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v3.25.2

Indebtedness, net (Tables) | 6 Months Ended
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Jun. 30, 2025
Debt Disclosure [Abstract] |
Schedule of Indebtedness | Indebtedness consisted of the following (in thousands):
|  |  |  |  |  |  |  |  |  |  |  | June 30, 2025 |  | December 31, 2024
Indebtedness |  | Collateral |  | Maturity |  | Interest Rate |  |  |  | Debt Balance |  |  |  | Debt Balance |  |
Mortgage loan(2) |  | 2 | hotels |  | February 2025 |  |  | 4.45 | % |  |  |  | $ | — |  |  |  |  | $ | 25,882 |  |  |
Mortgage loan(3) |  | 1 | hotel |  | March 2025 |  |  | 4.66 | % |  |  |  | 21,971 |  |  |  |  | 22,132 |  |  |
Mortgage loan(4) |  | 18 | hotels |  | April 2025 |  | SOFR(1) + | 3.70 | % |  |  |  | 743,625 |  |  |  |  | 862,027 |  |  |
Mortgage loan(2) |  | 4 | hotels |  | June 2025 |  | SOFR(1) + | 4.03 | % |  |  |  | — |  |  |  |  | 143,877 |  |  |
Mortgage loan(2) |  | 4 | hotels |  | June 2025 |  | SOFR(1) + | 4.29 | % |  |  |  | — |  |  |  |  | 159,424 |  |  |
Mortgage loan(2) |  | 5 | hotels |  | June 2025 |  | SOFR(1) + | 3.02 | % |  |  |  | — |  |  |  |  | 109,473 |  |  |
Mortgage loan(5) |  | 8 | hotels |  | July 2025 |  | SOFR(1) + | 3.28 | % |  |  |  | 325,000 |  |  |  |  | 325,000 |  |  |
Mortgage loan(6) |  | 1 | hotel |  | December 2025 |  | SOFR(1) + | 4.00 | % |  |  |  | 37,000 |  |  |  |  | 37,000 |  |  |
Term loan(7) |  | Equity |  | January 2026 |  |  | 14.00 | % |  |  |  | — |  |  |  |  | 44,722 |  |  |
Mortgage loan(8) |  | 1 | hotel |  | February 2026 |  | SOFR(1) + | 2.85 | % |  |  |  | 12,330 |  |  |  |  | 12,330 |  |  |
Mortgage loan(9) |  | 17 | hotels |  | March 2026 |  | SOFR(1) + | 3.39 | % |  |  |  | 409,750 |  |  |  |  | 409,750 |  |  |
Mortgage loan(10) |  | 2 | hotels |  | May 2026 |  | SOFR(1) + | 4.00 | % |  |  |  | 98,450 |  |  |  |  | 98,450 |  |  |
Mortgage loan(11) |  | 1 | hotel |  | May 2026 |  | SOFR(1) + | 3.98 | % |  |  |  | 267,200 |  |  |  |  | 267,200 |  |  |
Mortgage loan(2) |  | 16 | hotels |  | February 2027 |  | SOFR(1) + | 4.37 | % |  |  |  | 580,000 |  |  |  |  | — |  |  |
Mortgage loan(12) |  | 1 | hotel |  | November 2027 |  | SOFR(1) + | 4.75 | % |  |  |  | 121,500 |  |  |  |  | 121,500 |  |  |
Mortgage loan(13) |  | 4 | hotels |  | December 2028 |  |  | 8.51 | % |  |  |  | 30,200 |  |  |  |  | 30,200 |  |  |
Preferred interest(14) |  | 1 | hotel |  | May 2029 |  |  | 14.00 | % |  |  |  | 35,185 |  |  |  |  | — |  |  |
Bridge loan(15)(16) |  | 1 | hotel |  | September 2025 |  |  | 7.75 | % |  |  |  | 2,167 |  |  |  |  | 20,898 |  |  |
Construction loan(15) |  | 1 | hotel |  | May 2033 |  |  | 11.26 | % |  |  |  | 15,726 |  |  |  |  | 15,785 |  |  |
Total indebtedness |  |  |  |  |  |  |  |  |  |  |  | $ | 2,700,104 |  |  |  |  | $ | 2,705,650 |  |  |
Premiums (discounts), net |  |  |  |  |  |  |  |  |  |  |  | 322 |  |  |  |  | 331 |  |  |
Capitalized default interest and late charges |  |  |  |  |  |  |  |  |  |  |  | 3,549 |  |  |  |  | 36 |  |  |
Deferred loan costs, net |  |  |  |  |  |  |  |  |  |  |  | (31,976) |  |  |  |  | (8,459) |  |  |
Embedded debt derivative (7) |  |  |  |  |  |  |  |  |  |  |  | — |  |  |  |  | 29,099 |  |  |
Indebtedness, net |  |  |  |  |  |  |  |  |  |  |  | $ | 2,671,999 |  |  |  |  | $ | 2,726,657 |  |  |
Indebtedness, net related to assets held for sale(4) |  | 1 | hotel |  | April 2025 |  | SOFR(1) + | 3.70 | % |  |  |  | — |  |  |  |  | 97,368 |  |  |
Indebtedness, net related to assets held for sale (9) |  | 2 | hotels |  | March 2026 |  | SOFR(1) + | 3.39 | % |  |  |  | 27,234 |  |  |  |  | — |  |  |
|  |  |  |  |  |  |  |  |  |  |  | $ | 2,644,765 |  |  |  |  | $ | 2,629,289 |  |  |
_____________________________ (1) SOFR rates were 4.32% and 4.33% at June 30, 2025 and December 31, 2024, respectively. (2) On February 12, 2025, this mortgage loan was refinanced into a new $580.0 million mortgage loan. The new mortgage loan is interest only and bears interest at a rate of SOFR + 4.37%, has a two-year initial term, and has three one-year extension options, subject to the satisfaction of certain conditions. (3) As of June 30, 2025, this mortgage loan was in default under the terms and conditions of the mortgage loan agreement. Default interest of 5.00% was accrued in addition to the stated interest rate, in accordance with the terms of the mortgage loan agreement, and is reflected in the Company’s consolidated balance sheet and statement of operations. (4) In January 2025, this mortgage loan was paid down $118.4 million in conjunction with the sale of the Courtyard Boston Downtown. As of June 30, 2025, this mortgage loan was in default under the terms and conditions of the mortgage loan agreement. Default interest of 4.00% was accrued in addition to the stated interest rate, in accordance with the terms of the mortgage loan agreement, and is reflected in the Company’s consolidated balance sheet and statement of operations. On June 9, 2025 and July 7, 2025, this loan entered into forbearance agreements that expired on July 7, 2025 and July 30, 2025, respectively. On July 30, 2025, this mortgage loan was amended to extend the maturity date to January 9, 2026 with a six month extension option, subject to the satisfaction of certain conditions, and is no longer in default. See note 18. (5) This mortgage loan has six one-year extension options, subject to satisfaction of certain conditions. The sixth one-year extension period began in February 2025, subject to satisfaction of certain conditions, which must be completed by August 9, 2025. On August 7, 2025, this mortgage loan was amended to extend the waiver date from August 9, 2025 to September 9, 2025. (6) This mortgage loan has three one-year extension options, subject to satisfaction of certain conditions. The first one-year extension period began in December 2024. This mortgage loan has a SOFR floor of 0.50%. (7) On February 12, 2025, we repaid this term loan including the $30.0 million exit fee. (8) On February 24, 2025, we amended this mortgage loan. Terms of the amendment included extending the current maturity date to February 2026 and adding one one-year extension option, subject to satisfaction of certain conditions. (9) On April 9, 2025, this mortgage loan was amended. Terms of the amendment included extending the current maturity date from April 2025 to March 2026, and adding two one-year extension options, subject to the satisfaction of certain conditions. As of June 30, 2025, the Hilton Houston NASA Clear Lake and Residence Inn Evansville properties are held for sale. See note 5. (10) This mortgage loan has two one-year extension options, subject to satisfaction of certain conditions. This mortgage loan has a SOFR floor of 0.50%. (11) This mortgage loan has three one-year extension options, subject to satisfaction of certain conditions. (12) This mortgage loan has two one-year extension options, subject to satisfaction of certain conditions. This mortgage loan has a SOFR floor of 2.75%. (13) This loan is associated with Stirling OP. See discussion in notes 1 and 2. (14) On May 8, 2025, we received $35.0 million in return for an equity investment in a hotel property. The holder is entitled to a preferred return of 14.0% per annum. The investment is mandatorily redeemable on May 10, 2029. (15) This loan is associated with 815 Commerce Managing Member, LLC. See discussion in notes 1, 2 and 8. (16) In June 2025, this loan was amended. Terms of the amendment included extending the maturity date to September 2025.
Schedule of Net Premium (Discount) Amortization Recognized | We recognized net premium (discount) amortization as presented in the table below (in thousands):
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
Line Item |  | 2025 |  | 2024 |  | 2025 |  | 2024 |  |
Interest expense and amortization of discounts and loan costs |  | $ | 26 |  |  | $ | (18) |  |  | $ | 9 |  |  | $ | (879) |  |  |

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