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Debt (Tables)
 12 Months Ended
Dec. 31, 2016
Debt Disclosure [Abstract]  
Summary of Long Term 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%
 
 
 
 
_____________
(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.

Schedule of Maturities of Long-Term Debt

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
Summary of Leverage and Applicable Margin
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
%
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
%
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
 
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.