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Debt (Tables)
 3 Months Ended
Mar. 31, 2025
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
LoanInterest RateMaturity DateMarch 31, 2025December 31, 2024
Worthington Renaissance Fort Worth Hotel mortgage loan3.66%May 2025$71,254 $71,766 
Hotel Clio mortgage loan4.33%July 202554,279 54,657 
Westin Boston Seaport District mortgage loan4.36%November 2025168,161 169,385 
Unsecured term loan
 SOFR + 1.35% (1)
January 2028500,000 500,000 
Unsecured term loan
SOFR + 1.35% (2)
January 2026300,000 300,000 
Senior unsecured credit facility
SOFR + 1.40%
September 2026 (3)
— — 
Total debt1,093,694 1,095,808 
Unamortized debt issuance costs (4)
(753)(514)
Debt, net of unamortized debt issuance costs$1,092,941 $1,095,294 
Weighted-Average Interest Rate (5)
5.08% 
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(1)Interest rate as of March 31, 2025 was 5.12%, which includes the effect of interest rate swaps.
(2)Interest rate as of March 31, 2025 was 5.76%.
(3)Maturity date may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions.
(4)Excludes debt issuance costs related to our senior unsecured credit facility, which are included within Prepaid and Other Assets on the accompanying consolidated balance sheets.
(5)Includes the effect of interest rate swaps. See Note 6 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 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 The Credit Agreement contains various financial covenants. A summary of the most significant covenants is as follows:
Actual at
Covenant March 31, 2025
Maximum leverage ratio (1)
60%
26.0%
Minimum fixed charge coverage ratio (2)
1.50x
3.12x
Secured recourse indebtedness
Less than 45% of Total Asset Value
8.6%
Maximum unencumbered leverage ratio
60%
28.4%
Minimum unencumbered implied debt service coverage ratio
1.20x
2.67x
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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 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 consist of the following (in thousands):

Three Months Ended March 31,
 20252024
Unsecured term loan interest$10,762 $11,387 
Mortgage debt interest3,092 4,034 
Credit facility interest and unused fees308 312 
Amortization of debt issuance costs535 513 
Finance lease expense(1)
461 — 
$15,158 $16,246 
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(1)In October 2024, we extended the term on one of our ground leases, and, as a result, the lease classification changed from an operating lease to a finance lease.