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Debt (Tables) | 12 Months Ended
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Dec. 31, 2024
Debt Disclosure [Abstract] |
Schedule of Long-term Debt Instruments | The Company's debt consisted of the following (in thousands):
| December 31, 2024 |  | December 31, 2023
Senior Notes, net | $ | 994,037 |  |  | $ | 991,672 |
Revolver Outstanding | 100,000 |  |  | — |
Term Loans, net | 918,707 |  |  | 821,443 |
Mortgage loans, net | 207,337 |  |  | 407,663 |
Debt, net | $ | 2,220,081 |  |  | $ | 2,220,778 |
Schedule of Senior Notes | The Company's senior notes (collectively, the "Senior Notes") consisted of the following (dollars in thousands):
|  |  |  |  |  | Carrying Value at
|  | Interest Rate at December 31, 2024 |  | Maturity Date |  | December 31, 2024 |  | December 31, 2023
2029 Senior Notes (1)(2) |  | 4.00% |  | September 2029 |  | $ | 500,000 |  |  | $ | 500,000 |
2026 Senior Notes (1)(3) |  | 3.75% |  | July 2026 |  | 500,000 |  |  | 500,000 |
|  |  |  |  |  | 1,000,000 |  |  | 1,000,000 |
Deferred financing costs, net |  |  |  |  |  | (5,963) |  |  | (8,328) |
Total senior notes, net |  |  |  |  |  | $ | 994,037 |  |  | $ | 991,672 |
(1)Requires payments of interest only through maturity. (2)The Company has the option to redeem its 4.00% senior notes due 2029 (the "2029 Senior Notes") at a redemption price of (i) 102.0% of the principal amount should such redemption occur before September 15, 2025, (ii) 101.0% of the principal amount should such redemption occur before September 15, 2026 and (iii) 100.0% of the principal amount thereafter, in each case plus accrued and unpaid interest, if any. (3)The Company has the option to redeem its 3.75% senior notes due 2026 (the "2026 Senior Notes") at a redemption price of (i) 100.938% of the principal amount should such redemption occur before July 1, 2025 and (ii) 100.0% of the principal amount thereafter, in each case plus accrued and unpaid interest, if any.
Schedule of Debt Covenants | A summary of the various restrictive covenants for the Senior Notes are as follows:
|  | Covenant |  | Compliance |  |
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:
|  | Covenant |  | Compliance
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 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 unsecured credit agreements | The Company's unsecured credit agreements consisted of the following (in thousands):
|  |  |  |  |  | Carrying Value at
|  | Interest Rate at December 31, 2024 (1) |  | Maturity Date |  | December 31, 2024 |  | December 31, 2023
Revolver (2) |  | 6.08% |  | May 2027 |  | $ | 100,000 |  |  | $ | — |
$500 Million Term Loan Maturing 2027 |  | 4.69% |  | September 2027 (4) |  | 500,000 |  |  | — |
$400 Million Term Loan Maturing 2025 (3) |  | N/A |  | N/A |  | — |  |  | 400,000 |
$200 Million Term Loan Maturing 2026 |  | 6.03% |  | January 2026 (4) |  | 200,000 |  |  | 200,000 |
$225 Million Term Loan Maturing 2026 |  | 5.33% |  | May 2026 (4) |  | 225,000 |  |  | 225,000 |
|  |  |  |  |  | 1,025,000 |  |  | 825,000 |
Deferred financing costs, net (5) |  |  |  |  |  | (6,293) |  |  | (3,557) |
Total Revolver and Term Loans, net |  |  |  |  |  | $ | 1,018,707 |  |  | $ | 821,443 |
(1)Interest rate at December 31, 2024 gives effect to interest rate hedges. (2)At December 31, 2024 and 2023, there was $500.0 million and $600.0 million, respectively, of borrowing capacity on the Revolver. 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 or up to two six-month periods ending May 2028 if certain conditions are satisfied. In April 2024, the Company borrowed $200.0 million under the Revolver and utilized the proceeds to repay a $200.0 million maturing mortgage loan. In September 2024, the Company utilized a portion of the $500 Million Term Loan Maturing 2027 proceeds to repay $100.0 million of outstanding borrowings under the Revolver. (3)In September 2024, the Company utilized a portion of the $500 Million Term Loan Maturing 2027 proceeds to pay off this term loan. (4)This Term Loan includes two one-year extension options at the Company's discretion, subject to certain conditions. (5)Excludes $3.9 million and $5.6 million as of December 31, 2024 and 2023, 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 (in thousands):
|  |  |  |  |  |  |  | Carrying Value at
|  | Number of Assets Encumbered |  | Interest Rate at December 31, 2024 |  | Maturity Date |  | December 31, 2024 |  | December 31, 2023
Mortgage loan (1) |  | N/A |  | N/A |  | N/A |  | $ | — |  |  | $ | 200,000 |
Mortgage loan (2) |  | 3 |  | 4.49% | (4) | April 2025 | (5) | 96,000 |  |  | 96,000 |
Mortgage loan (2) |  | 4 |  | 4.93% | (4) | April 2025 | (5) | 85,000 |  |  | 85,000 |
Mortgage loan (3) |  | 1 |  | 5.06% |  | January 2029 |  | 26,472 |  |  | 26,833 |
|  | 8 |  |  |  |  |  | 207,472 |  |  | 407,833 |
Deferred financing costs, net |  |  |  |  |  |  |  | (135) |  |  | (170) |
Total mortgage loans, net |  |  |  |  |  |  |  | $ | 207,337 |  |  | $ | 407,663 |
(1)In April 2024, the Company repaid this mortgage loan using a $200.0 million draw under its Revolver. (2)The hotels encumbered by the mortgage loan are cross-collateralized. Requires payments of interest only through maturity. (3)Includes $1.5 million and $1.8 million at December 31, 2024 and 2023, respectively, related to a fair value adjustment on this mortgage loan from purchase price allocation at hotel property acquisition. This mortgage loan requires payments of interest only through maturity. (4)Interest rate at December 31, 2024 gives effect to interest rate hedges. (5)This mortgage loan provides for a one-year extension option to April 2026, subject to certain conditions. In December 2024, the Company sent a one-year extension notice on this mortgage loan. The extension notice is subject to leverage and debt service coverage ratio ("DSCR") tests and is currently under review by the lender.
Components of interest expense | The components of the Company's interest expense consisted of the following (in thousands):
| For the year ended December 31,
| 2024 |  | 2023 |  | 2022
Senior Notes | $ | 38,764 |  |  | $ | 38,764 |  |  | $ | 38,820 |
Revolver and Term Loans | 50,928 |  |  | 31,000 |  |  | 34,126 |
Mortgage loans | 13,451 |  |  | 21,014 |  |  | 13,563 |
Amortization of deferred financing costs | 6,623 |  |  | 6,100 |  |  | 5,967 |
Non-cash interest expense related to interest rate hedges | 1,592 |  |  | 1,929 |  |  | 679 |
Total interest expense | $ | 111,358 |  |  | $ | 98,807 |  |  | $ | 93,155 |
Future minimum principal payments | As of December 31, 2024, excluding extension options, the future minimum principal payments were as follows (in thousands):
2025 | $ | 181,000 |
2026 | 925,000 |
2027 | 600,000 |
2028 | — |
2029 | 525,000 |
Thereafter | — |
Total (1) | $ | 2,231,000 |
(1)Excludes a $1.5 million fair value adjustment on debt.

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