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Debt (Tables)
 12 Months Ended
Dec. 31, 2024
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments
The Company's debt consisted of the following (in thousands):
December 31, 2024December 31, 2023
Senior Notes, net$994,037 $991,672 
Revolver Outstanding100,000 — 
Term Loans, net918,707 821,443 
Mortgage loans, net207,337 407,663 
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, 2024Maturity DateDecember 31, 2024December 31, 2023
2029 Senior Notes (1)(2)4.00%September 2029$500,000 $500,000 
2026 Senior Notes (1)(3)3.75%July 2026500,000 500,000 
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:
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 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 DateDecember 31, 2024December 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/AN/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 $5.6 million as of December 31, 2024 and 2023, respectively, related to deferred financing costs on the Revolver, which are included in prepaid expense and other assets in the accompanying consolidated balance sheets.
Schedule of mortgage loans
The Company's mortgage loans consisted of the following (in thousands):
Carrying Value at
Number of Assets EncumberedInterest Rate at December 31, 2024Maturity DateDecember 31, 2024December 31, 2023
Mortgage loan (1)N/AN/AN/A$— $200,000 
Mortgage loan (2)34.49%(4)April 2025(5)96,000 96,000 
Mortgage loan (2)44.93%(4)April 2025(5)85,000 85,000 
Mortgage loan (3)15.06%January 202926,472 26,833 
8207,472 407,833 
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,
202420232022
Senior Notes$38,764 $38,764 $38,820 
Revolver and Term Loans50,928 31,000 34,126 
Mortgage loans13,451 21,014 13,563 
Amortization of deferred financing costs6,623 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 
2026925,000 
2027600,000 
2028— 
2029525,000 
Thereafter— 
Total (1)$2,231,000 
(1)Excludes a $1.5 million fair value adjustment on debt.