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Debt (Tables)
 6 Months Ended
Jun. 30, 2023
Debt Disclosure [Abstract]  
Schedule of Debt
The Company's debt consisted of the following (in thousands):
June 30, 2023December 31, 2022
Senior Notes, net$990,489 $989,307 
Revolver— — 
Term Loans, net820,563 820,536 
Mortgage loans, net407,685 407,712 
Debt, net$2,218,737 $2,217,555 
Schedule of Senior Notes
The Company's senior notes (collectively, the "Senior Notes") consisted of the following (dollars in thousands):
Carrying Value at
Interest RateMaturity DateJune 30, 2023December 31, 2022
2029 Senior Notes (1)4.00%September 2029$500,000 $500,000 
2026 Senior Notes (1)3.75%July 2026500,000 500,000 
1,000,000 1,000,000 
Deferred financing costs, net(9,511)(10,693)
Total senior notes, net$990,489 $989,307 
(1)Requires payment of interest only through maturity.
Schedule Of Debt Instrument Covenants
A summary of the various restrictive covenants for the 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
< .65x
Yes
Consolidated Secured Indebtedness less than Adjusted Total Assets
< .45x
Yes
Interest Coverage Ratio
> 1.5x
Yes
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)
<= 7.25x
Yes
Fixed charge coverage ratio (2)
>= 1.50x
Yes
Secured indebtedness ratio
<= 45.0%
Yes
Unencumbered indebtedness ratio
<= 60.0%
Yes
Unencumbered debt service coverage ratio
>= 2.00x
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.
Schedule of Revolver and Term Loans
The Company's unsecured credit agreements consisted of the following (dollars in thousands):
Carrying Value at
Interest Rate at June 30, 2023 (1)Maturity DateJune 30, 2023December 31, 2022
Revolver (2)—%May 2027$— $— 
$400 Million Term Loan Maturing 2023 (3)
—%—— 52,261 
$400 Million Term Loan Maturing 2024 (4)
—%—— 151,683 
$225 Million Term Loan Maturing 2023 (3)
—%—— 41,745 
$225 Million Term Loan Maturing 2024 (4)
—%—— 72,973 
$400 Million Term Loan Maturing 2025
3.43%May 2025400,000 400,000 
$200 Million Term Loan Maturing 2026 (5)
3.50%January 2026 (6)200,000 105,000 
$225 Million Term Loan Maturing 2026
3.02%May 2026 (6)225,000 — 
825,000 823,662 
Deferred financing costs, net (7)(4,437)(3,126)
Total Revolver and Term Loans, net$820,563 $820,536 
 
(1)Interest rate at June 30, 2023 gives effect to interest rate hedges.
(2)There was $600.0 million of remaining capacity on the Revolver at both June 30, 2023 and December 31, 2022. The Company has the ability to extend the maturity date for an additional one-year period or up to two six-month periods ending May 2028 if certain conditions are satisfied.
(3)In January 2023, the Company received the remaining $95.0 million in proceeds on the $200 Million Term Loan Maturing 2026 and utilized these proceeds to pay off these Term Loans.
(4)In May 2023, the Company entered into the $225 Million Term Loan Maturing 2026 and utilized the proceeds to pay off these Term Loans.
(5)In January 2023, the Company received the remaining $95.0 million in proceeds on this Term Loan.
(6)This Term Loan includes two one-year extension options. The exercise of the extension options will be at the Company's discretion, subject to certain conditions.
(7)Excludes $6.3 million and $1.7 million as of June 30, 2023 and December 31, 2022, respectively, related to deferred financing costs on the Revolver, which are included in prepaid expense and other assets in the accompanying consolidated balance sheets.
Schedule of mortgage loans
The Company's mortgage loans consisted of the following (dollars in thousands):
Carrying Value at
Number of Assets EncumberedInterest Rate at June 30, 2023 Maturity DateJune 30, 2023December 31, 2022
Mortgage loan (1)75.94%(3)April 2024(4)$200,000 $200,000 
Mortgage loan (1)34.95%(3)April 2024(5)96,000 96,000 
Mortgage loan (1)45.51%(3)April 2024(5)85,000 85,000 
Mortgage loan (2)15.06%January 202927,013 27,193 
15408,013 408,193 
Deferred financing costs, net(328)(481)
Total mortgage loans, net$407,685 $407,712 

(1)The hotels encumbered by the mortgage loan are cross-collateralized. Requires payments of interest only through maturity.
(2)Includes $2.0 million and $2.2 million at June 30, 2023 and December 31, 2022, respectively, related to a fair value adjustment on this mortgage loan.
(3)Interest rate at June 30, 2023 gives effect to interest rate hedges.
(4)In April 2023, the Company exercised its final extension option to extend the maturity on this mortgage loan to April 2024.
(5)This mortgage loan provides two one-year extension options.
Schedule of Interest Expense Components The components of the Company's interest expense consisted of the following (in thousands):
For the three months ended June 30,For the six months ended June 30,
2023202220232022
Senior Notes$9,688 $9,688 $19,375 $19,431 
Revolver and Term Loans7,266 9,136 15,810 19,104 
Mortgage loans5,616 3,329 9,559 6,539 
Amortization of deferred financing costs1,491 1,417 2,965 3,101 
Non-cash interest expense related to interest rate hedges482 285 964 241 
Total interest expense$24,543 $23,855 $48,673 $48,416