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Debt (Tables) | 9 Months Ended
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Sep. 30, 2022
Debt Disclosure [Abstract] |
Schedule of Long Term Debt | The following table sets forth information regarding the Company’s debt as of September 30, 2022 and December 31, 2021 (dollars in thousands):
|  |  |  |  |  | Principal Balance as of
Loan |  | Interest Rate as of September 30, 2022 |  | Maturity Date |  | September 30, 2022 |  | December 31, 2021
Salt Lake City Marriott Downtown at City Creek mortgage loan |  | LIBOR + 3.25% (1) |  | January 2023 (2) |  | $ | 42,220 |  |  | $ | 43,570 |
Westin Washington, D.C. City Center mortgage loan |  | 3.99% |  | January 2023 (3) |  | 54,075 |  |  | 55,913 |
The Lodge at Sonoma Resort mortgage loan |  | 3.96% |  | April 2023 (2) |  | 24,976 |  |  | 25,542 |
Westin San Diego Bayview mortgage loan |  | 3.94% |  | April 2023 |  | 57,312 |  |  | 58,600 |
Courtyard New York Manhattan/Midtown East mortgage loan |  | 4.40% |  | August 2024 |  | 76,595 |  |  | 77,882 |
Worthington Renaissance Fort Worth Hotel mortgage loan |  | 3.66% |  | May 2025 |  | 76,090 |  |  | 77,453 |
Hotel Clio mortgage loan |  | 4.33% |  | July 2025 |  | 57,806 |  |  | 58,789 |
Westin Boston Seaport District mortgage loan |  | 4.36% |  | November 2025 |  | 179,577 |  |  | 182,755 |
Unamortized debt issuance costs |  |  |  |  |  | (1,282) |  |  | (1,853) |
Total mortgage debt, net of unamortized debt issuance costs |  |  |  |  |  | 567,369 |  |  | 578,651 |
Unsecured term loan |  | LIBOR + 1.45% (4) (5) |  | October 2023 (6) |  | — |  |  | 50,000 |
Unsecured term loan |  | LIBOR + 1.45% (4) (5) |  | July 2024 (7) |  | — |  |  | 350,000 |
Unsecured term loan |  | SOFR + 1.45% |  | January 2028 |  | 500,000 |  |  | — |
Unsecured term loan |  | SOFR + 1.45% |  | January 2025 (8) |  | 300,000 |  |  | — |
Unamortized debt issuance costs |  |  |  |  |  | (929) |  |  | (1,428) |
Unsecured term loans, net of unamortized debt issuance costs |  |  |  |  |  | 799,071 |  |  | 398,572 |
Senior unsecured credit facility |  | SOFR + 1.50% |  | September 2026 (8) |  | — |  |  | 90,000 |
Total debt, net of unamortized debt issuance costs |  |  |  |  |  | $ | 1,366,440 |  |  | $ | 1,067,223 |
Weighted-Average Interest Rate (9) |  | 4.26% |  |  |  |  |  |
_______________________ (1)LIBOR is subject to a floor of 1.0%. (2)The loan was prepaid on November 1, 2022. (3)The loan was prepaid on October 6, 2022. (4)Prior to August 1, 2022, the applicable margin was 2.40%. (5)LIBOR is subject to a floor of 0.25%. (6)The loan was prepaid on September 28, 2022. (7)The loan was prepaid on September 27, 2022. (8)Maturity date may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions. (9)Weighted-average interest rate as of September 30, 2022 includes effect of interest rate swaps.
Schedule of Line of Credit Facility Leverage and Applicable Margin | The applicable margin is based upon our leverage ratio, as follows:
Leverage Ratio |  | Applicable Margin for Revolving Loans |  | Applicable Margin for Term Loans
Less than 30% |  | 1.40% |  | 1.35%
Greater than or equal to 30% but less than 35% |  | 1.45% |  | 1.40%
Greater than or equal to 35% but less than 40% |  | 1.50% |  | 1.45%
Greater than or equal to 40% but less than 45% |  | 1.60% |  | 1.55%
Greater than or equal to 45% but less than 50% |  | 1.80% |  | 1.75%
Greater than or equal to 50% but less than 55% |  | 1.95% |  | 1.85%
Greater than or equal to 55% |  | 2.25% |  | 2.20%
Schedule of the Most Significant Covenants | A summary of the most significant covenants is as follows:
|  |  |  | Actual at
| Covenant |  |  | September 30, 2022
Maximum leverage ratio (1) | 60% |  |  | 29.6%
Minimum fixed charge coverage ratio (2) | 1.50x |  |  | 2.99x
Secured recourse indebtedness | Less than 45% of Total Asset Value |  |  | 17.9%
Unencumbered leverage ratio | 60.0% |  |  | 33.4%
Unencumbered implied debt service coverage ratio | 1.20x |  |  | 2.19x
_____________________________ (1)Leverage ratio is net indebtedness, as defined in the Credit Agreements, divided by total asset value, defined in the Credit Agreements 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 Agreements as EBITDA less FF&E reserves, for the most recently ending 12 months, to fixed charges, which is defined in the Credit Agreements as interest expense, all regularly scheduled principal payments and payments on capitalized lease obligations, for the same most recently ending 12-month period.

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