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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, 2021December 31, 2020
Senior Notes, net$986,942 $495,759 
Revolver 200,000 400,000 
Term Loans, net815,004 1,168,304 
Mortgage loans, net407,492 523,668 
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, 2021Maturity DateDecember 31, 2021December 31, 2020
2029 Senior Notes4.00%September 2029$500,000 $— 
2026 Senior Notes3.75%July 2026500,000 — 
2025 Senior Notes6.00%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:
CovenantCompliance
Leverage ratio (1)≤ 7.0xN/A (3)
Fixed charge coverage ratio (2) ≥ 1.5xN/A (3)
Secured indebtedness ratio≤ 45.0%N/A (3)
Unencumbered indebtedness ratio≤ 60.0%N/A (3)
Unencumbered debt service coverage ratio ≥ 2.0xN/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, 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 DateDecember 31, 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)(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 EncumberedInterest Rate at December 31, 2021 (1)Maturity DateDecember 31, 2021December 31, 2020
Mortgage loan (2)73.30%April 2022(7)$200,000 $200,000 
Mortgage loan (2)32.53%April 2024(7)96,000 96,000 
Mortgage loan (2)42.84%April 2024(7)85,000 85,000 
Mortgage loan (3)15.06%January 202927,554 — 
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 
20408,554 526,079 
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,
202120202019
Senior Notes$34,079 $23,767 $23,793 
Revolver and Term Loans53,097 55,413 42,272 
Mortgage loans13,306 16,949 20,754 
Amortization of deferred financing costs5,884 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 
2023418,662 
2024381,000 
2025400,000 
2026500,000 
Thereafter525,000 
Total (1)$2,424,662 
(1)Excludes a $2.6 million fair value adjustment on debt.