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Debt | 9 Months Ended
--- | ---
Sep. 30, 2019
Debt Disclosure [Abstract] |
Debt | 5. Debt Mortgage Loans, Net. As of September 30, 2019 and December 31, 2018, we had approximately $360.5 million and approximately $364.8 million of outstanding mortgage debt, respectively. The following table sets forth our mortgage debt obligations on our hotels.
| Balance Outstanding as of |  |  |  |  |  |  |  |  |  |  |  |
| September 30, |  |  | December 31, |  |  | Prepayment |  | Maturity |  | Amortization |  | Interest |  |
Property | 2019 |  |  | 2018 |  |  | Penalties |  | Date |  | Provisions |  | Rate |  |
| (unaudited) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
The DeSoto (1) | $ | 33,256,944 |  |  | $ | 33,824,350 |  |  | Yes |  | 7/1/2026 |  | 25 years |  | 4.25% |  |
DoubleTree by Hilton Jacksonville Riverfront (2) |  | 34,366,547 |  |  |  | 34,773,546 |  |  | Yes |  | 7/11/2024 |  | 30 years |  | 4.88% |  |
DoubleTree by Hilton Laurel (3) |  | 8,614,350 |  |  |  | 8,845,299 |  |  | Yes |  | 8/5/2021 |  | 25 years |  | 5.25% |  |
DoubleTree by Hilton Philadelphia Airport (4) |  | 41,580,419 |  |  |  | 42,026,986 |  |  | None |  | 7/31/2023 |  | 30 years |  | LIBOR plus 2.27 % |  |
DoubleTree by Hilton Raleigh- Brownstone University (5) |  | 18,300,000 |  |  |  | 18,300,000 |  |  | Yes |  | 7/27/2022 |  | (5) |  | LIBOR plus 4.00 % |  |
DoubleTree Resort by Hilton Hollywood Beach (6) |  | 56,396,039 |  |  |  | 57,064,824 |  |  | n/a |  | 10/1/2025 |  | 30 years |  | 4.913% |  |
Georgian Terrace (7) |  | 43,627,014 |  |  |  | 44,202,968 |  |  | n/a |  | 6/1/2025 |  | 30 years |  | 4.42% |  |
Hotel Alba Tampa, Tapestry Collection by Hilton (8) |  | 18,107,352 |  |  |  | 18,307,000 |  |  | None |  | 6/30/2022 |  | (8) |  | LIBOR plus 3.75 % |  |
Hotel Ballast Wilmington, Tapestry Collection by Hilton(9) |  | 33,683,726 |  |  |  | 34,236,104 |  |  | Yes |  | 1/1/2027 |  | 25 years |  | 4.25% |  |
Hyatt Centric Arlington (10) | $ | 49,355,146 |  |  |  | 49,885,045 |  |  | Yes |  | 9/18/2028 |  | 30 years |  | 5.25% |  |
Sheraton Louisville Riverside (11) |  | 11,215,621 |  |  |  | 11,414,300 |  |  | Yes |  | 12/1/2026 |  | 25 years |  | 4.27% |  |
The Whitehall (12) |  | 14,527,731 |  |  |  | 14,733,458 |  |  | Yes |  | 2/26/2023 |  | 25 years |  | LIBOR plus 3.50 % |  |
Total Mortgage Principal Balance | $ | 363,030,889 |  |  | $ | 367,613,880 |  |  |  |  |  |  |  |  |  |  |  |
Deferred financing costs, net |  | (2,628,780 | ) |  |  | (2,951,327 | ) |  |  |  |  |  |  |  |  |  |  |
Unamortized premium on loan |  | 147,781 |  |  |  | 166,292 |  |  |  |  |  |  |  |  |  |  |  |
Total Mortgage Loans, Net | $ | 360,549,890 |  |  | $ | 364,828,845 |  |  |  |  |  |  |  |  |  |  |  |
(1) | The note amortizes on a 25-year schedule after an initial 1-year interest-only period (which expired in August 2017), and is subject to a pre-payment penalty except for any pre-payments made within 120 days of the maturity date.
(2) | The note is subject to a pre-payment penalty until March 2024. Prepayment can be made without penalty thereafter.
(3) | The note is subject to a pre-payment penalty until April 2021. Prepayment can be made without penalty thereafter.
(4) | The note bears a floating interest rate of 1-month LIBOR plus 2.27%, but we entered into a swap agreement to fix the rate at 5.237%. Under the swap agreement, notional amounts approximate the declining balance of the loan and we are responsible for any potential termination fees associated with early termination of the swap agreement.
(5) | The note provides initial proceeds of $18.3 million, with an additional $5.2 million available upon the satisfaction of certain conditions; has an initial term of 4 years with a 1-year extension; bears a floating interest rate of 1-month LIBOR plus 4.00%; requires interest only monthly payments; and following a 12-month lockout, can be prepaid with penalty in year 2 and without penalty thereafter. We entered into an interest-rate cap agreement to limit our exposure through August 1, 2022 to increases in LIBOR exceeding 3.25% on a notional amount of $23,500,000.
(6) | With limited exception, the note may not be prepaid until June 2025.
(7) | With limited exception, the note may not be prepaid until February 2025.
(8) | The note bears a floating interest rate of 1-month LIBOR plus 3.75% subject to a floor rate of 3.75%; with monthly principal payments of $26,812; the note provides that the mortgage can be extended for two additional periods of one year each, subject to certain conditions.
(9) | The note amortizes on a 25-year schedule after an initial 1-year interest-only period, and is subject to a pre-payment penalty except for any pre-payments made within 120 days of the maturity date.
(10) | Following a 5-year lockout, the note can be prepaid with penalty in years 6-10 and without penalty during the final 4 months of the term.
(11) | The note bears a fixed interest rate of 4.27% for the first 5 years of the loan, with an option for the lender to reset the interest rate after 5 years.
(12) | The note bears a floating interest rate of 1-month LIBOR plus 3.5%, subject to a floor rate of 4.0%, and is subject to prepayment penalties on a declining scale with a 3.0% penalty on or before the first anniversary date, a 2.0% penalty during the second anniversary year and a 1.0% penalty after the third anniversary date.
As of September 30, 2019, we were in compliance with all debt covenants, current on all loan payments and not otherwise in default under any of our mortgage loans, as amended or modified, with the exception of the mortgage on the Hotel Alba, for which we failed to meet the quarterly Debt Service Coverage Ratio (“DSCR”) requirement. The loan agreement contains a balancing provision that allows us to pay down the principal balance of the loan or provide cash collateral. Should we be unable to obtain a waiver, we believe cash collateral of approximately $2.9 million will be required until the quarterly DSCR requirement is met. Total future mortgage debt maturities for the remaining three and twelve month periods, without respect to any extension of loan maturity, were as follows:
For the remaining three months ending December 31, 2019 | $ | 1,611,840 |
December 31, 2020 |  | 6,611,161 |
December 31, 2021 |  | 14,815,761 |
December 31, 2022 |  | 42,273,913 |
December 31, 2023 |  | 59,921,466 |
December 31, 2024 and thereafter |  | 237,796,748 |
Total future maturities | $ | 363,030,889 |
7.25% Unsecured Notes. On February 12, 2018, the Operating Partnership issued its 7.25% Notes in the aggregate amount of $25.0 million, unconditionally guaranteed by the Company. The indenture requires quarterly payments of interest and was to mature on February 15, 2021. The 7.25% Notes were redeemed on May 20, 2019 at 101% of face value.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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