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Debt
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Debt Debt
The following table sets forth information regarding the Company’s debt (dollars in thousands):
Principal Balance
as of December 31,
LoanInterest Rate as of December 31, 2023Maturity Date20232022
Courtyard New York Manhattan / Midtown East mortgage loan4.40%
August 2024
74,346 76,153 
Worthington Renaissance Fort Worth Hotel mortgage loan3.66%
May 2025
73,727 75,625 
Hotel Clio mortgage loan4.33%
July 2025
56,091 57,469 
Westin Boston Seaport District mortgage loan4.36%
November 2025
174,025 178,487 
Unsecured term loan
SOFR + 1.35% (1)
January 2028
500,000 500,000 
Unsecured term loan
SOFR + 1.35% (1)
January 2025 (2)
300,000 300,000 
Senior unsecured credit facility
SOFR + 1.40%
September 2026 (2)
— — 
Total debt1,178,189 1,187,734 
Unamortized debt issuance costs (3)
(1,184)(1,941)
Debt, net of unamortized debt issuance costs$1,177,005 $1,185,793 
Weighted-Average Interest Rate (4)
5.22% 
_____________
(1)Interest rate as of December 31, 2023 was 6.81%.
(2)Maturity date may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions.
(3)Excludes debt issuance costs related to our senior unsecured credit facility, which are included within Other Assets on the accompanying consolidated balance sheet.
(4)Weighted-average interest rate as of December 31, 2023 includes effect of interest rate swaps.

As of December 31, 2023, the aggregate debt maturities for our mortgage debt and unsecured term loans, assuming all extension options available in our debt agreements are exercised, are as follows (in thousands):

2024$82,381 
2025295,808 
2026300,000 
2027— 
2028500,000 
Thereafter— 
$1,178,189 

Mortgage Debt

We have incurred limited recourse, property specific mortgage debt secured by certain of our hotels. In the event of default, the lender may only foreclose on the pledged assets; however, in the event of fraud, misapplication of funds or other customary recourse provisions, the lender may seek payment from us. As of December 31, 2023, four of our 36 hotel properties were secured by mortgage debt. We have one mortgage loan that matures within one year, which has a principal balance of $74.3 million as of December 31, 2023. We intend to repay this mortgage loan using cash on hand.

Our mortgage debt contains certain property specific covenants and restrictions, including minimum debt service coverage
ratios or debt yields that trigger “cash trap” provisions, as well as restrictions on incurring additional debt without lender consent. Such cash trap provisions are triggered when the hotel’s operating results fall below a certain debt service coverage ratio or debt yield. When these provisions are triggered, all of the excess cash flow generated by the hotel is deposited directly into cash management accounts for the benefit of our lenders until a specified debt service coverage ratio or debt yield is reached and maintained for a certain period of time. Such provisions do not provide the lender the right to accelerate repayment
of the underlying debt. As of December 31, 2022, we had $2.9 million held in cash traps, which is included within restricted cash on the accompanying balance sheet. As of December 31, 2023, all cash traps had been released.

Senior Unsecured Credit Facility and Unsecured Term Loans
Prior to September 27, 2022, we were party to credit agreements that provided for a $400 million senior unsecured credit facility (the “Revolving Credit Facility”), which was scheduled to mature in July 2023, a $350 million unsecured term loan that was scheduled to mature in July 2024 (the “Facility Term Loan”) and a $50 million unsecured term loan that was scheduled to mature in October 2023 (the “2023 Term Loan”). The interest rate on the Revolving Credit Facility and unsecured term loans was based upon LIBOR, plus an applicable margin based upon the Company’s leverage ratio.

On September 27, 2022, we entered into a Sixth Amended and Restated Credit Agreement (the “Amended Credit Agreement”) that provides us with a $400 million senior unsecured revolving credit facility and two term loan facilities in the aggregate amount of $800 million. The revolving credit facility matures on September 27, 2026, which we may extend for an additional year upon the payment of applicable fees and satisfaction of certain standard conditions. The term loan consist of a $500 million term loan that matures on January 3, 2028, and a $300 million term loan that matures January 3, 2025. The maturity date of the $300 million term loan may be extended for an additional year upon the payment of applicable fees and satisfaction of certain standard conditions. We have the right to increase the aggregate amount of the facilities to $1.4 billion upon the satisfaction of certain standard conditions.

We utilized the proceeds from the term loans under the Amended Credit Agreement to repay the Facility Term Loan, the 2023 Term Loan, $150 million that was outstanding on our Revolving Credit Facility, and our mortgage loans that were scheduled to mature in 2023. We recognized a $9.7 million loss on early extinguishment of debt related to the write-off of certain unamortized debt issuance costs and fees paid to the lenders in consideration for the Amended Credit Agreement.

Interest is paid on the periodic advances on the revolving credit facility and amounts outstanding on the term loans at varying rates, based upon the adjusted Secured Overnight Financing Rate (“SOFR”), as defined in the Amended Credit Agreement, plus an 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%

The Amended Credit Agreement contains various financial covenants. A summary of the most significant covenants are as follows:
Actual at
Covenant December 31, 2023
Maximum leverage ratio (1)
60%
29.3%
Minimum fixed charge coverage ratio (2)
1.50x
2.93x
Secured recourse indebtedness
Less than 45% of Total Asset Value
11.4%
Unencumbered leverage ratio
60.0%
30.0%
Unencumbered implied debt service coverage ratio
1.20x
2.49x
_____________________________
(1)Leverage ratio is net indebtedness, as defined in the Amended Credit Agreement, divided by total asset value, as defined in the Amended 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 Amended Credit Agreement as EBITDA less FF&E reserves, for the most recently ending 12 months, to fixed charges, which is defined in the Amended 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.

The components of the Company's interest expense consisted of the following (in thousands):
Year Ended December 31,
 202320222021
Mortgage debt interest$16,436 $23,276 $24,992 
Unsecured term loan interest43,294 21,153 14,794 
Credit facility interest and unused fees1,256 5,279 2,400 
Amortization of debt issuance costs and debt premium2,053 2,489 2,547 
Interest rate swap mark-to-market2,033 (13,914)(7,690)
$65,072 $38,283 $37,043