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Debt (Tables) | 9 Months Ended
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Sep. 30, 2024
Debt Disclosure [Abstract] |
Schedule of Long Term Debt | The following table sets forth information regarding the Company’s debt (dollars in thousands):
|  |  |  |  |  | Principal Balance as of
Loan |  | Interest Rate |  | Maturity Date |  | September 30, 2024 |  | December 31, 2023
Courtyard New York Manhattan/Midtown East mortgage loan |  | 4.40% |  | August 2024 |  | $ | — |  |  | $ | 74,346 |
Worthington Renaissance Fort Worth Hotel mortgage loan |  | 3.66% |  | May 2025 |  | 72,267 |  |  | 73,727 |
Hotel Clio mortgage loan |  | 4.33% |  | July 2025 |  | 55,025 |  |  | 56,091 |
Westin Boston Seaport District mortgage loan |  | 4.36% |  | November 2025 |  | 170,574 |  |  | 174,025 |
Unsecured term loan |  | SOFR + 1.35% (1) |  | January 2028 |  | 500,000 |  |  | 500,000 |
Unsecured term loan |  | SOFR + 1.35% (2) |  | January 2026 (3) |  | 300,000 |  |  | 300,000 |
Senior unsecured credit facility |  | SOFR + 1.40% |  | September 2026 (4) |  | — |  |  | — |
Total debt |  |  |  |  |  | 1,097,866 |  |  | 1,178,189 |
Unamortized debt issuance costs (5) |  |  |  |  |  | (651) |  |  | (1,184) |
Debt, net of unamortized debt issuance costs |  |  |  |  |  | $ | 1,097,215 |  |  | $ | 1,177,005 |
Weighted-Average Interest Rate (6) |  | 5.60% |  |  |  |  |  |
_______________________ (1)Interest rate as of September 30, 2024 was 5.93%, which includes the effect of interest rate swaps. (2)Interest rate as of September 30, 2024 was 6.31%. (3)In September 2024, we exercised our option to extend the maturity by an additional year to January 2026. (4)Maturity date may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions. (5)Excludes debt issuance costs related to our senior unsecured credit facility, which are included within Prepaid and Other Assets on the accompanying consolidated balance sheet. (6)Includes the effect of interest rate swaps. See Note 5 for additional disclosures on 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 | The Credit Agreement contains various financial covenants. A summary of the most significant covenants is as follows:
|  |  |  | Actual at
| Covenant |  |  | September 30, 2024
Maximum leverage ratio (1) | 60% |  |  | 27.7%
Minimum fixed charge coverage ratio (2) | 1.50x |  |  | 2.90x
Secured recourse indebtedness | Less than 45% of Total Asset Value |  |  | 9.0%
Maximum unencumbered leverage ratio | 60% |  |  | 28.6%
Minimum unencumbered implied debt service coverage ratio | 1.20x |  |  | 2.64x
_____________________________ (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 recent trailing 12 month period, 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 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,
|  | 2024 |  | 2023 |  | 2024 |  | 2023
Unsecured term loan interest |  | $ | 12,665 |  |  | $ | 11,019 |  |  | $ | 35,419 |  |  | $ | 31,867 |
Mortgage debt interest |  | 3,527 |  |  | 4,130 |  |  | 11,572 |  |  | 12,331 |
Credit facility interest and unused fees |  | 315 |  |  | 311 |  |  | 938 |  |  | 941 |
Amortization of debt issuance costs and debt premium |  | 479 |  |  | 513 |  |  | 1,505 |  |  | 1,540 |
Interest rate swap mark-to-market |  | — |  |  | — |  |  | — |  |  | 2,033 |
|  | $ | 16,986 |  |  | $ | 15,973 |  |  | $ | 49,434 |  |  | $ | 48,712 |

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