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Debt (Tables)
 9 Months Ended
Sep. 30, 2021
Debt Disclosure [Abstract]  
Schedule of Debt
The Company's debt consisted of the following (in thousands):
September 30, 2021December 31, 2020
2029 Senior Notes, net$494,421 $— 
2026 Senior Notes, net492,476 — 
2025 Senior Notes, net— 495,759 
Revolver200,000 400,000 
Term Loans, net814,659 1,168,304 
Mortgage loans, net379,718 523,668 
Debt, net$2,381,274 $2,587,731 
Schedule of Senior Notes
The Company's $475.0 million senior notes due 2025 are referred to as the "2025 Senior Notes." The Company's 2025 Senior Notes consisted of the following (in thousands):
Outstanding Borrowings at
Interest RateMaturity DateSeptember 30, 2021December 31, 2020
2025 Senior Notes (1) (2) 6.00%June 2025$— $495,759 
(1)In September 2021, the Company redeemed the 2025 Senior Notes and paid a redemption premium of $9.5 million using the net proceeds from the issuance of the 2029 Senior Notes. The redemption premium is included in the gain on extinguishment of indebtedness, net, in the accompany consolidated statements of operations and comprehensive loss.
(2)The 2025 Senior Notes included $20.9 million at December 31, 2020 related to acquisition related fair value adjustments on the 2025 Senior Notes. As of the date of redemption of the 2025 Senior Notes, the carrying value of the acquisition related fair value adjustment was $17.7 million. As a result of the redemption, this amount was written off and is included in the gain on extinguishment of indebtedness, net, in the accompany consolidated statements of operations and comprehensive loss.
Schedule of Revolver and Term Loans
The Company's credit agreements consisted of the following (in thousands):
Outstanding Borrowings at
Interest Rate at September 30, 2021 (1)Maturity DateSeptember 30, 2021December 31, 2020
Revolver (2)3.53%May 2024$200,000 $400,000 
$400 Million Term Loan Maturing 2023 (3)4.73%January 2023 (7)203,944 400,000 
$225 Million Term Loan Maturing 2023 (4)4.72%January 2023 (8)114,718 225,000 
$150 Million Term Loan Maturing 2023 (5)4.18%June 2023100,000 150,000 
$400 Million Term Loan Maturing 20254.45%May 2025400,000 400,000 
1,018,662 1,575,000 
Deferred financing costs, net (6)(4,003)(6,696)
Total Revolver and Term Loans, net$1,014,659 $1,568,304 
 
(1)Interest rate at September 30, 2021 gives effect to interest rate hedges.
(2)At September 30, 2021 and December 31, 2020, there was $400.0 million and $200.0 million of remaining capacity on the Revolver, respectively. The Company also has the ability to extend the maturity date for an additional one year period ending May 2025 if certain conditions are satisfied.
(3)The Company utilized $196.1 million of the proceeds from the issuance of the 2026 Senior Notes to reduce the outstanding principal balance of this term loan.
(4)The Company utilized $110.3 million of the proceeds from the issuance of the 2026 Senior Notes to reduce the outstanding principal balance of this term loan.
(5)Pursuant to the terms under the Company's credit agreements, the Company utilized $20.8 million of the proceeds from hotel dispositions and $29.2 million of the proceeds from the issuance of the 2026 Senior Notes to reduce the outstanding principal balance of this term loan. In addition, the Company has the option to extend the maturity one additional year to June 2024.
(6)Excludes $3.2 million and $4.1 million as of September 30, 2021 and December 31, 2020, respectively, related to deferred financing costs on the Revolver, which are included in prepaid expense and other assets in the accompanying consolidated balance sheets.
(7)In September 2021, the Company amended this term loan to include a one-year extension option for approximately $151.7 million of the principal balance. The exercise of the one-year extension option will be at the Company's discretion, subject to certain conditions.
(8)In September 2021, the Company amended this term loan to include a one-year extension option for approximately $73.0 million of the principal balance. The exercise of the one-year extension option will be at the Company's discretion, subject to certain conditions.
Schedule Of Debt Instrument Covenants
A summary of the various restrictive covenants for the 2029 Senior Notes are as follows:
CovenantCompliance
Maintenance Covenant
Unencumbered Asset to Unencumbered Debt Ratio> 150.0%Yes
Incurrence Covenants
Consolidated Indebtedness less than Adjusted Total Assets< .65xYes
Consolidated Secured Indebtedness less than Adjusted Total Assets< .45xYes
Interest Coverage Ratio> 1.5xNo
A summary of the various restrictive covenants for the 2026 Senior Notes are as follows:
CovenantCompliance
Maintenance Covenant
Unencumbered Asset to Unencumbered Debt Ratio> 150.0%Yes
Incurrence Covenants
Consolidated Indebtedness less than Adjusted Total Assets< .65xYes
Consolidated Secured Indebtedness less than Adjusted Total Assets< .45xYes
Interest Coverage Ratio> 1.5xNo
The Revolver and Term Loans are subject to various financial covenants. A summary of the most restrictive covenants is as follows:
CovenantCompliance
Leverage ratio (1)<= 7.00xN/A (3)
Fixed charge coverage ratio (2)>= 1.50xN/A (3)
Secured indebtedness ratio<= 45.0%N/A (3)
Unencumbered indebtedness ratio<= 60.0%N/A (3)
Unencumbered debt service coverage ratio>= 2.00xN/A (3)
Maintain minimum liquidity level>= $150.0 millionYes

(1)Leverage ratio is net indebtedness, as defined in the Revolver and Term Loan agreements, to corporate earnings before interest, taxes, depreciation, and amortization ("EBITDA"), as defined in the Revolver and Term Loan agreements.
(2)Fixed charge coverage ratio is Adjusted EBITDA, generally defined in the Revolver and Term Loan agreements as EBITDA less furniture, fixtures and equipment ("FF&E") reserves, to fixed charges, which is generally defined in the Revolver and Term Loan agreements as interest expense, all regularly scheduled principal payments, preferred dividends paid, and cash taxes paid.
(3)The Company is not currently required to comply with these covenants, see details below.
Schedule of mortgage loans
The Company's mortgage loans consisted of the following (in thousands):
Outstanding Borrowings at
Number of Assets EncumberedInterest Rate at September 30, 2021 (1)Maturity DateSeptember 30, 2021December 31, 2020
Mortgage loan (2)73.30 %April 2022(6)$200,000 $200,000 
Mortgage loan (2)32.53 %April 2024(6)96,000 96,000 
Mortgage loan (2)42.84 %April 2024(6)85,000 85,000 
Mortgage loan (3)1— June 2022(7)— 30,332 
Mortgage loan (4)3— October 2022(7)— 86,775 
Mortgage loan (5)1— October 2022(8)— 27,972 
19381,000 526,079 
Deferred financing costs, net(1,282)(2,411)
Total mortgage loans, net$379,718 $523,668 

(1)Interest rate at September 30, 2021 gives effect to interest rate hedges.
(2)The hotels encumbered by the mortgage loan are cross-collateralized. Requires payments of interest only through maturity.
(3)Includes $0.3 million at December 31, 2020 related to a fair value adjustment on a mortgage loan.
(4)Includes $0.9 million at December 31, 2020 related to fair value adjustments on the mortgage loans.
(5)Includes $0.3 million at December 31, 2020 related to a fair value adjustment on the mortgage loan.
(6)The mortgage loan provides two one year extension options.
(7)In June 2021, the Company paid off the mortgage loan(s) in full and paid approximately $5.7 million in prepayment premiums using the proceeds from the issuance of the 2026 Senior Notes.
(8)In July 2021, the Company paid off the mortgage loan in full and paid approximately a $1.3 million prepayment premium using the proceeds from the issuance of the 2026 Senior Notes.
Schedule of Interest Expense Components
The components of the Company's interest expense consisted of the following (in thousands):
For the three months ended September 30,For the nine months ended September 30,
2021202020212020
Senior Notes$11,747 $5,942 $24,374 $17,825 
Revolver and Term Loans11,079 15,730 42,281 39,087 
Mortgage loans2,580 4,368 10,328 13,483 
Amortization of deferred financing costs1,527 1,147 4,211 3,214 
Undesignated interest rate swaps— (1,203)— (18)
Total interest expense$26,933 $25,984 $81,194 $73,591