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Debt (Tables)
 9 Months Ended
Sep. 30, 2023
Debt Disclosure [Abstract]  
Schedule of Long Term Debt
The following table sets forth information regarding the Company’s debt as of September 30, 2023 and December 31, 2022 (dollars in thousands):
Principal Balance as of
Loan
Interest Rate as of September 30, 2023
Maturity DateSeptember 30, 2023December 31, 2022
Courtyard New York Manhattan/Midtown East mortgage loan4.40%August 2024$74,808 $76,153 
Worthington Renaissance Fort Worth Hotel mortgage loan3.66%May 202574,210 75,625 
Hotel Clio mortgage loan4.33%July 202556,443 57,469 
Westin Boston Seaport District mortgage loan4.36%November 2025175,164 178,487 
Unamortized debt issuance costs(711)(1,079)
Total mortgage debt, net of unamortized debt issuance costs379,914 386,655 
Unsecured term loan
 SOFR + 1.35%
January 2028500,000 500,000 
Unsecured term loan
SOFR + 1.35%
January 2025 (1)
300,000 300,000 
Unamortized debt issuance costs(663)(862)
Unsecured term loans, net of unamortized debt issuance costs799,337 799,138 
Senior unsecured credit facility
SOFR + 1.40%
September 2026 (1)
— — 
Total debt, net of unamortized debt issuance costs$1,179,251 $1,185,793 
Weighted-Average Interest Rate (2)
5.07% 
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(1)Maturity date may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions.
(2)Weighted-average interest rate as of September 30, 2023 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, 2023
Maximum leverage ratio (1)
60%
28.3%
Minimum fixed charge coverage ratio (2)
1.50x
3.08x
Secured recourse indebtedness
Less than 45% of Total Asset Value
11.0%
Unencumbered leverage ratio
60%
28.4%
Unencumbered implied debt service coverage ratio
1.20x
2.65x
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(1)Leverage ratio is net indebtedness, as defined in the Credit Agreement, 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 Agreement as interest expense, all regularly scheduled principal payments and payments on capitalized lease obligations, for the same most recently ending 12-month period.
Schedule of Components of Interest Expense
The components of the Company's interest expense consisted of the following (in thousands):

Three Months Ended September 30,Nine Months Ended September 30,
 2023202220232022
Mortgage debt interest$4,130 $6,233 $12,331 $18,322 
Unsecured term loan interest11,019 4,104 31,867 11,568 
Credit facility interest and unused fees311 1,863 941 5,015 
Amortization of debt issuance costs and debt premium513 652 1,540 1,963 
Interest rate swap mark-to-market— (3,780)2,033 (14,002)
$15,973 $9,072 $48,712 $22,866