Debt Disclosure [Text Block] | 5. Debt $965 Million Credit Facility On May 18, 2015, the Company entered into an amendment and restatement of its unsecured $345 million credit facility, increasing the borrowing capacity to $965 million, reducing the annual interest rate and extending the maturity dates. The unsecured “$965 million credit facility” is comprised of (i) a $540 million revolving credit facility with an initial maturity date of May 18, 2019 (the “revolving credit facility”) and (ii) a $425 million term loan facility with a maturity date of May 18, 2020, consisting of three term loans, of which $212.5 million was funded on May 18, 2015, $110.0 million was funded on July 1, 2015, and $102.5 million was funded on August 14, 2015 (the “$425 million term loans”). Subject to certain conditions including covenant compliance and additional fees, the revolving credit facility maturity date may be extended one year and the amount of the total credit facility may be increased from $965 million to $1.25 billion. The Company may make voluntary prepayments in whole or in part, at any time. Interest payments on the $965 million credit facility are due monthly and the interest rate, subject to certain exceptions, is equal to an annual rate of the one-month LIBOR (the London Inter-Bank Offered Rate for a one-month term) plus a margin ranging from 1.50% to 2.30%, depending upon the Company’s leverage ratio, as calculated under the terms of the credit agreement. In conjunction with the $425 million term loans, the Company entered into two interest rate swap agreements, which effectively fix the interest rate on $322.5 million of the outstanding balance at approximately 3.10%, subject to adjustment based on the Company’s leverage ratio, through maturity. See Note 6 for more information on the interest rate swap agreements. The Company is also required to pay quarterly an unused facility fee at an annual rate of 0.20% or 0.30% on the unused portion of the revolving credit facility, based on the amount of borrowings outstanding during the quarter. $150 Million Term Loan Facility On April 8, 2016, the Company entered into an unsecured $150 million term loan facility with a syndicate of commercial banks (the “$150 million term loan facility”), consisting of a term loan of up to $50 million that will mature on April 8, 2021 (the “$50 million term loan”) and a term loan of up to $100 million that will mature on April 8, 2023 (the “$100 million term loan,” and collectively with the $50 million term loan, the “$150 million term loans”). The Company initially borrowed $50 million under the $150 million term loan facility on April 8, 2016 and borrowed the remaining $100 million on September 30, 2016. The credit agreement contains requirements and covenants similar to the Company’s $965 million credit facility. The Company may make voluntary prepayments in whole or in part, at any time, subject to certain conditions. Interest payments on the $150 million term loan facility are due monthly and the interest rate is equal to an annual rate of the one-month LIBOR plus a margin ranging from 1.45% to 2.20% for the $50 million term loan and 1.80% to 2.60% for the $100 million term loan, depending upon the Company’s leverage ratio, as calculated under the terms of the credit agreement. The Company also entered into two interest rate swap agreements which, beginning on September 30, 2016, effectively fix the interest rate on the $50 million term loan and $100 million term loan at 2.54% and 3.13%, respectively, subject to adjustment based on the Company’s leverage ratio, through maturity. See Note 6 for more information on the interest rate swap agreements. Proceeds from the $150 million term loan facility were used to pay down outstanding balances under the Company’s revolving credit facility with the intent to use the increased availability to repay scheduled mortgage debt maturities through the end of the first quarter of 2017. As of September 30, 2016 and December 31, 2015, the details of the Company’s revolving credit facility, $425 million term loans and $150 million term loans were as set forth below. All dollar amounts are in thousands. As of September 30, 2016 As of December 31, 2015 Maturity Date Outstanding Balance Interest Rate Outstanding Balance Interest Rate Revolving credit facility (1) 5/18/2019 $ 302,100 2.08 % (2) $ 114,800 1.98 % (2) Term loans $425 million term loans 5/18/2020 425,000 2.84 % (3) 425,000 2.81 % (3) $50 million term loan 4/8/2021 50,000 2.54 % (4) 0 - $100 million term loan 4/8/2023 100,000 3.13 % (4) 0 - Total term loans at stated value 575,000 425,000 Unamortized debt issuance costs (4,330 ) (3,556 ) Total term loans 570,670 421,444 Total revolving credit facility and term loans $ 872,770 $ 536,244 (1) Unamortized debt issuance costs related to the revolving credit facility totaled approximately $3.1 million and $4.0 million as of September 30, 2016 and December 31, 2015, respectively, and are included in other assets, net in the Company’s consolidated balance sheets. (2) Annual variable interest rate at the balance sheet date. (3) Effective annual interest rate which includes the effect of interest rate swaps on $322.5 million of the outstanding loan balance, resulting in an annual fixed interest rate of approximately 3.10% on this portion of the debt, subject to adjustment based on the Company’s leverage ratio. See Note 6 for more information on the interest rate swap agreements. Remaining portion is variable rate debt. (4) Annual fixed interest rate at the balance sheet date which includes the effect of an interest rate swap on the outstanding loan balance, subject to adjustment based on the Company’s leverage ratio. See Note 6 for more information on the interest rate swap agreements. The credit agreements governing the $965 million credit facility and $150 million term loan facility contain mandatory prepayment requirements, customary affirmative covenants, negative covenants and events of default. The credit agreements require that the Company comply with various covenants, which include, among others, a minimum tangible net worth, maximum debt limits, minimum interest and fixed charge coverage ratios, limits on dividend payments and share repurchases and restrictions on certain investments. The Company was in compliance with the applicable covenants at September 30, 2016. Mortgage Debt As of September 30, 2016, the Company had approximately $474.3 million in outstanding property level debt secured by 34 properties, with maturity dates ranging from November 2016 to June 2026, stated interest rates ranging from 0% to 6.25% and effective interest rates ranging from 3.80% to 6.52%. The loans generally provide for monthly payments of principal and interest on an amortized basis. The loans are generally subject to defeasance or prepayment penalties if prepaid. The following table sets forth the hotel properties securing each loan, the interest rate, loan assumption or origination date, maturity date, the principal amount assumed or originated, and the outstanding balance prior to any fair value adjustments or debt issuance costs as of September 30, 2016 and December 31, 2015 for each of the Company’s debt obligations. All dollar amounts are in thousands. Location Brand Interest Rate (1) Loan Assumption or Origination Date Maturity Date Principal Assumed or Originated Outstanding balance as of September 30, 2016 Outstanding balance as of December 31, 2015 Austin, TX Homewood Suites 5.99 % 4/14/2009 (2) $ 7,556 $ 0 $ 6,255 Austin, TX Hampton Inn 5.95 % 4/14/2009 (2) 7,553 0 6,247 Hilton Head, SC Hilton Garden Inn 6.29 % 3/1/2014 (2) 5,557 0 5,226 Round Rock, TX Hampton Inn 5.95 % 3/6/2009 (2) 4,175 0 3,457 Highlands Ranch, CO Residence Inn 5.94 % 3/1/2014 (2) 10,494 0 10,118 Texarkana, TX Hampton Inn & Suites 6.90 % 1/31/2011 (2) 4,954 0 4,578 Bristol, VA Courtyard 6.59 % 11/7/2008 (2) 9,767 0 8,747 Oceanside, CA Residence Inn 4.24 % (3) 3/1/2014 (2) 15,662 0 15,090 Burbank, CA Residence Inn 4.24 % (3) 3/1/2014 (2) 23,493 0 22,635 Malvern/Philadelphia, PA Courtyard 6.50 % 11/30/2010 (2) 7,894 0 6,912 Winston-Salem, NC Courtyard 5.94 % 3/1/2014 (2) 7,458 0 7,220 Virginia Beach, VA Courtyard 6.02 % 3/1/2014 (2) 13,931 0 13,399 Virginia Beach, VA Courtyard 6.02 % 3/1/2014 (2) 16,813 0 16,172 Charlottesville, VA Courtyard 6.02 % 3/1/2014 (2) 14,892 0 14,323 Carolina Beach, NC Courtyard 6.02 % 3/1/2014 (2) 12,009 0 11,551 Savannah, GA Hilton Garden Inn 5.87 % 3/1/2014 (4) 4,977 4,563 4,688 Scottsdale, AZ Hilton Garden Inn 6.07 % 9/1/2016 (4) 9,668 9,651 0 Lewisville, TX (5) Hilton Garden Inn 0.00 % 10/16/2008 12/31/2016 3,750 2,000 2,000 Greenville, SC Residence Inn 6.03 % 3/1/2014 2/8/2017 6,012 5,722 5,810 Birmingham, AL Homewood Suites 6.03 % 3/1/2014 2/8/2017 10,908 10,382 10,541 Jacksonville, FL Homewood Suites 6.03 % 3/1/2014 2/8/2017 15,856 15,091 15,322 Irving, TX Homewood Suites 5.83 % 12/29/2010 4/11/2017 6,052 5,120 5,260 Gainesville, FL Homewood Suites 5.89 % 9/1/2016 5/8/2017 12,051 12,031 0 Duncanville, TX Hilton Garden Inn 5.88 % 10/21/2008 5/11/2017 13,966 12,197 12,401 San Juan Capistrano, CA Residence Inn 4.15 % 9/1/2016 6/1/2020 16,210 16,184 0 Colorado Springs, CO Hampton Inn & Suites 6.25 % 9/1/2016 7/6/2021 7,923 7,914 0 Franklin, TN Courtyard 6.25 % 9/1/2016 8/6/2021 14,679 14,662 0 Franklin, TN Residence Inn 6.25 % 9/1/2016 8/6/2021 14,679 14,662 0 Grapevine, TX Hilton Garden Inn 4.89 % 8/29/2012 9/1/2022 11,810 10,779 10,986 Collegeville/Philadelphia, PA Courtyard 4.89 % 8/30/2012 9/1/2022 12,650 11,546 11,768 Hattiesburg, MS Courtyard 5.00 % 3/1/2014 9/1/2022 5,732 5,393 5,495 Rancho Bernardo, CA Courtyard 5.00 % 3/1/2014 9/1/2022 15,060 14,168 14,436 Kirkland, WA Courtyard 5.00 % 3/1/2014 9/1/2022 12,145 11,425 11,642 Seattle, WA Residence Inn 4.96 % 3/1/2014 9/1/2022 28,269 26,584 27,091 Anchorage, AK Embassy Suites 4.97 % 9/13/2012 10/1/2022 23,230 21,272 21,675 Somerset, NJ Courtyard 4.73 % 3/1/2014 10/6/2022 8,750 8,216 8,376 Tukwila, WA Homewood Suites 4.73 % 3/1/2014 10/6/2022 9,431 8,854 9,028 Prattville, AL Courtyard 4.12 % 3/1/2014 2/6/2023 6,596 6,167 6,296 Huntsville, AL Homewood Suites 4.12 % 3/1/2014 2/6/2023 8,306 7,766 7,928 San Diego, CA Residence Inn 3.97 % 3/1/2014 3/6/2023 18,600 17,374 17,741 Miami, FL Homewood Suites 4.02 % 3/1/2014 4/1/2023 16,677 15,591 15,915 New Orleans, LA Homewood Suites 4.36 % 7/17/2014 8/11/2024 27,000 25,738 26,204 Westford, MA Residence Inn 4.28 % 3/18/2015 4/11/2025 10,000 9,684 9,854 Dallas, TX Hilton 3.95 % 5/22/2015 6/1/2025 28,000 27,375 27,754 Syracuse, NY Courtyard 4.75 % 10/16/2015 8/1/2024 (6) 11,199 10,970 11,158 Syracuse, NY Residence Inn 4.75 % 10/16/2015 8/1/2024 (6) 11,199 10,970 11,158 Denver, CO Hilton Garden Inn 4.46 % 9/1/2016 6/11/2025 34,118 34,055 0 Oceanside, CA Courtyard 4.28 % 9/1/2016 10/1/2025 13,655 13,636 0 Omaha, NE Hilton Garden Inn 4.28 % 9/1/2016 10/1/2025 22,682 22,649 0 Boise, ID Hampton Inn & Suites 4.37 % 5/26/2016 6/11/2026 24,000 23,908 0 $ 658,048 474,299 462,457 Unamortized fair value adjustment of assumed debt 5,666 1,284 Unamortized debt issuance costs (3,560 ) (1,882 ) Total $ 476,405 $ 461,859 (1) Unless otherwise noted, these rates are the rates per the loan agreement. For loans assumed, the Company adjusted the interest rates per the loan agreement to market rates and is amortizing the adjustments to interest expense over the life of the loan. (2) Loans were repaid in full during the nine months ended September 30, 2016. (3) The annual fixed interest rate gives effect to an interest rate swap agreement assumed by the Company with the mortgage debt. (4) Loans were repaid in full on November 1, 2016. (5) Unsecured loan. (6) Outstanding principal balance is callable by lender or prepayable by the Company on August 1, 2019. The aggregate amounts of principal payable under the Company’s total debt obligations (including mortgage debt, the revolving credit facility and term loans), for the five years subsequent to September 30, 2016 and thereafter are as follows (in thousands): 2016 (October - December) $ 49,871 2017 38,502 2018 9,785 2019 332,477 2020 449,788 Thereafter 470,976 1,351,399 Unamortized fair value adjustment of assumed debt 5,666 Unamortized debt issuance costs related to term loans and mortgage debt (7,890 ) Total $ 1,349,175 Upon completion of the merger on September 1, 2016, the Company assumed approximately $145.7 million in mortgage debt, prior to any fair value adjustments, secured by nine properties. This assumed mortgage debt had maturity dates ranging from February 2017 to October 2025 and stated interest rates ranging from 4.15% to 6.25%. A fair value premium adjustment totaling approximately $6.2 million was recorded upon the assumption of above market rate mortgages. The total fair value adjustment will be amortized as a reduction to interest expense over the remaining term of the respective mortgages using a method approximating the effective interest rate method. The effective interest rates on the applicable debt obligations ranged from 3.80% to 4.23% at the date of assumption. The Company incurred loan origination costs related to the assumption of the mortgage obligations totaling approximately $0.6 million. Such costs are amortized over the period to maturity of the applicable mortgage loan, as an addition to interest expense. |