years
Westin Washington D.C. City Center
 
68,776

 
3.99
%
 
January 2023
 
25 years
The Lodge at Sonoma, a Renaissance Resort & Spa
 
29,534

 
3.96
%
 
April 2023
 
30 years
Westin San Diego
 
67,629

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

 
4.40
%
 
August 2024
 
30 years
Renaissance Worthington
 
85,000

 
3.66
%
 
May 2025
 
30 years
JW Marriott Denver at Cherry Creek
 
65,000

 
4.33
%
 
July 2025
 
30 years
Boston Westin
 
204,723

 
4.36
%
 
November 2025
 
30 years
Total mortgage debt
 
1,177,696

 
 
 
 
 
 
Senior unsecured credit facility
 
—

 
LIBOR + 1.75%(4)

 
January 2017(5)
 
Interest Only
Total debt
 

$1,177,696

 
 
 
 
 
 
Weighted-Average Interest Rate
 
 
 
4.49%
 
 
 
 
_____________
(1)
The loan was prepaid on January 11, 2016, three months prior to the scheduled maturity date.
(2)
The interest rate at December 31, 2015 is 2.49%.
(3)
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.
(4)
The interest rate at December 31, 2015 is 2.19%.
(5)
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, 2015 are as follows (in thousands):
2016
$
262,129

2017 (1)
185,475

2018
16,327

2019
17,063

2020
69,353

Thereafter
627,349

 
$
1,177,696


_____________
(1)
The Lexington Hotel New York mortgage loan matures in 2017. 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.
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,
2015
Maximum leverage ratio (1)
60%
 
34.7%
Minimum fixed charge coverage ratio (2)
1.50x
 
3.72x
Minimum tangible net worth (3)
$1.90 billion
 
$2.55 billion
Secured recourse indebtedness
Less than 45% of Total Asset Value
 
34.7%
_____________________________

(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.