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Debt (Tables)
 9 Months Ended
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 DateSeptember 30, 2022December 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 loan3.99%
January 2023 (3)
54,075 55,913 
The Lodge at Sonoma Resort mortgage loan3.96%
April 2023 (2)
24,976 25,542 
Westin San Diego Bayview mortgage loan3.94%April 202357,312 58,600 
Courtyard New York Manhattan/Midtown East mortgage loan4.40%August 202476,595 77,882 
Worthington Renaissance Fort Worth Hotel mortgage loan3.66%May 202576,090 77,453 
Hotel Clio mortgage loan4.33%July 202557,806 58,789 
Westin Boston Seaport District mortgage loan4.36%November 2025179,577 182,755 
Unamortized debt issuance costs(1,282)(1,853)
Total mortgage debt, net of unamortized debt issuance costs567,369 578,651 
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 2028500,000 — 
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 costs799,071 398,572 
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% 
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(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 RatioApplicable Margin for Revolving LoansApplicable 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
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(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.