Indebtedness

Indebtedness consisted of the following (in thousands):



Indebtedness	Collateral	Maturity	Interest Rate	September 30, 2016			December 31, 2015
Secured revolving credit facility⁽³⁾	None	November 2016	Base Rate⁽²⁾+ 1.25% to 2.75% or LIBOR⁽¹⁾ + 2.25% to 3.75%	$	—		$	—
Mortgage loan⁽⁴⁾	1 hotel	March 2017	LIBOR⁽¹⁾+ 2.30%	80,000			80,000
Mortgage loan⁽⁵⁾	1 hotel	March 2017	LIBOR⁽¹⁾ + 2.25%	70,000			70,000
Mortgage loan⁽⁶⁾	1 hotel	April 2017	5.91%	33,010			33,381
Mortgage loan⁽⁷⁾	1 hotel	April 2017	5.95%	56,136			122,374
Mortgage loan	3 hotels	April 2017	5.95%	246,277			249,020
Mortgage loan⁽⁵⁾	1 hotel	December 2017	LIBOR⁽¹⁾+ 4.95%	40,000			40,000
Mortgage loan⁽⁵⁾	1 hotel	December 2017	LIBOR⁽¹⁾ + 4.95%	42,000			42,000
TIF loan^{(6) (8)}	1 hotel	June 2018	12.85%	8,098			8,098
Mortgage loan⁽⁹⁾	2 hotels	November 2019	LIBOR⁽¹⁾ + 2.65%	193,428			195,359
				768,949			840,232
Deferred loan costs, net				(2,919		)	(4,640		)
Indebtedness, net				$	766,030		$	835,592

__________________


⁽¹⁾	LIBOR rates were 0.531% and 0.430% at September 30, 2016 and December 31, 2015, respectively.


⁽²⁾	Base Rate, as defined in the secured revolving credit facility agreement, is the greater of (i) the prime rate set by Bank of America, or (ii) federal funds rate + 0.5%.

⁽³⁾

Our borrowing capacity under our secured revolving credit facility is $150.0 million. We have an option, subject to lender approval, to further increase the borrowing capacity to an aggregate of $300.0 million. We may use up to $15.0 million for standby letters of credit. The secured revolving credit facility has two one-year extension options subject to advance notice, satisfaction of certain conditions and a 0.25% extension fee.


⁽⁴⁾	This loan has three one-year extension options, subject to satisfaction of certain conditions, of which the first was exercised in March 2016.


⁽⁵⁾	This loan has three one-year extension options, subject to satisfaction of certain conditions.


⁽⁶⁾	These loans are collateralized by the same property.


⁽⁷⁾	Approximately $65 million of the mortgage loan was repaid upon the sale of Courtyard Seattle Downtown which occurred on July 1, 2016.


⁽⁸⁾	The interest expense from the TIF loan is offset against interest income recorded on the note receivable of the same amount. See note 5.


⁽⁹⁾	This loan has two one-year extension options, subject to satisfaction of certain conditions.

We are required to maintain certain financial ratios under our secured revolving credit facility. If we violate covenants in any debt agreement, we could be required to repay all or a portion of our indebtedness before maturity at a time when we might be unable to arrange financing for such repayment on attractive terms, if at all. Violations of certain debt covenants may result in our inability to borrow unused amounts under our line of credit, even if repayment of some or all of our borrowings is not required. The assets of certain of our subsidiaries are pledged under non-recourse indebtedness and are not available to satisfy the debts and other obligations of the consolidated group. As of September 30, 2016, we were in compliance in all material respects with all covenants or other requirements set forth in our debt agreements as amended.