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Debt (Tables)
 9 Months Ended
Sep. 30, 2019
Debt Disclosure [Abstract]  
Summary of long term debt

The following table sets forth information regarding the Company’s debt as of September 30, 2019 and December 31, 2018 (dollars in thousands):
 
 
 
 
 
 
Principal Balance as of
Loan
 
Interest Rate
 
Maturity Date
 
September 30, 2019
 
December 31, 2018
Salt Lake City Marriott Downtown mortgage loan
 
4.25%
 
November 2020
 
$
53,866

 
$
55,032

Westin Washington D.C. City Center mortgage loan
 
3.99%
 
January 2023
 
61,106

 
62,734

The Lodge at Sonoma, a Renaissance Resort & Spa mortgage loan
 
3.96%
 
April 2023
 
27,188

 
27,633

Westin San Diego mortgage loan
 
3.94%
 
April 2023
 
62,241

 
63,385

Courtyard Manhattan / Midtown East mortgage loan
 
4.40%
 
August 2024
 
81,494

 
82,620

Renaissance Worthington mortgage loan
 
3.66%
 
May 2025
 
81,321

 
82,540

JW Marriott Denver at Cherry Creek mortgage loan
 
4.33%
 
July 2025
 
61,549

 
62,411

Boston Westin mortgage loan
 
4.36%
 
November 2025
 
191,682

 
194,466

New Market Tax Credit loan (1)
 
5.17%
 
December 2020
 
2,943

 
2,943

Unamortized debt issuance costs
 
 
 
 
 
(3,434
)
 
(4,017
)
Total mortgage and other debt, net of unamortized debt issuance costs
 
 
 
 
 
619,956

 
629,747

 
 
 
 
 
 
 
 
 
Unsecured term loan
 
LIBOR + 1.45% (2)
 
May 2021
 
—

 
100,000

Unsecured term loan
 
LIBOR + 1.45% (2)
 
April 2022
 
—

 
200,000

Unsecured term loan
 
LIBOR + 1.40% (3)
 
October 2023
 
50,000

 
50,000

Unsecured term loan
 
LIBOR + 1.40% (4)
 
July 2024
 
350,000

 
—

Unamortized debt issuance costs
 
 
 
 
 
(1,301
)
 
(1,781
)
Unsecured term loans, net of unamortized debt issuance costs
 
 
 
 
 
398,699

 
348,219

 
 
 
 
 
 
 
 
 
Senior unsecured credit facility
 
LIBOR + 1.45% (5)
 
July 2023
 
75,000

 
—

 
 
 
 
 
 
 
 
 
Total debt, net of unamortized debt issuance costs
 
 
 
 
 
$
1,093,655

 
$
977,966

Weighted-Average Interest Rate
 
3.87%
 
 
 
 
 
 

_______________________

(1)
Assumed in connection with the acquisition of the Hotel Palomar Phoenix in March 2018.
(2)
The loan was prepaid on July 25, 2019 in connection with the refinancing described below under the heading "Unsecured Term Loans."
(3)
We entered into an interest rate swap agreement in January 2019 to fix LIBOR at 2.41% through October 2023.
(4)
We entered into an interest rate swap agreement on July 25, 2019 to fix LIBOR at 1.70% through July 2024 for $175 million of the loan.
(5)
The credit facility may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions. On July 25, 2019, the credit facility was amended to increase capacity to $400 million and extend maturity to July 2023.

Summary of applicable margin based upon the Company’s ratio of net indebtedness to EBITDA The interest rate on the Revolving Credit Facility is based upon LIBOR, plus an applicable margin based upon the Company’s leverage ratio, as follows:

Leverage Ratio
 
Applicable Margin
Less than 30%
 
1.40
%
Greater than or equal to 30% but less than 35%
 
1.45
%
Greater than or equal to 35% but less than 40%
 
1.50
%
Greater than or equal to 40% but less than 45%
 
1.55
%
Greater than or equal to 45% but less than 50%
 
1.70
%
Greater than or equal to 50% but less than 55%
 
1.90
%
Greater than or equal to 55%
 
2.05
%

The interest rate on each of the term loans is based LIBOR, plus an applicable margin based upon the Company’s leverage ratio, as follows:
Leverage Ratio
 
Applicable Margin
Less than 30%
 
1.35
%
Greater than or equal to 30% but less than 35%
 
1.40
%
Greater than or equal to 35% but less than 40%
 
1.45
%
Greater than or equal to 40% but less than 45%
 
1.50
%
Greater than or equal to 45% but less than 50%
 
1.65
%
Greater than or equal to 50% but less than 55%
 
1.85
%
Greater than or equal to 55%
 
2.00
%
Summary of the most restrictive covenants for senior unsecured credit facility The Revolving Credit Facility also contains various corporate financial covenants. A summary of the most restrictive covenants is as follows:
 
 
 
Actual at
 
Covenant
 
September 30, 2019
Maximum leverage ratio (1)
60%
 
31.4%
Minimum fixed charge coverage ratio (2)
1.50x
 
3.74x
Secured recourse indebtedness
Less than 45% of Total Asset Value
 
18.7%
Unencumbered leverage ratio
60.0%
 
26.1%
Unencumbered implied debt service coverage ratio
1.2x
 
2.79x
_____________________________
(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.