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Debt | 12 Months Ended
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Dec. 31, 2022
Debt Disclosure [Abstract] |
Debt | Debt The Company's mortgage loans are collateralized by first-mortgage liens on certain of the Company's properties. The mortgages are non-recourse except for instances of fraud or misapplication of funds. Debt consisted of the following (in thousands):
Loan/Collateral | Interest Rate |  | Maturity Date |  | December 31, 2022 Property Carrying Value |  | Balance Outstanding as of
December 31, 2022 |  | December 31, 2021
Revolving Credit Facility (1) | — |  |  | October 28, 2026 |  | $ | — |  |  | $ | — |  |  | $ | 70,000 |
Delayed Draw Term Loan (2) | — |  |  | October 28, 2025 |  | — |  |  | — |  |  | — |
Construction Loan (3) | 9.20 | % |  | August 4, 2024 |  | 65,336 |  |  | 39,331 |  |  | 35,007 |
Homewood Suites by Hilton San Antonio, TX | 4.59 | % |  | February 6, 2023 |  | 27,797 |  |  | 14,402 |  |  | 14,808 |
Residence Inn by Marriott Vienna, VA | 4.49 | % |  | February 6, 2023 |  | 28,844 |  |  | 19,680 |  |  | 20,243 |
Courtyard by Marriott Houston, TX | 4.19 | % |  | May 6, 2023 |  | 28,502 |  |  | 16,200 |  |  | 16,673 |
Hyatt Place Pittsburgh, PA | 4.65 | % |  | July 6, 2023 |  | 31,714 |  |  | 19,975 |  |  | 20,515 |
Residence Inn by Marriott Bellevue, WA | 4.97 | % |  | December 6, 2023 |  | 59,621 |  |  | 41,133 |  |  | 42,089 |
Residence Inn by Marriott Garden Grove, CA | 4.79 | % |  | April 6, 2024 |  | 37,864 |  |  | 30,184 |  |  | 30,839 |
Residence Inn by Marriott Silicon Valley I, CA | 4.64 | % |  | July 1, 2024 |  | 67,827 |  |  | 61,280 |  |  | 62,374 |
Residence Inn by Marriott Silicon Valley II, CA | 4.64 | % |  | July 1, 2024 |  | 75,475 |  |  | 66,860 |  |  | 68,054 |
Residence Inn by Marriott San Mateo, CA | 4.64 | % |  | July 1, 2024 |  | 56,965 |  |  | 45,960 |  |  | 46,781 |
Residence Inn by Marriott Mountain View, CA | 4.64 | % |  | July 1, 2024 |  | 42,258 |  |  | 35,842 |  |  | 36,481 |
SpringHill Suites by Marriott Savannah, GA | 4.62 | % |  | July 6, 2024 |  | 31,517 |  |  | 28,365 |  |  | 28,873 |
Hilton Garden Inn Marina del Rey, CA | 4.68 | % |  | July 6, 2024 |  | 36,170 |  |  | 19,535 |  |  | 20,024 |
Homewood Suites by Hilton Billerica, MA | 4.32 | % |  | December 6, 2024 |  | 11,460 |  |  | 14,804 |  |  | 15,114 |
Hampton Inn & Suites Houston Medical Center, TX | 4.25 | % |  | January 6, 2025 |  | 14,542 |  |  | 16,706 |  |  | 17,058 |
Total debt before unamortized debt issue costs |  |  |  |  | $ | 615,892 |  |  | $ | 470,257 |  |  | $ | 544,933 |
Unamortized mortgage debt issue costs |  |  |  |  |  |  | (373) |  |  | (644) |
Total debt outstanding |  |  |  |  |  |  | $ | 469,884 |  |  | $ | 544,289 |
1.The interest rate for the revolving credit facility is variable and based on one-month term secured overnight financing rate ("SOFR") plus a spread of 1.50% to 2.25% based on the Company's leverage and a credit spread adjustment of 0.10%. Amount shown as outstanding as of December 31, 2021 was outstanding under the Company's prior revolving credit facility, which was replaced by the Company's current revolving credit facility on October 28, 2022. 2.The interest rate for the delayed-draw term loan is variable and based on one-month term SOFR plus a spread of 1.45% to 2.20% based on the Company's leverage and a credit spread adjustment of 0.10%. 3.On August 4, 2020, a subsidiary of the Company entered into an agreement with affiliates of Mack Real Estate Credit Strategies to obtain a $40 million loan to fund the remaining construction costs of the Home2 Woodland Hills hotel development. The loan has an initial term of 4 years and there are two six-month extension options. The rate on the loan is LIBOR, subject to a 0.25% floor, plus a spread of 7.5%. On October 28, 2022, the Company entered into a $215.0 million unsecured revolving credit facility and a $90.0 million unsecured delayed-draw term loan facility that replaced the Company’s previous $250 million revolving credit facility that was scheduled to mature on March 8, 2023. The revolving credit facility has an initial maturity of October 28, 2026 and provides two six-month extension options and the delayed-draw term loan facility has an initial maturity of October 28, 2025 and provides two one-year extension options. On December 19, 2022, the Company executed an amendment to its unsecured revolving credit facility increasing commitments by $45.0 million for a total borrowing capacity of $260.0 million. Combined with its $90.0 million unsecured delayed-draw term loan, the Company has $350.0 million of total commitments under the new facilities. At December 31, 2022 and 2021, the Company had $0 and $70.0 million, respectively, of outstanding borrowings under its revolving credit facility and delayed-draw term loan. At December 31, 2022, the maximum borrowing availability under the combined facilities was $350.0 million. The Company estimates the fair value of its fixed rate debt by discounting the future cash flows of each instrument at estimated market rates. All of the Company's mortgage loans are fixed-rate. Rates take into consideration general market conditions, quality and estimated value of collateral and maturity of debt with similar credit terms and are classified within level 3 of the fair value hierarchy. The estimated fair value of the Company’s fixed rate debt as of December 31, 2022 and 2021 was $412.7 million and $443.4 million, respectively. The Company estimates the fair value of its variable rate debt by taking into account general market conditions and the estimated credit terms it could obtain for debt with a similar maturity and that is classified within level 3 of the fair value hierarchy. As of December 31, 2022, the Company’s variable rate debt consists of its revolving credit facility, its delayed-draw term loan and its construction loan. The estimated fair value of the Company’s variable rate debt as of December 31, 2022 and 2021 was $39.3 million and $105.0 million, respectively. The Company's mortgage debt agreements contain “cash trap” provisions that are triggered when the hotel’s operating results fall below a certain debt service coverage ratio or debt yield. When these provisions are triggered, all of the excess cash flow generated by the hotel is deposited directly into cash management accounts for the benefit of the lenders until a specified debt service coverage ratio or debt yield is reached. Such provisions do not allow the lender the right to accelerate repayment of the underlying debt. As of December 31, 2022, five of our mortgage debt lenders have enforced cash trap provisions resulting in $8.0 million of restricted cash. The Company does not expect that such cash traps will affect its ability to satisfy its short-term liquidity requirements. Future scheduled principal payments of debt obligations as of December 31, 2022, for each of the next five calendar years and thereafter are as follows (in thousands):
| Amount
2023 | $ | 117,962 |
2024 | 336,334 |
2025 | 15,961 |
2026 | — |
2027 | — |
Thereafter | — |
Total debt before unamortized debt issue costs | $ | 470,257 |
Unamortized mortgage debt issue costs | (373) |
Total debt outstanding | $ | 469,884 |
Accounting for Derivative Instruments The Company has entered into interest rate cap agreements to hedge against interest rate fluctuations related to the construction loan for the Home2 Woodland Hills hotel. The Company records its derivative instruments on the balance sheet at their estimated fair values. Changes in the fair value of the derivatives are recorded each period in current earnings or in other comprehensive income, depending on whether a derivative is designated as part of a hedging relationship and, if it is, depending on the type of hedging relationship. The Company's interest rate caps are not designated as a hedge but to eliminate the incremental cost to the Company if the one-month LIBOR were to exceed 3.5%. Accordingly, the interest rate caps are recorded on the balance sheet under prepaid expenses and other assets at the estimated fair value and realized and unrealized changes in the fair value are reported in the consolidated statements of operations. As of December 31, 2022, the fair value of the interest rate caps were $0.8 million.

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