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Indebtedness | 9 Months Ended
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Sep. 30, 2017
Debt Disclosure [Abstract] |
Indebtedness | Indebtedness Indebtedness consisted of the following (in thousands):
Indebtedness |  | Collateral |  | Maturity |  | Interest Rate |  | September 30, 2017 |  | December 31, 2016
Secured revolving credit facility(3) |  | None |  | November 2019 |  | Base Rate (2) + 1.25% to 2.50% or LIBOR(1) + 2.25% to 3.50% |  | $ | — |  |  | $ | — |
Mortgage loan(4) (5) |  | 1 hotel |  | April 2017 |  | 5.91% |  | — |  |  | 32,879 |
Mortgage loan(4) |  | 1 hotel |  | April 2017 |  | 5.95% |  | — |  |  | 55,915 |
Mortgage loan(4) |  | 3 hotels |  | April 2017 |  | 5.95% |  | — |  |  | 245,307 |
Mortgage loan(6) |  | 1 hotel |  | December 2017 |  | LIBOR (1) +4.95% |  | — |  |  | 40,000 |
Mortgage loan(7) |  | 1 hotel |  | December 2017 |  | LIBOR(1) + 4.95% |  | 42,000 |  |  | 42,000 |
Mortgage loan(8) |  | 1 hotel |  | March 2018 |  | LIBOR(1) + 2.30% |  | 80,000 |  |  | 80,000 |
Mortgage loan(9) |  | 1 hotel |  | March 2018 |  | LIBOR(1) + 2.25% |  | 70,000 |  |  | 70,000 |
TIF loan(5) (10) |  | 1 hotel |  | June 2018 |  | 12.85% |  | 8,098 |  |  | 8,098 |
Mortgage loan(4) (5) |  | 5 hotels |  | February 2019 |  | LIBOR(1) + 2.58% |  | 365,000 |  |  | — |
Mortgage loan(7) |  | 1 hotel |  | April 2019 |  | LIBOR(1) + 2.75% |  | 67,500 |  |  | — |
Mortgage loan(11) |  | 2 hotels |  | November 2019 |  | LIBOR(1) + 2.65% |  | 190,481 |  |  | 192,765 |
Mortgage loan |  | 1 hotel |  | May 2022 |  | LIBOR(1) + 2.55% |  | 51,000 |  |  | — |
Mortgage loan(6) |  | 1 hotel |  | August 2022 |  | LIBOR(1) + 2.55% |  | 40,000 |  |  | — |
|  |  |  |  |  |  |  | 914,079 |  |  | 766,964 |
Deferred loan costs, net |  |  |  |  |  |  |  | (7,259 | ) |  | (2,348 | )
Indebtedness, net |  |  |  |  |  |  |  | $ | 906,820 |  |  | $ | 764,616 |
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(1) | LIBOR rates were 1.232% and 0.772% at September 30, 2017 and December 31, 2016, 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, (ii) federal funds rate + 0.5%, or (iii) LIBOR + 1.0%.
(3) | Our borrowing capacity under our secured revolving credit facility is $100.0 million. We have an option, subject to lender approval, to further increase the borrowing capacity to an aggregate of $250.0 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) | On January 18, 2017, we refinanced three mortgage loans totaling $333.7 million set to mature in April 2017 with a new $365.0 million mortgage loan with a two-year initial term and five one-year extension options subject to the satisfaction of certain conditions. The new loan is interest only and bears interest at a rate of LIBOR + 2.58%.
(5) | These loans are collateralized by the same hotel property. This hotel property is now included in the $365 million mortgage loan.
(6) | On August 18, 2017, we refinanced our $40.0 million mortgage loan with a final maturity date in December 2020 with a new $40.0 million mortgage loan that is interest only at a rate of LIBOR + 2.55% and has a five-year term.
(7) | This mortgage loan has three one-year extension options, subject to satisfaction of certain conditions.
(8) | This mortgage loan has three one-year extension options, subject to satisfaction of certain conditions, of which the second was exercised in March 2017.
(9) | This mortgage loan has three one-year extension options, subject to satisfaction of certain conditions, of which the first was exercised in March 2017.
(10) | The interest expense from the TIF loan is offset against interest income recorded on the note receivable of the same amount. See note 5.
(11) | This mortgage loan has two one-year extension options, subject to satisfaction of certain conditions.
On January 18, 2017, we refinanced three mortgage loans with existing outstanding balances totaling approximately $333.7 million. The previous mortgage loans had final maturity dates in April 2017. The new mortgage loan totals $365.0 million and has a stated maturity of February 2019 with five one-year extension options, subject to the satisfaction of certain conditions. The mortgage loan is interest only and provides for a floating interest rate of LIBOR + 2.58%. The mortgage loan is secured by five hotel properties: Plano Marriott Legacy Town Center, Seattle Marriott Waterfront, Tampa Renaissance, San Francisco Courtyard Downtown and Philadelphia Courtyard Downtown. On March 31, 2017, in connection with the acquisition of the Park Hyatt Beaver Creek, we completed the financing of a $67.5 million mortgage loan. This mortgage loan is interest only and provides for a floating interest rate of LIBOR + 2.75%. The stated maturity date of the mortgage loan is April 2019, with three one-year extension options, subject to the satisfaction of certain conditions. The mortgage loan is secured by the Park Hyatt Beaver Creek. On May 11, 2017, in connection with the acquisition of the Hotel Yountville, we completed the financing of a $51.0 million mortgage loan. This mortgage loan is interest only and provides for a floating interest rate of LIBOR + 2.55%. The stated maturity date of the mortgage loan is May 2022. The mortgage loan is secured by the Hotel Yountville. On August 18, 2017, we refinanced our existing $40.0 million mortgage loan with a final maturity date in December 2020 with a new $40.0 million mortgage loan that is interest only, provides for a floating interest rate of LIBOR + 2.55% and has a stated maturity date of August 2022. The mortgage loan is secured by the Bardessono Hotel. 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, 2017, we were in compliance in all material respects with all covenants or other requirements set forth in our debt agreements as amended.

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