XML 44 R32.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Debt (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2021
Debt Disclosure [Abstract] |
Schedule of Long-term Debt Instruments | The Company's debt consisted of the following (in thousands):
| December 31, 2021 |  | December 31, 2020
Senior Notes, net | $ | 986,942 |  |  | $ | 495,759 |
Revolver | 200,000 |  |  | 400,000 |
Term Loans, net | 815,004 |  |  | 1,168,304 |
Mortgage loans, net | 407,492 |  |  | 523,668 |
Debt, net | $ | 2,409,438 |  |  | $ | 2,587,731 |
Schedule of Senior Notes | The Company's senior notes consisted of the following (in thousands):
|  |  |  |  |  | Outstanding Borrowings at
|  | Interest Rate at December 31, 2021 |  | Maturity Date |  | December 31, 2021 |  | December 31, 2020
2029 Senior Notes |  | 4.00% |  | September 2029 |  | $ | 500,000 |  |  | $ | — |
2026 Senior Notes |  | 3.75% |  | July 2026 |  | 500,000 |  |  | — |
2025 Senior Notes |  | 6.00% |  | June 2025 |  | — |  |  | 495,759 |
|  |  |  |  |  | 1,000,000 |  |  | 495,759 |
Deferred financing costs, net |  |  |  |  |  | (13,058) |  |  | — |
Total senior notes, net |  |  |  |  |  | $ | 986,942 |  |  | $ | 495,759 |
The Company's $475.0 million senior notes due 2025 are referred to as the "2025 Senior Notes". The 2025 Senior Notes include $20.9 million at December 31, 2020 resulting from an acquisition related fair value adjustment on the 2025 Senior Notes. 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 (loss) on extinguishment of indebtedness, net, in the accompany consolidated statements of operations and comprehensive (loss) income.
Schedule of Debt Covenants | A summary of the various restrictive covenants for the 2029 Senior Notes and 2026 Senior Notes are as follows:
|  | Covenant |  |
Maintenance Covenant |  |  |  |
Unencumbered Asset to Unencumbered Debt Ratio |  | > 150.0% |  |
Incurrence Covenants |  |  |  |
Consolidated Indebtedness less than Adjusted Total Assets |  | < .65x |  |
Consolidated Secured Indebtedness less than Adjusted Total Assets |  | < .45x |  |
Interest Coverage Ratio |  | > 1.5x |  |
The Revolver and Term Loans are subject to various financial covenants. A summary of the most restrictive covenants is as follows:
|  | Covenant |  | Compliance
Leverage ratio (1) |  | ≤ 7.0x |  | N/A (3)
Fixed charge coverage ratio (2) |  | ≥ 1.5x |  | N/A (3)
Secured indebtedness ratio |  | ≤ 45.0% |  | N/A (3)
Unencumbered indebtedness ratio |  | ≤ 60.0% |  | N/A (3)
Unencumbered debt service coverage ratio |  | ≥ 2.0x |  | N/A (3)
Maintain minimum liquidity level |  | ≥ $150.0 million |  | Yes
(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, as described below.
Schedule of unsecured credit agreements | The Company's unsecured credit agreements consisted of the following (in thousands):
|  |  |  |  |  | Outstanding Borrowings at
|  | Interest Rate at December 31, 2021 (1) |  | Maturity Date |  | December 31, 2021 |  | December 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 2023 |  | 100,000 |  |  | 150,000 |
$400 Million Term Loan Maturing 2025 |  | 4.45% |  | May 2025 |  | 400,000 |  |  | 400,000 |
|  |  |  |  |  | 1,018,662 |  |  | 1,575,000 |
Deferred financing costs, net (6) |  |  |  |  |  | (3,658) |  |  | (6,696) |
Total Revolver and Term Loans, net |  |  |  |  |  | $ | 1,015,004 |  |  | $ | 1,568,304 |
(1)Interest rate at December 31, 2021 gives effect to interest rate hedges. (2)At December 31, 2021 and 2020, there was $400.0 million and $200.0 million of remaining capacity on the Revolver, respectively. The Company has the ability to further increase the total capacity on the Revolver to $750.0 million, subject to certain lender requirements. 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. In February 2022, the Company paid off the outstanding balance on the Revolver. (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 $2.9 million and $4.1 million as of December 31, 2021 and 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 mortgage loans | The Company's mortgage loans consisted of the following (in thousands):
|  |  |  |  |  |  |  |  |  | Principal balance at
|  | Number of Assets Encumbered |  | Interest Rate at December 31, 2021 (1) |  | Maturity Date |  |  |  | December 31, 2021 |  | December 31, 2020
Mortgage loan (2) |  | 7 |  | 3.30% |  | April 2022 |  | (7) |  | $ | 200,000 |  |  | $ | 200,000 |
Mortgage loan (2) |  | 3 |  | 2.53% |  | April 2024 |  | (7) |  | 96,000 |  |  | 96,000 |
Mortgage loan (2) |  | 4 |  | 2.84% |  | April 2024 |  | (7) |  | 85,000 |  |  | 85,000 |
Mortgage loan (3) |  | 1 |  | 5.06% |  | January 2029 |  |  |  | 27,554 |  |  | — |
Mortgage loan (4) |  | 1 |  | —% |  | June 2022 |  | (8) |  | — |  |  | 30,332 |
Mortgage loan (5) |  | 3 |  | —% |  | October 2022 |  | (8) |  | — |  |  | 86,775 |
Mortgage loan (6) |  | 1 |  | —% |  | October 2022 |  | (9) |  | — |  |  | 27,972 |
|  | 20 |  |  |  |  |  |  |  | 408,554 |  |  | 526,079 |
Deferred financing costs, net |  |  |  |  |  |  |  |  |  | (1,062) |  |  | (2,411) |
Total mortgage loans, net |  |  |  |  |  |  |  |  |  | $ | 407,492 |  |  | $ | 523,668 |
(1)Interest rate at December 31, 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 $2.6 million at December 31, 2021 related to a fair value adjustment on a mortgage loan that was assumed in connection with a hotel property acquisition in December 2021. (4)Includes $0.3 million at December 31, 2020 related to a fair value adjustment on a mortgage loan. (5)Includes $0.9 million at December 31, 2020 related to a fair value adjustments on the mortgage loans. (6)Includes $0.3 million at December 31, 2020 related to a fair value adjustment on the mortgage loan. (7)The mortgage loan provides two one year extension options. (8)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. (9)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.
Components of interest expense | The components of the Company's interest expense consisted of the following (in thousands):
| For the year ended December 31,
| 2021 |  | 2020 |  | 2019
Senior Notes | $ | 34,079 |  |  | $ | 23,767 |  |  | $ | 23,793 |
Revolver and Term Loans | 53,097 |  |  | 55,413 |  |  | 42,272 |
Mortgage loans | 13,306 |  |  | 16,949 |  |  | 20,754 |
Amortization of deferred financing costs | 5,884 |  |  | 4,416 |  |  | 4,100 |
Undesignated interest rate swaps | — |  |  | (376) |  |  | 376 |
Total interest expense | $ | 106,366 |  |  | $ | 100,169 |  |  | $ | 91,295 |
Future minimum principal payments | As of December 31, 2021, the future minimum principal payments were as follows (in thousands):
2022 | $ | 200,000 |
2023 | 418,662 |
2024 | 381,000 |
2025 | 400,000 |
2026 | 500,000 |
Thereafter | 525,000 |
Total (1) | $ | 2,424,662 |
(1)Excludes a $2.6 million fair value adjustment on debt.

X
- Definition Schedule of Debt Covenants + References No definition available. + Details
Name: | rlj_ScheduleOfDebtCovenantsTableTextBlock
Namespace Prefix: | rlj_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of mortgage loans. + References No definition available. + Details
Name: | rlj_ScheduleOfMortgageLoansTableTextBlock
Namespace Prefix: | rlj_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition [Table Text Block] for Schedule of Senior Notes [Table] + References No definition available. + Details
Name: | rlj_ScheduleofSeniorNotesTableTextBlock
Namespace Prefix: | rlj_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of interest income and expense, including, but not limited to, interest income and expense from investments, loans, and securities. + References No definition available. + Details
Name: | us-gaap_InterestIncomeAndInterestExpenseDisclosureTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.22) -URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 3 -Subparagraph (SX 210.12-04(a)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e24072-122690 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 835 -SubTopic 30 -Section 45 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=124435984&loc=d3e28541-108399 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=123467817&loc=d3e21506-112644 Reference 5: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 55 -Paragraph 69B -URI http://asc.fasb.org/extlink&oid=123466577&loc=SL123495735-112612 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 835 -SubTopic 30 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=124435984&loc=d3e28551-108399 Reference 7: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 20 -Section 55 -Paragraph 69E -URI http://asc.fasb.org/extlink&oid=123466577&loc=SL123495743-112612 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=123467817&loc=d3e21521-112644 Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=123467817&loc=d3e21538-112644 Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 470 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=123599511&loc=d3e64711-112823 Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 835 -SubTopic 30 -Section 55 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400 Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=123467817&loc=d3e21475-112644 + Details
Name: | us-gaap_ScheduleOfDebtInstrumentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of information pertaining to short-term and long-debt instruments or arrangements, including but not limited to identification of terms, features, collateral requirements and other information necessary to a fair presentation. + References No definition available. + Details
Name: | us-gaap_ScheduleOfDebtTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of maturity and sinking fund requirement for long-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=123465755&loc=d3e1835-112601 + Details
Name: | us-gaap_ScheduleOfMaturitiesOfLongTermDebtTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration