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Debt (Tables) | 6 Months Ended
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Jun. 30, 2016
Debt Disclosure [Abstract] |
Summary of long term debt | The following table sets forth information regarding the Company’s debt as of June 30, 2016 (dollars in thousands):
Property |  | Principal Balance |  | Interest Rate |  | Maturity Date
Lexington Hotel New York |  | $ | 170,368 |  |  | LIBOR + 2.25% (1) |  | October 2017 (2)
Salt Lake City Marriott Downtown |  | 59,234 |  |  | 4.25% |  | November 2020
Westin Washington D.C. City Center |  | 67,822 |  |  | 3.99% |  | January 2023
The Lodge at Sonoma, a Renaissance Resort & Spa |  | 29,242 |  |  | 3.96% |  | April 2023
Westin San Diego |  | 66,959 |  |  | 3.94% |  | April 2023
Courtyard Manhattan / Midtown East |  | 86,000 |  |  | 4.40% |  | August 2024
Renaissance Worthington |  | 85,000 |  |  | 3.66% |  | May 2025
JW Marriott Denver at Cherry Creek |  | 65,000 |  |  | 4.33% |  | July 2025
Boston Westin |  | 203,115 |  |  | 4.36% |  | November 2025
Unamortized debt issuance costs |  | (6,745 | ) |  |  |  |
Total mortgage debt, net of unamortized debt issuance costs |  | 825,995 |  |  |  |  |
Senior unsecured term loan |  | 100,000 |  |  | LIBOR + 1.45% (3) |  | May 2021
Unamortized debt issuance costs |  | (701 | ) |  |  |  |
Senior unsecured term loan, net of unamortized debt issuance costs |  | 99,299 |  |  |  |  |
Senior unsecured credit facility |  | — |  |  | LIBOR + 1.50% (4) |  | May 2020 (5)
Total debt, net of unamortized debt issuance costs |  | $ | 925,294 |  |  |  |  |
Weighted-Average Interest Rate |  |  |  | 3.71% |  |
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(1) | The interest rate as of June 30, 2016 was 2.71%.
(2) | The loan may be extended for two additional one-year terms subject to the satisfaction of certain conditions, including a debt yield based on trailing 12-month hotel cash flows equal to or greater than 13% at the time the first extension option is exercised, and the payment of an extension fee. As of June 30, 2016, the debt yield was approximately 6.4%.
(3) | The interest rate as of June 30, 2016 was 1.90%.
(4) | The interest rate as of June 30, 2016 was 1.97%.
(5) | 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 the Company’s leverage ratio, as follows:
Leverage Ratio |  | Applicable Margin
Less than or equal to 35% |  | 1.45 | %
Greater than 35% but less than or equal to 45% |  | 1.60 | %
Greater than 45% but less than or equal to 50% |  | 1.75 | %
Greater than 50% but less than or equal to 55% |  | 1.95 | %
Greater than 55% |  | 2.20 | %
The applicable margin is based upon the the Company’s leverage ratio, as follows:
Leverage Ratio |  | Applicable Margin
Less than or equal to 35% |  | 1.50 | %
Greater than 35% but less than or equal to 45% |  | 1.65 | %
Greater than 45% but less than or equal to 50% |  | 1.80 | %
Greater than 50% but less than or equal to 55% |  | 2.00 | %
Greater than 55% |  | 2.25 | %
Summary of the most restrictive covenants for senior unsecured credit facility | The facility also contains various corporate financial covenants. A summary of the most restrictive covenants is as follows:
|  |  | Actual at
| Covenant |  | June 30, 2016
Maximum leverage ratio (1) | 60% |  | 23.9%
Minimum fixed charge coverage ratio (2) | 1.50x |  | 4.09x
Minimum tangible net worth (3) | $1.91 billion |  | $2.52 billion
Secured recourse indebtedness | Less than 45% of Total Asset Value |  | 27.1%
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(1) | Leverage ratio is net indebtedness, as defined in the credit agreement, divided by total asset value, defined in the credit agreement as 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, generally 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.

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