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Note 6 - Debt | 9 Months Ended
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Sep. 30, 2025
Notes to Financial Statements |
Debt Disclosure [Text Block] |
6. | Debt
The Company’s mortgage loans are collateralized by first-mortgage liens on certain of the Company’s properties. The mortgage loans are non-recourse except for instances of fraud or misapplication of funds. Mortgage, revolving credit facility, and unsecured term loan debt consisted of the following (dollars in thousands):
|  |  |  |  |  |  |  |  | September 30, 2025 |  |  |  |  |  |  |  |  |
|  | Interest |  |  | Maturity |  |  | Property |  |  | Balance Outstanding on Loan as of |
Collateral |  | Rate |  |  | Date |  |  | Carrying Value |  |  | September 30, 2025 |  |  | December 31, 2024 |
Revolving Credit Facility (1) |  |  | 5.66 | % |  | September 25, 2029 |  |  | $ | — |  |  | $ | — |  |  | $ | 110,000 |
Unsecured Term Loan (2) |  |  | 5.61 | % |  | September 25, 2029 |  |  |  | — |  |  |  | 200,000 |  |  |  | 140,000 |
Hampton Inn & Suites Houston Medical Center, TX |  |  | 4.25 | % |  | January 6, 2025 |  |  |  | — |  |  |  | — |  |  |  | 15,957 |
Courtyard by Marriott Dallas, TX |  |  | 7.61 | % |  | September 11, 2028 |  |  |  | 38,680 |  |  |  | 24,500 |  |  |  | 24,500 |
Hyatt Place Pittsburgh, PA (3) |  |  | 7.29 | % |  | June 11, 2029 |  |  |  | 29,089 |  |  |  | 23,300 |  |  |  | 23,300 |
Residence Inn by Marriott Austin, TX |  |  | 7.42 | % |  | September 6, 2033 |  |  |  | 34,545 |  |  |  | 20,850 |  |  |  | 20,850 |
TownePlace Suites by Marriott Austin, TX |  |  | 7.42 | % |  | September 6, 2033 |  |  |  | 29,172 |  |  |  | 19,075 |  |  |  | 19,075 |
Courtyard by Marriott Summerville, SC |  |  | 7.33 | % |  | September 11, 2033 |  |  |  | 17,706 |  |  |  | 9,000 |  |  |  | 9,000 |
Residence Inn by Marriott Summerville, SC |  |  | 7.33 | % |  | September 11, 2033 |  |  |  | 16,626 |  |  |  | 9,500 |  |  |  | 9,500 |
SpringHill Suites by Marriott Savannah, GA (4) |  |  | 6.70 | % |  | June 6, 2034 |  |  |  | 32,057 |  |  |  | 22,000 |  |  |  | 22,000 |
Hampton Inn & Suites Exeter, NH (4) |  |  | 6.70 | % |  | June 11, 2034 |  |  |  | 12,054 |  |  |  | 15,000 |  |  |  | 15,000 |
Total debt before unamortized debt issue costs |  |  |  |  |  |  |  |  | $ | 209,929 |  |  | $ | 343,225 |  |  | $ | 409,182 |
Unamortized term loan and mortgage debt issue costs |  |  |  |  |  |  |  |  |  |  |  |  |  | (4,379 | ) |  |  | (2,332 | )
Total debt outstanding |  |  |  |  |  |  |  |  |  |  |  |  | $ | 338,846 |  |  | $ | 406,850 |
| 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.
| 2. | The interest rate for the unsecured 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.
| 3. | On May 31, 2024, a subsidiary of Chatham entered into an agreement with Wells Fargo Bank to obtain a $23.3 million loan secured by the Hyatt Place Pittsburgh. The loan has a term of five years, carries a fixed interest rate of 7.29%, and is interest-only for its duration.
| 4. | On June 6, 2024, two subsidiaries of Chatham entered into two agreements with Barclays Capital Real Estate and Wells Fargo Bank to obtain a $22.0 million loan secured by the SpringHill Suites Savannah and a $15.0 million loan secured by the Hampton Inn & Suites Exeter. Each loan has a term of ten years, carries a fixed interest rate of 6.70%, and is interest-only for its duration.
On September 25, 2025, the Company entered into a new credit agreement for a credit facility (the "Credit Facility") consisting of a $300.0 million unsecured revolving credit facility and a $200.0 million unsecured term loan facility which replaced the existing $260.0 million revolving credit facility and the existing $140.0 unsecured term loan facility. Proceeds from the new $200.0 million funded term loan were used to repay the $60.0 million of outstanding borrowings under the prior $260.0 million revolving credit facility and the $140.0 million of outstanding borrowings under the prior term loan. The new Credit Facility has an initial maturity date of September 25, 2029 and provides options to extend for one year. Total commitments of $500.0 million under the new Credit Facility can be increased up to $650.0 million through an accordion feature. At September 30, 2025 and December 31, 2024, the Company had $200.0 million and $250.0 million, respectively, of outstanding borrowings under its revolving credit facility and unsecured term loan. At September 30, 2025, the aggregate maximum remaining borrowing availability under the Credit Facility was $300.0 million. During the nine months ended September 30, 2025, the Company repaid the maturing mortgage loan of $16.0 million on the Hampton Inn Houston hotel property. During the year ended December 31, 2024, the Company repaid the maturing mortgage loans of $29.3 million on the Residence Inn Garden Grove hotel property, $34.9 million on the Residence Inn Mountain View hotel property, $27.6 million on the SpringHill Suites Savannah hotel property, $59.5 million on the Residence Inn Silicon Valley I hotel property, $65.0 million on the Residence Inn Silicon Valley II hotel property, $44.7 million on the Residence Inn San Mateo hotel property, $18.8 million on the Hilton Garden Inn Marina del Rey hotel property, and $14.2 million on the Homewood Suites Billerica hotel property. The Company utilized cash, borrowings under its unsecured credit facility and unsecured term loan, and proceeds from its eight new mortgage loans to repay these loans. 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 September 30, 2025 and December 31, 2024 was $153.0 million and $164.8 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 similar maturity and is classified within level 3 of the fair value hierarchy. As of September 30, 2025, the Company’s variable rate debt consisted of borrowings under its revolving credit facility and its unsecured term loan. The estimated fair value of the Company’s variable rate debt as of September 30, 2025 and December 31, 2024 was $200.0 million and $250.0 million, respectively. Future scheduled principal payments of debt obligations as of September 30, 2025, for the current year and each of the next five calendar years and thereafter are as follows (in thousands):
|  | Amount |
2025 (remaining three months) |  | $ | — |
2026 |  |  | — |
2027 |  |  | — |
2028 |  |  | 24,590 |
2029 |  |  | 223,681 |
Thereafter |  |  | 94,954 |
Total debt before unamortized debt issue costs |  | $ | 343,225 |
Unamortized term loan and mortgage debt issue costs |  |  | (4,379 | )
Total debt outstanding |  | $ | 338,846 |

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 8A -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-8A Reference 2: http://www.xbrl.org/2003/role/disclosureRef 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