Debt Disclosure [Text Block] | 5. Debt $965 Million Credit Facility The Company utilizes an unsecured “$965 million credit facility” 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, all funded during 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, using the increased availability to repay scheduled mortgage debt maturities through the end of the first quarter of 2017. As of March 31, 2017 and December 31, 2016, 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 March 31, 2017 As of December 31, 2016 Maturity Date Outstanding Balance Interest Rate Outstanding Balance Interest Rate Revolving credit facility (1) 5/18/2019 $ 366,600 2.53 % (2) $ 270,000 2.32 % (2) Term loans $425 million term loans 5/18/2020 425,000 2.95 % (3) 425,000 2.90 % (3) $50 million term loan 4/8/2021 50,000 2.54 % (4) 50,000 2.54 % (4) $100 million term loan 4/8/2023 100,000 3.13 % (4) 100,000 3.13 % (4) Total term loans at stated value 575,000 575,000 Unamortized debt issuance costs (3,803 ) (4,066 ) Total term loans 571,197 570,934 Total revolving credit facility and term loans $ 937,797 $ 840,934 (1) Unamortized debt issuance costs related to the revolving credit facility totaled approximately $2.5 million and $2.8 million as of March 31, 2017 and December 31, 2016, 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 March 31, 2017. Mortgage Debt As of March 31, 2017, the Company had approximately $462.5 million in outstanding property level debt secured by 29 properties, with maturity dates ranging from June 2020 to December 2026, stated interest rates ranging from 3.55% to 6.25% and effective interest rates ranging from 3.55% to 4.97%. The loans generally provide for monthly payments of principal and interest on an amortized basis and 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 March 31, 2017 and December 31, 2016 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 March 31, 2017 Outstanding balance as of December 31, 2016 Irving, TX Homewood Suites 5.83 % 12/29/2010 (2) $ 6,052 $ 0 $ 5,072 Gainesville, FL Homewood Suites 5.89 % 9/1/2016 (2) 12,051 0 11,966 Duncanville, TX Hilton Garden Inn 5.88 % 10/21/2008 (2) 13,966 0 12,126 San Juan Capistrano, CA Residence Inn 4.15 % 9/1/2016 6/1/2020 16,210 16,020 16,104 Colorado Springs, CO Hampton 6.25 % 9/1/2016 7/6/2021 7,923 7,850 7,883 Franklin, TN Courtyard 6.25 % 9/1/2016 8/6/2021 14,679 14,544 14,604 Franklin, TN Residence Inn 6.25 % 9/1/2016 8/6/2021 14,679 14,544 14,604 Grapevine, TX Hilton Garden Inn 4.89 % 8/29/2012 9/1/2022 11,810 10,633 10,707 Collegeville/Philadelphia, PA Courtyard 4.89 % 8/30/2012 9/1/2022 12,650 11,389 11,468 Hattiesburg, MS Courtyard 5.00 % 3/1/2014 9/1/2022 5,732 5,321 5,357 Rancho Bernardo, CA Courtyard 5.00 % 3/1/2014 9/1/2022 15,060 13,978 14,074 Kirkland, WA Courtyard 5.00 % 3/1/2014 9/1/2022 12,145 11,273 11,350 Seattle, WA Residence Inn 4.96 % 3/1/2014 9/1/2022 28,269 26,227 26,409 Anchorage, AK Embassy Suites 4.97 % 9/13/2012 10/1/2022 23,230 20,989 21,133 Somerset, NJ Courtyard 4.73 % 3/1/2014 10/6/2022 8,750 8,102 8,160 Tukwila, WA Homewood Suites 4.73 % 3/1/2014 10/6/2022 9,431 8,733 8,795 Prattville, AL Courtyard 4.12 % 3/1/2014 2/6/2023 6,596 6,078 6,123 Huntsville, AL Homewood Suites 4.12 % 3/1/2014 2/6/2023 8,306 7,654 7,711 San Diego, CA Residence Inn 3.97 % 3/1/2014 3/6/2023 18,600 17,119 17,248 Miami, FL Homewood Suites 4.02 % 3/1/2014 4/1/2023 16,677 15,364 15,479 Syracuse, NY Courtyard 4.75 % 10/16/2015 8/1/2024 (3) 11,199 10,837 10,905 Syracuse, NY Residence Inn 4.75 % 10/16/2015 8/1/2024 (3) 11,199 10,837 10,905 New Orleans, LA Homewood Suites 4.36 % 7/17/2014 8/11/2024 27,000 25,412 25,577 Westford, MA Residence Inn 4.28 % 3/18/2015 4/11/2025 10,000 9,565 9,626 Dallas, TX (4) Hilton 3.95 % 5/22/2015 6/1/2025 28,000 27,116 27,246 Denver, CO Hilton Garden Inn 4.46 % 9/1/2016 6/11/2025 34,118 33,652 33,857 Oceanside, CA Courtyard 4.28 % 9/1/2016 10/1/2025 13,655 13,516 13,576 Omaha, NE Hilton Garden Inn 4.28 % 9/1/2016 10/1/2025 22,682 22,450 22,550 Boise, ID Hampton 4.37 % 5/26/2016 6/11/2026 24,000 23,713 23,813 Burbank, CA Courtyard 3.55 % 11/3/2016 12/1/2026 25,564 25,404 25,564 San Diego, CA Courtyard 3.55 % 11/3/2016 12/1/2026 25,473 25,314 25,473 San Diego, CA Hampton 3.55 % 11/3/2016 12/1/2026 18,963 18,845 18,963 $ 514,669 462,479 494,428 Unamortized fair value adjustment of assumed debt 5,007 5,229 Unamortized debt issuance costs (2,443 ) (2,628 ) Total $ 465,043 $ 497,029 (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 three months ended March 31, 2017. (3) Outstanding principal balance is callable by lender or prepayable by the Company on August 1, 2019. (4) Assets securing this loan are classified as held for sale as of March 31, 2017. In April 2017, the assets securing this loan were sold, and the loan was assumed by the buyer of those assets. 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 March 31, 2017 and thereafter are as follows (in thousands): 2017 (April - December) $ 8,325 2018 11,620 2019 398,879 2020 451,758 2021 95,928 Thereafter 437,569 1,404,079 Unamortized fair value adjustment of assumed debt 5,007 Unamortized debt issuance costs related to term loans and mortgage debt (6,246 ) Total $ 1,402,840 |