Debt (Tables)

3 Months Ended

Mar. 31, 2017

Debt Disclosure [Abstract]

Summary of long term debt

The following table sets forth information regarding the Company’s debt as of March 31, 2017 (dollars in thousands):

Property	Principal Balance			Interest Rate	Maturity Date
Lexington Hotel New York	$	170,368		LIBOR + 2.25% (1)	October 2017 (2)
Salt Lake City Marriott Downtown	57,926			4.25%	November 2020
Westin Washington D.C. City Center	66,343			3.99%	January 2023
The Lodge at Sonoma, a Renaissance Resort & Spa	28,739			3.96%	April 2023
Westin San Diego	65,918			3.94%	April 2023
Courtyard Manhattan / Midtown East	85,098			4.40%	August 2024
Renaissance Worthington	85,000			3.66%	May 2025
JW Marriott Denver at Cherry Creek	64,308			4.33%	July 2025
Boston Westin	200,598			4.36%	November 2025
Unamortized debt issuance costs	(5,698		)
Total mortgage debt, net of unamortized debt issuance costs	818,600
Unsecured term loan	100,000			LIBOR + 1.45% (3)	May 2021
Unamortized debt issuance costs	(591		)
Unsecured term loan, net of unamortized debt issuance costs	99,409
Senior unsecured credit facility	—			LIBOR + 1.50%	May 2020 (4)
Total debt, net of unamortized debt issuance costs	$	918,009
Weighted-Average Interest Rate				3.80%

_______________________

(1) The interest rate as of March 31, 2017 was 3.04%.

(2) The loan was repaid in full on April 26, 2017.

(3) The interest rate as of March 31, 2017 was 2.27%.

(4) The credit facility may be extended for an additional year upon the payment of applicable fees and the satisfaction of certain customary conditions.

Summary of applicable margin based upon the Company’s ratio of net indebtedness to EBITDA

The applicable margin is based upon the Company’s leverage ratio, as follows:

Leverage Ratio	Applicable Margin
Less than or equal to 35%	1.45	%
Greater than 35% but less than or equal to 45%	1.60	%
Greater than 45% but less than or equal to 50%	1.75	%
Greater than 50% but less than or equal to 55%	1.95	%
Greater than 55%	2.20	%

The applicable margin is based upon the Company’s leverage ratio, as follows:

Leverage Ratio	Applicable Margin
Less than or equal to 35%	1.50	%
Greater than 35% but less than or equal to 45%	1.65	%
Greater than 45% but less than or equal to 50%	1.80	%
Greater than 50% but less than or equal to 55%	2.00	%
Greater than 55%	2.25	%

Summary of the most restrictive covenants for senior unsecured credit facility

The facility also contains various corporate financial covenants. A summary of the most restrictive covenants is as follows:

		Actual at
	Covenant	March 31, 2017
Maximum leverage ratio (1)	60%	25.2%
Minimum fixed charge coverage ratio (2)	1.50x	4.65x
Minimum tangible net worth (3)	$1.91 billion	$2.55 billion
Secured recourse indebtedness	Less than 45% of Total Asset Value	26.8%

_____________________________

(1) Leverage ratio is net indebtedness, as defined in the credit agreement, divided by total asset value, defined in the credit agreement as the value of our owned hotels based on hotel net operating income divided by a defined capitalization rate.

(2) Fixed charge coverage ratio is Adjusted EBITDA, generally defined in the credit agreement as EBITDA less FF&E reserves, for the most recently ending 12 months, to fixed charges, which is defined in the credit agreement as interest expense, all regularly scheduled principal payments and payments on capitalized lease obligations, for the same most recently ending 12-month period.

(3) Tangible net worth, as defined in the credit agreement, is (i) total gross book value of all assets, exclusive of depreciation and amortization, less intangible assets, total indebtedness, and all other liabilities, plus (ii) 75% of net proceeds from future equity issuances.