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Debt | 12 Months Ended
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Dec. 31, 2016
Debt Disclosure [Abstract] |
Debt | Debt The following table sets forth information regarding the Company’s debt as of December 31, 2016 (dollars in thousands):
Property |  | Principal Balance |  | Interest Rate |  | Maturity Date |  | Amortization Provisions
Lexington Hotel New York |  | $ | 170,368 |  |  | LIBOR + 2.25% (1) |  |  | October 2017(2) |  | Interest Only
Salt Lake City Marriott Downtown |  | 58,331 |  |  | 4.25 | % |  | November 2020 |  | 25 years
Westin Washington D.C. City Center |  | 66,848 |  |  | 3.99 | % |  | January 2023 |  | 25 years
The Lodge at Sonoma, a Renaissance Resort & Spa |  | 28,896 |  |  | 3.96 | % |  | April 2023 |  | 30 years
Westin San Diego |  | 66,276 |  |  | 3.94 | % |  | April 2023 |  | 30 years
Courtyard Manhattan / Midtown East |  | 85,451 |  |  | 4.40 | % |  | August 2024 |  | 30 years
Renaissance Worthington |  | 85,000 |  |  | 3.66 | % |  | May 2025 |  | 30 years
JW Marriott Denver at Cherry Creek |  | 64,579 |  |  | 4.33 | % |  | July 2025 |  | 30 years
Boston Westin |  | 201,470 |  |  | 4.36 | % |  | November 2025 |  | 30 years
Unamortized debt issuance costs |  | (6,052 | ) |  |  |  |  |  |
Total mortgage debt, net of unamortized debt issuance costs |  | 821,167 |  |  |  |  |  |  |
Senior unsecured term loan |  | 100,000 |  |  | LIBOR + 1.45% (3) |  |  | May 2021 |  | Interest Only
Unamortized debt issuance costs |  | (628 | ) |  |  |  |  |  |
Senior unsecured term loan, net of unamortized debt issuance costs |  | 99,372 |  |  |  |  |  |  |
Senior unsecured credit facility |  | — |  |  | LIBOR + 1.50% |  |  | May 2020 (4) |  | Interest Only
Total debt, net of unamortized debt issuance costs |  | $ | 920,539 |  |  |  |  |  |  |
Weighted-Average Interest Rate |  |  |  | 3.76% |  |  |  |
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(1) | The interest rate at December 31, 2016 is 2.87%.
(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 December 31, 2016, the debt yield was approximately 5.2%.
(3) | The interest rate at December 31, 2016 is 2.09%.
(4) | The credit facility may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions.
The aggregate debt maturities as of December 31, 2016 are as follows (in thousands):
2017 | $ | 182,785 |
2018 | 13,642 |
2019 | 14,247 |
2020 | 66,238 |
2021 | 13,574 |
Thereafter | 536,733 |
| $ | 827,219 |
Mortgage Debt We have incurred limited recourse, property specific mortgage debt secured by certain of our hotels. In the event of default, the lender may only foreclose on the pledged assets; however, in the event of fraud, misapplication of funds or other customary recourse provisions, the lender may seek payment from us. As of December 31, 2016, 9 of our 26 hotel properties were secured by mortgage debt. Our mortgage debt contains certain property specific covenants and restrictions, including minimum debt service coverage ratios that trigger “cash trap” provisions as well as restrictions on incurring additional debt without lender consent. During the year ended December 31, 2016, the cash trap provision was triggered on the mortgage loan secured by the Lexington Hotel New York. As of December 31, 2016, we were in compliance with the financial covenants of our mortgage debt. On January 11, 2016, we repaid the mortgage loan secured by the Chicago Marriott Downtown Magnificent Mile. The loan had an outstanding principal balance of $201.7 million with interest at a fixed rate of 5.98%. On May 11, 2016 we repaid the mortgage loan secured by the Courtyard Manhattan Fifth Avenue. The loan had an outstanding principal balance of $48.1 million with interest at a fixed rate of 6.48%. On June 30, 2016, in connection with the sale of the Hilton Minneapolis, the buyer assumed $89.5 million of mortgage debt secured by the hotel. The loan had a fixed interest rate of 5.46%. Senior Unsecured Credit Facility We are party to a senior unsecured credit facility. On May 3, 2016, we amended and restated the facility to increase the capacity from $200 million to $300 million, decrease the pricing and extend the maturity date to May 2020. The maturity date of the facility may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain other customary conditions. The facility also includes an accordion feature to expand up to $600 million, subject to lender consent. The interest rate on the facility is based upon LIBOR, plus an applicable margin. The applicable margin is based upon the Company’s ratio of net indebtedness to EBITDA, 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 | %
In addition to the interest payable on amounts outstanding under the facility, we are required to pay an amount equal to (x) 0.20% of the unused portion of the facility if the average usage of the facility was greater than 50% or (y) 0.30% of the unused portion of the facility if the average usage of the facility was less than or equal to 50%. The facility also contains various corporate financial covenants. A summary of the most restrictive covenants is as follows:
|  |  | Actual at
| Covenant |  | December 31, 2016
Maximum leverage ratio (1) | 60% |  | 22.1%
Minimum fixed charge coverage ratio (2) | 1.50x |  | 4.5x
Minimum tangible net worth (3) | $1.91 billion |  | $2.55 billion
Secured recourse indebtedness | Less than 45% of Total Asset Value |  | 27.7%
_____________________________
(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.
The facility requires us to maintain a specific pool of unencumbered borrowing base properties. The unencumbered borrowing base assets must include a minimum of seven properties with an unencumbered borrowing base value, as defined in the credit agreement, of not less than $500 million. As of December 31, 2016, the unencumbered borrowing base included seven properties with a borrowing base value of $613.0 million. As of December 31, 2016, we had no borrowings outstanding under the facility and the Company's leverage ratio was 22.1%. Accordingly, interest on our borrowings under the facility, if any, will be based on LIBOR plus 150 basis points for the next fiscal quarter. We incurred interest and unused credit facility fees on the facility of $1.3 million, $1.1 million and $0.9 million for the years ended December 31, 2016, 2015 and 2014, respectively. Senior Unsecured Term Loan On May 3, 2016, we closed on a new five-year $100 million senior unsecured term loan. The interest rate on the term loan is based on a pricing grid ranging from 145 to 220 basis points over LIBOR, based on the Company’s leverage ratio. The financial covenants of the term loan are identical to the covenants on our senior unsecured credit facility, which are described above. The applicable margin is based on 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 | %
As of December 31, 2016, the Company's leverage ratio was 22.1%. Accordingly, interest on our borrowings under the term loan will be based on LIBOR plus 145 basis points for the following quarter. We incurred interest on the term loan of $1.3 million for the year ended December 31, 2016.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 + Details
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