Debt Disclosure [Text Block] | 4 . Debt $965 Million Credit Facility Prior to the Company’s debt refinancing in July 2018 as discussed below, the Company utilized an unsecured “$965 million credit facility” comprised of (i) a $540 million revolving credit facility with an initial maturity date of May 18, 2019 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”). Interest payments on the $965 million credit facility were due monthly and the interest rate, subject to certain exceptions, was 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. The Company was 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 Prior to the Company’s debt refinancing in August 2018 as discussed below, the Company utilized an unsecured $150 million term loan facility (the “$150 million term loan facility”), consisting of a $50 million term loan with a maturity date of April 8, 2021 (the “$50 million term loan”) and a $100 million term loan with a maturity date of April 8, 2023 (the “$100 million term loan,” and collectively with the $50 million term loan, the “$150 million term loans”). The credit agreement contained requirements and covenants similar to the Company’s $965 million credit facility. Interest payments on the $150 million term loan facility were due monthly and the interest rate was 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. $85 M illion Term Loan On July 25, 2017, the Company entered into an unsecured $85 million term loan with a syndicate of commercial banks, with a maturity date of July 25, 2024 (the “$85 million term loan” and, together with the $425 million term loans and the $150 million term loans, the “term loans”). 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 $85 million term loan are due monthly and the interest rate is equal to an annual rate of the one-month LIBOR plus a margin ranging from 1.80% to 2.60%, depending upon the Company’s leverage ratio, as calculated under the terms of the credit agreement. In conjunction with the Company’s debt refinancing discussed below, the requirements and covenants under the $85 million term loan agreement were amended to be similar to the refinanced facilities’ credit agreements. As of June 30, 2018 and December 31, 2017, the details of the Company’s revolving credit facility and term loans were as set forth below. All dollar amounts are in thousands. As of June 30, 2018 As of December 31, 2017 Maturity Date Outstanding Balance Interest Rate Outstanding Balance Interest Rate Revolving credit facility (1) 5/18/2019 $ 218,400 3.64 % (2) $ 106,900 3.11 % (2) Term loans $425 million term loans 5/18/2020 425,000 3.21 % (3) 425,000 3.09 % (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) $85 million term loan 7/25/2024 85,000 3.76 % (4) 85,000 3.76 % (4) Total term loans at stated value 660,000 660,000 Unamortized debt issuance costs (3,140 ) (3,721 ) Total term loans 656,860 656,279 Total revolving credit facility and term loans $ 875,260 $ 763,179 (1) Unamortized debt issuance costs related to the revolving credit facility totaled approximately $1.1 million and $1.7 million as of June 30, 2018 and December 31, 2017, 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 at the balance sheet date 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 5 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 interest rate swaps on the outstanding loan balance, subject to adjustment based on the Company’s leverage ratio. See Note 5 for more information on the interest rate swap agreements. At June 30, 2018, the credit agreements governing the $965 million credit facility, the $150 million term loan facility and the $85 million term loan contained mandatory prepayment requirements, customary affirmative covenants, negative covenants and events of default. The credit agreements required 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 and restrictions on certain investments. The Company was in compliance with the applicable covenants at June 30, 2018. 2018 Debt Refinancing On July 27, 2018, the Company entered into an amendment and restatement of its $965 million credit facility, reducing the borrowing capacity to $850 million and extending the maturity dates (the “$850 million credit facility”). The $850 million credit facility is comprised of (i) a $425 million revolving credit facility with an initial maturity date of July 27, 2022 and (ii) a $425 million term loan facility consisting of two term loans: a $200 million term loan with a maturity date of July 27, 2023, and a $225 million term loan with a maturity date of January 31, 2024, both funded at closing. At closing, the Company repaid the outstanding $425 million term loans under the $965 million credit facility with the proceeds from the $425 million term loan facility and borrowed approximately $196 million under the $425 million revolving credit facility to repay the outstanding balance on its $540 million revolving credit facility and to pay closing costs. Subject to certain conditions including covenant compliance and additional fees, the $425 million revolving credit facility maturity date may be extended up to one year. The credit agreement for the $850 million credit facility contains requirements and covenants similar to the previous credit agreement for the $965 million credit facility. The Company may make voluntary prepayments in whole or in part, at any time. Interest payments on the $850 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 plus a margin ranging from 1.35% to 2.25%, depending upon the Company’s leverage ratio, as calculated under the terms of the credit agreement. The Company is also required to pay quarterly an unused facility fee at an annual rate of 0.20% or 0.25% on the unused portion of the $425 million revolving credit facility, based on the amount of borrowings outstanding during the quarter. Also, on August 2, 2018, the Company entered into an amendment and restatement of its $150 million term loan facility, increasing the borrowing capacity to $225 million and extending the maturity dates (the “$225 million term loan facility”). The $225 million term loan facility is comprised of (i) a $50 million term loan with a maturity date of August 2, 2023, which was funded at closing, and (ii) a $175 million term loan with a maturity date of August 2, 2025, of which $100 million was drawn at closing and the remaining $75 million may be drawn by the Company no later than January 31, 2019. At closing, the Company repaid the $150 million term loans under the $150 million term loan facility. The credit agreement contains requirements and covenants similar to the $850 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 $225 million term loan facility are due monthly and the interest rate, subject to certain exceptions, is equal to an annual rate of the one-month LIBOR plus a margin ranging from 1.35% to 2.50%, depending upon the Company’s leverage ratio, as calculated under the terms of the credit agreement. A summary of the 2018 debt refinancing is set forth below. All dollar amounts are in thousands. 2018 Refinancing Prior to Refinancing Maturity Maturity Capacity Date Interest Rate Capacity Date Interest Rate Revolving credit facility $ 425,000 7/27/2022 LIBOR + 1.40% - 2.25% $ 540,000 5/18/2019 LIBOR + 1.55% - 2.30% Term loan 200,000 7/27/2023 LIBOR + 1.35% - 2.20% 425,000 5/18/2020 LIBOR + 1.50% - 2.25% Term loan 225,000 1/31/2024 LIBOR + 1.35% - 2.20% Facility total 850,000 965,000 Term loan 50,000 8/2/2023 LIBOR + 1.35% - 2.20% 50,000 4/8/2021 LIBOR + 1.45% - 2.20% Term loan 175,000 8/2/2025 LIBOR + 1.65% - 2.50% 100,000 4/8/2023 LIBOR + 1.80% - 2.60% Facility total 225,000 150,000 Total $ 1,075,000 $ 1,115,000 Mortgage Debt As of June 30, 2018, the Company had approximately $495.4 million in outstanding mortgage debt secured by 31 properties, with maturity dates ranging from June 2020 to January 2038, 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 June 30, 2018 and December 31, 2017 for each of the Company’s mortgage 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 June 30, 2018 Outstanding balance as of December 31, 2017 San Juan Capistrano, CA Residence Inn 4.15 % 9/1/2016 6/1/2020 $ 16,210 $ 15,604 $ 15,774 Colorado Springs, CO Hampton 6.25 % 9/1/2016 7/6/2021 7,923 7,686 7,754 Franklin, TN Courtyard 6.25 % 9/1/2016 8/6/2021 14,679 14,242 14,368 Franklin, TN Residence Inn 6.25 % 9/1/2016 8/6/2021 14,679 14,242 14,368 Grapevine, TX Hilton Garden Inn 4.89 % 8/29/2012 9/1/2022 11,810 10,258 10,412 Collegeville/Philadelphia, PA Courtyard 4.89 % 8/30/2012 9/1/2022 12,650 10,987 11,152 Hattiesburg, MS Courtyard 5.00 % 3/1/2014 9/1/2022 5,732 5,136 5,212 Rancho Bernardo/San Diego, CA Courtyard 5.00 % 3/1/2014 9/1/2022 15,060 13,492 13,692 Kirkland, WA Courtyard 5.00 % 3/1/2014 9/1/2022 12,145 10,881 11,042 Seattle, WA Residence Inn 4.96 % 3/1/2014 9/1/2022 28,269 25,310 25,687 Anchorage, AK Embassy Suites 4.97 % 9/13/2012 10/1/2022 23,230 20,261 20,560 Somerset, NJ Courtyard 4.73 % 3/1/2014 10/6/2022 8,750 7,813 7,932 Tukwila, WA Homewood Suites 4.73 % 3/1/2014 10/6/2022 9,431 8,421 8,549 Prattville, AL Courtyard 4.12 % 3/1/2014 2/6/2023 6,596 5,849 5,943 Huntsville, AL Homewood Suites 4.12 % 3/1/2014 2/6/2023 8,306 7,365 7,483 San Diego, CA Residence Inn 3.97 % 3/1/2014 3/6/2023 18,600 16,467 16,733 Miami, FL Homewood Suites 4.02 % 3/1/2014 4/1/2023 16,677 14,786 15,022 Syracuse, NY Courtyard 4.75 % 10/16/2015 8/1/2024 (2) 11,199 10,498 10,637 Syracuse, NY Residence Inn 4.75 % 10/16/2015 8/1/2024 (2) 11,199 10,498 10,637 New Orleans, LA Homewood Suites 4.36 % 7/17/2014 8/11/2024 27,000 24,578 24,919 Westford, MA Residence Inn 4.28 % 3/18/2015 4/11/2025 10,000 9,263 9,386 Denver, CO Hilton Garden Inn 4.46 % 9/1/2016 6/11/2025 34,118 32,625 33,046 Oceanside, CA Courtyard 4.28 % 9/1/2016 10/1/2025 13,655 13,206 13,332 Omaha, NE Hilton Garden Inn 4.28 % 9/1/2016 10/1/2025 22,682 21,935 22,145 Boise, ID Hampton 4.37 % 5/26/2016 6/11/2026 24,000 23,220 23,422 Burbank, CA Courtyard 3.55 % 11/3/2016 12/1/2026 25,564 24,585 24,917 San Diego, CA Courtyard 3.55 % 11/3/2016 12/1/2026 25,473 24,497 24,828 San Diego, CA Hampton 3.55 % 11/3/2016 12/1/2026 18,963 18,237 18,483 Burbank, CA SpringHill Suites 3.94 % 3/9/2018 4/1/2028 28,470 28,358 - Santa Ana, CA Courtyard 3.94 % 3/9/2018 4/1/2028 15,530 15,469 - San Jose, CA Homewood Suites 4.22 % 12/22/2017 1/1/2038 30,000 29,598 30,000 $ 528,600 495,367 457,435 Unamortized fair value adjustment of assumed debt 3,879 4,330 Unamortized debt issuance costs (2,330 ) (2,748 ) Total $ 496,916 $ 459,017 (1) Interest 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) 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 as of June 30, 2018 (including mortgage debt, the revolving credit facility and term loans), for the five years subsequent to June 30, 2018 and thereafter are as follows (in thousands): 2018 (July - December) $ 6,595 2019 252,205 2020 453,349 2021 97,586 2022 109,252 Thereafter 454,780 1,373,767 Unamortized fair value adjustment of assumed debt 3,879 Unamortized debt issuance costs related to term loans and mortgage debt (5,470 ) Total $ 1,372,176 |