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Indebtedness, net (Tables)
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Summary of Indebtedness
Indebtedness consisted of the following (in thousands):
December 31, 2023December 31, 2022
IndebtednessCollateralMaturity
Interest Rate (1)
Default Rate (2)
Debt BalanceBook Value of CollateralDebt BalanceBook Value of Collateral
Mortgage loan (5)
1hotelJune 2023
LIBOR(3) +
2.45 %n/a$— $— $73,450 $100,142 
Mortgage loan (6)
7hotelsJune 2023
SOFR(4) +
3.70 %4.00%180,720 121,119 180,720 124,761 
Mortgage loan (7)
7hotelsJune 2023
SOFR(4) +
3.44 %4.00%174,400 113,110 174,400 118,783 
Mortgage loan (8)
5hotelsJune 2023
SOFR(4) +
3.73 %n/a— — 215,120 164,792 
Mortgage loan (5)
1hotelNovember 2023
SOFR(4) +
2.80 %n/a— — 25,000 46,659 
Mortgage loan (9)
1hotelJanuary 20245.49 %n/a— — 6,345 6,556 
Mortgage loan (9)
1hotelJanuary 20245.49 %n/a— — 9,261 13,638 
Term loan (10)
EquityJanuary 202414.00 %n/a183,082 — 195,959 — 
Mortgage loan (11)
8hotelsFebruary 2024
SOFR(4) +
3.28 %n/a345,000 298,826 395,000 288,740 
Mortgage loan (12)
2hotelsMarch 2024
SOFR(4) +
2.80 %n/a240,000 201,279 240,000 207,265 
Mortgage loan (13)
19hotelsApril 2024
SOFR(4) +
3.51 %n/a862,027 907,476 907,030 932,715 
Mortgage loan1hotelMay 20244.99 %n/a5,613 5,813 5,819 5,983 
Mortgage loan (14)
1hotelJune 2024
SOFR(4) +
2.00 %n/a8,881 6,334 8,881 6,651 
Mortgage loan (15)
4hotelsJune 2024
SOFR(4) +
3.90 %n/a143,877 127,829 221,040 145,085 
Mortgage loan (16)
5hotelsJune 2024
SOFR(4) +
4.17 %n/a237,061 77,978 262,640 80,554 
Mortgage loan (17)
5hotelsJune 2024
SOFR(4) +
2.90 %n/a119,003 158,702 160,000 168,223 
Mortgage loan2hotelsAugust 20244.85 %n/a10,945 7,831 11,172 8,404 
Mortgage loan (9)
3hotelsAugust 20244.90 %n/a— — 22,349 17,041 
Mortgage loan (18)
1hotelNovember 2024
SOFR(4) +
4.76 %n/a86,000 81,104 85,552 87,139 
Mortgage loan (19)
17hotelsNovember 2024
SOFR(4) +
3.39 %n/a409,750 225,466 415,000 220,462 
Mortgage loan (20)
1hotelDecember 2024
SOFR(4) +
4.00 %n/a37,000 59,352 37,000 53,525 
Mortgage loan (21)
1hotelDecember 2024
SOFR(4) +
2.85 %n/a13,759 22,473 15,290 23,440 
Mortgage loan (22)
3hotelsFebruary 20254.45 %n/a45,792 53,207 46,918 56,536 
Mortgage loan1hotelMarch 20254.66 %n/a22,742 42,292 23,326 43,879 
Mortgage loan (23)
1hotelAugust 2025
SOFR(4) +
3.91 %n/a98,000 167,176 98,000 170,329 
Mortgage loan (5)
2hotelsMay 2026
SOFR(4) +
4.00 %n/a98,450 143,710 — — 
Mortgage loan (9) (24)
4hotelsDecember 20288.51 %n/a30,200 35,580 — — 
Environmental loan (28)
1hotelApril 202410.00%n/a571 — — — 
Bridge loan (25) (28)
1hotelMay 20247.25%n/a19,889 — — — 
TIF loan (26) (28)
1hotelAugust 20258.25%n/a5,609 — — — 
Construction loan (27) (28)
1hotelMay 2033
SOFR(4) +
8.50%n/a15,494 87,358 — — 
Total indebtedness$3,393,865 $2,944,015 $3,835,272 $3,091,302 
Premiums (discounts), net(606)(20,249)
Capitalized default interest and late charges396 8,363 
Deferred loan costs, net(6,914)(8,530)
Embedded debt derivative23,696 23,687 
Indebtedness, net$3,410,437 $3,838,543 
Indebtedness related to assets held for sale, net (22)
1hotel
February 2025
4.45 %n/a14,366 — 
$3,396,071 $3,838,543 
_____________________________
(1)    Interest rates do not include default or late payment rates in effect on some mortgage loans.
(2)    Default rates are presented for mortgage loans which were in default, in accordance with the terms and conditions of the applicable mortgage agreement, as of December 31, 2023. The default rate is accrued in addition to the stated interest rate.
(3)    LIBOR rate was 4.39% at December 31, 2022.
(4)    SOFR rates were 5.35% and 4.36% at December 31, 2023 and December 31, 2022, respectively.
(5)    On May 19, 2023, we refinanced this mortgage loan with a new $98.5 million mortgage loan with a three-year initial term and two one-year extension options, subject to satisfaction of certain conditions. The new mortgage loan is interest only and bears interest at a rate of SOFR + 4.00% and has a SOFR floor of 0.50%.
(6)    This mortgage loan has five one-year extension options, subject to satisfaction of certain conditions. The third one-year extension period ended in June 2022. The paydown that was required in order to exercise the fourth one-year extension option was not made. As a result, effective June 9, 2023, this mortgage loan was in default under the terms and conditions of the mortgage loan agreement. Default interest has been accrued, in accordance with the terms of the mortgage loan agreement, and is reflected in the Company’s consolidated balance sheet and statement of operations. This loan transitioned from LIBOR to SOFR in July 2023 and the variable interest rate changed from LIBOR + 3.65% to SOFR + 3.70%.
(7)    This loan has five one-year extension options, subject to satisfaction of certain conditions. The third one-year extension period began in June 2022. The paydown that was required in order to exercise the fourth one-year extension option was not made. As a result, effective June 9, 2023, this mortgage loan was in default under the terms and conditions of the mortgage loan agreement. Default interest has been accrued, in accordance with the terms of the mortgage loan agreement, and is reflected in the Company’s consolidated balance sheet and statement of operations. This loan transitioned from LIBOR to SOFR in July 2023 and the variable interest rate changed from LIBOR + 3.39% to SOFR + 3.44%.
(8)    On November 30, 2023, the assets of this loan pool were transferred to the current holder of the mortgage loan through a deed in lieu of foreclosure transaction. The assets and liabilities associated with this mortgage loan have been removed from the Company's consolidated balance sheet. See note 5.
(9)     On November 16, 2023, we refinanced this mortgage loan with a new $30.2 million mortgage loan with a five-year initial term. The new mortgage loan is interest only and bears interest at a fixed rate of 8.51%.
(10)    This term loan has two one-year extension options, subject to satisfaction of certain conditions. Effective January 15, 2023, the interest rate decreased from 16.00% to 14.00% in accordance with the terms and conditions of the loan agreement. On August 1, 2023, we repaid $12.9 million of principal on this term loan. The first one-year extension period began in January 2024.
(11)    On February 9, 2023, we amended this mortgage loan. Terms of the amendment included a principal paydown of $50.0 million, and the variable interest rate changed from LIBOR + 3.07% to LIBOR + 3.17%. This mortgage loan has five one-year extension options, subject to satisfaction of certain conditions. The fifth one-year extension period began in February 2024. This loan transitioned from LIBOR to SOFR in July 2023 and the variable interest rate changed from LIBOR + 3.17% to SOFR + 3.28%.
(12)    This mortgage loan has five one-year extension options, subject to satisfaction of certain conditions. The fourth one-year extension period began in March 2024. This loan transitioned from LIBOR to SOFR in July 2023 and the variable interest rate changed from LIBOR + 2.75% to SOFR + 2.80%.
(13)    This mortgage loan has five one-year extension options, subject to satisfaction of certain conditions. The fourth one-year extension period began in April 2023. In accordance with exercising the fourth one-year extension option, we repaid $45.0 million of principal and the variable interest rate changed from LIBOR + 3.20% to LIBOR + 3.47%. This loan transitioned from LIBOR to SOFR in July 2023 and the variable interest rate changed from LIBOR + 3.47% to SOFR + 3.51%.
(14)    This mortgage loan has a SOFR floor of 2.00%.
(15)    This mortgage loan has five one-year extension options, subject to satisfaction of certain conditions. The fourth one-year extension period began effective June 2023. In accordance with exercising the extension option, we repaid $62.4 million of principal and the variable interest rate changed from LIBOR + 3.73% to LIBOR + 3.86%. This loan transitioned from LIBOR to SOFR in July 2023 and the variable interest rate changed from LIBOR + 3.86% to SOFR + 3.90%. A portion of this mortgage loan relates to the Sheraton Bucks County, which was sold on November 9, 2023, resulting in a $13.8 million paydown. See note 5.
(16)    This mortgage loan has five one-year extension options, subject to satisfaction of certain conditions. The fourth one-year extension period began in June 2023. In accordance with exercising the extension option, the interest rate changed from LIBOR + 4.02% to LIBOR + 4.15%. On July 5, 2023, we repaid $25.6 million of principal, reducing the outstanding principal balance to $237.1 million, in accordance with exercising the fourth extension option. This loan transitioned from LIBOR to SOFR in July 2023 and the variable interest rate changed from LIBOR + 4.15% to SOFR + 4.17%.
(17)    This mortgage loan has five one-year extension options, subject to satisfaction of certain conditions. The fourth one-year extension period began effective June 2023. In accordance with exercising the extension option, the interest rate changed from LIBOR + 2.73% to LIBOR + 2.85%. On July 7, 2023, we repaid $41.0 million of principal, reducing the outstanding principal balance to $119.0 million, in accordance with exercising the fourth extension option. This loan transitioned from LIBOR to SOFR in July 2023 and the variable interest rate changed from LIBOR + 2.85% to SOFR + 2.90%.
(18)    On January 27, 2023, we drew the remaining $449,000 of the $2.0 million additional funding available to replenish restricted cash balances in accordance with the terms of the mortgage loan. Effective June 30, 2023, we replaced the variable interest rate of LIBOR + 4.65% with SOFR + 4.76% in accordance with the terms and conditions of the loan agreement. This mortgage loan has two one-year extension options, subject to satisfaction of certain conditions.
(19)    This mortgage loan has five one-year extension options, subject to satisfaction of certain conditions. The fifth one-year extension period began in November 2023. This loan transitioned from LIBOR to SOFR in July 2023 and the variable interest rate changed from LIBOR + 3.13% to SOFR + 3.26%. On July 14, 2023, we repaid $5.3 million of principal on this mortgage loan. In conjunction with the fifth extension, the variable interest rate increased from SOFR + 3.26% to SOFR + 3.39%.
(20)    This mortgage loan has three one-year extension options, subject to satisfaction of certain conditions. This mortgage loan has a SOFR floor of 0.50%.
(21)    This loan has two one-year extension options, subject to satisfaction of certain conditions. The second one-year extension period began in December 2023. In accordance with the terms of the loan, we repaid $1.4 million to exercise the second extension.
(22)    A portion of this mortgage loan at December 31, 2023 relates to Residence Inn Salt Lake City. See note 5.
(23)    This mortgage loan has one one-year extension option, subject to satisfaction of certain conditions.
(24)    This loan is associated with Stirling Hotels & Resorts Inc. See discussion in notes 1 and 4.
(25)    On December 22, 2023, we amended this loan. Terms of the amendment included extending the maturity date six months to May 2024, and increasing the fixed interest rate from 5.00% to 7.25%. This loan is collateralized by historical tax credits, certain capital distribution, and the deed of trust for the hotel project.
(26)    On July 26, 2023, we amended this loan. Terms of the amendment included increasing the fixed rate of 4.75% to a fixed rate of 8.25%, and extending the maturity date from July 2024 to August 2025. This loan is collateralized by historical tax credits.
(27)    Effective August 1, 2023, we amended this construction loan. Terms of the amendment included replacing the variable interest rate of LIBOR + 8.39% with SOFR + 8.50% and extending the term loan effective date from August 2023 to January 2024. Additionally, the term loan rate of a fixed rate of 6.81% plus the higher of the a) five-year swap rate and b) 0.94% was replaced with a fixed rate of 7.75% plus SOFR, less 1.85%. The final maturity date is May 2033.
(28)    This loan is associated with 815 Commerce Managing Member, LLC. See discussion in notes 2, 4 and 8.
Schedule of Net Premium (Discount) Amortization Recognized
We recognized net premium (discount) amortization as presented in the table below (in thousands):
Year Ended December 31,
Line Item202320222021
Interest expense and amortization of discounts and loan costs$(18,684)$(12,015)$(7,142)
Schedule of Maturities and Schedule Amortizations
Maturities and scheduled amortizations of indebtedness as of December 31, 2023 for each of the five following years and thereafter are as follows (in thousands), excluding extension options:
2024$3,077,578 
2025172,142 
202698,450 
2027— 
202830,200 
Thereafter15,495 
Total$3,393,865