Debt

Consolidated debt consisted of the following (dollars in thousands):



	Encumbered Hotels		Interest Rate (%)		Maturity Date	March 31, 2012		December 31, 2011
Line of credit^(a)	11		L + 4.50		August 2014^(b)	$	36,000	$	—
Hotel mortgage debt
Mortgage debt	8		L + 5.10	^(c)	April 2015	202,767		202,982
Mortgage debt	9		L + 2.20		May 2013^(d)	148,504		156,398
Mortgage debt	7		9.02		April 2014	108,473		109,044
Mortgage debt	5	^(e)	6.66		June - August 2014	66,895		67,375
Mortgage debt	1		5.81		July 2016	10,760		10,876
Senior notes
Senior secured notes	6		6.75		June 2019	525,000		525,000
Senior secured notes^(f)	11		10.00		October 2014	462,346		459,931
Other^(g)	—		L + 1.50		December 2012	64,860		64,860
Total	58					$	1,625,605	$	1,596,466


(a)	We currently have $189 million available under our $225 million line of credit.


(b)	The line of credit can be extended for one year (to 2015), subject to satisfying certain conditions.


(c)	LIBOR (for this loan) is subject to a 3% floor. We purchased an interest rate cap ($212 million notional amount) that caps LIBOR at 5% and expires May 2012.


(d)	This loan can be extended for six months, subject to satisfying certain conditions.


(e)	The hotels securing this debt are subject to separate loan agreements and are not cross-collateralized.


(f)	These notes have $492 million in aggregate principal outstanding ($144 million and $96,000 in aggregate principal amount was redeemed in June 2011 and January 2012, respectively) and were initially sold at a discount that provided an effective yield of 12.875% before transaction costs.

(g)

This loan is related to our Knickerbocker development project and is fully secured by restricted cash and a mortgage. Because we were able to assume an existing loan when we purchased this hotel, we were not required to pay any local mortgage recording tax. When that loan is transferred to a new lender and made part of our construction loan, we expect to only pay such tax to the extent of the incremental principal amount of the construction loan.


3.	Debt — (continued)

In March 2011, we established a $225 million secured line of credit with a group of seven banks. At the same time, we repaid a $198.3 million secured loan and a $28.8 million secured loan with a combination of $52.1 million of cash on hand and funds drawn under our line of credit (which was subsequently repaid). The repaid loans would have matured in 2013 and 2012 (including extensions), respectively, and were secured by mortgages on 11 hotels. Those same hotels secure repayment of amounts outstanding under the line of credit. The credit facility bears interest at LIBOR, plus 4.5%, with no LIBOR floor. At March 31, 2012, we have an outstanding balance of $36.0 million drawn on the line of credit.

We reported $31.0 million and $32.8 million of interest expense for the three months ended March 31, 2012 and 2011, respectively, which is net of: (i) interest income of $48,000 and $41,000 and (ii) capitalized interest of $3.3 million and $198,000, respectively.