Debt Disclosure [Text Block] | 4. Debt Summary As of March 31, 2019 and December 31, 2018, the Company’s debt consisted of the following (in thousands): March 31, 2019 December 31, 2018 Revolving credit facility $ 190,400 $ 268,800 Term loans, net 728,702 653,382 Mortgage debt, net 486,514 490,060 Debt, net $ 1,405,616 $ 1,412,242 The aggregate amounts of principal payable under the Company’s total debt obligations as of March 31, 2019 (including the revolving credit facility, term loans and mortgage debt), for the five years subsequent to March 31, 2019 and thereafter are as follows (in thousands): 2019 (April - December) $ 30,391 2020 28,349 2021 47,586 2022 299,652 2023 295,615 Thereafter 709,165 1,410,758 Unamortized fair value adjustment of assumed debt 3,203 Unamortized debt issuance costs related to term loans and mortgage debt (8,345 ) Total $ 1,405,616 The Company uses interest rate swaps to manage its interest rate risks on a portion of its variable-rate debt. Throughout the terms of these interest rate swaps, the Company pays a fixed rate of interest and receives a floating rate of interest equal to the London Inter-Bank Offered Rate for a one-month term (“one-month LIBOR”). The swaps are designed to effectively fix the interest payments on variable-rate debt instruments. See Note 5 for more information on the interest rate swap agreements. The Company’s total fixed-rate and variable-rate debt, after giving effect to its interest rate swaps, is set forth below. All dollar amounts are in thousands. March 31, 2019 Percentage December 31, 2018 Percentage Fixed-rate debt (1) $ 1,092,858 77 % $ 1,046,273 74 % Variable-rate debt (2) 317,900 23 % 371,300 26 % Total $ 1,410,758 $ 1,417,573 Weighted-average interest rate of debt 3.80 % 3.74 % (1) Fixed-rate debt includes the portion of variable-rate debt where the interest payments have been effectively fixed by interest rate swaps as of the respective balance sheet date. See Note 5 for more information on the interest rate swap agreements. (2) The Company has two forward interest rate swaps that begin in 2020 that will effectively fix the interest rate on an additional $75 million of the Company's variable-rate debt. See Note 5 for more information on the interest rate swap agreements. Revolving Credit Facility and Term Loans $850 Million Credit Facility On July 27, 2018, the Company entered into an amendment and restatement of its then outstanding unsecured $965 million credit facility, which was repaid at closing, reducing the borrowing capacity to $850 million, reducing the annual interest rate 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 (the “$425 million term loan facility”). At closing, the Company repaid the $425 million outstanding under the term loans of the $965 million credit facility with the proceeds from the $425 million term loan facility under the $850 million credit facility and borrowed approximately $196 million under the $425 million revolving credit facility to repay the outstanding balance of the extinguished 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 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. $225 Million Term Loan Facility On August 2, 2018, the Company entered into an amendment and restatement of its then outstanding $150 million term loan facility, which was repaid at closing, increasing the borrowing capacity to $225 million, reducing the annual interest rate 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 was drawn on January 29, 2019. At closing, the Company repaid the $150 million outstanding under the $150 million term loan facility with the proceeds from the $225 million term loan facility. The credit agreement contains requirements and covenants similar to the Company’s $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. $85 Million 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 $850 million credit facility and the $225 million term loan facility, the “credit facilities”). Although no material terms were changed, the credit agreement was amended and restated in August 2018 as a result of the refinancings noted above. The amended and restated credit agreement contains requirements and covenants similar to the Company’s $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 $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. As of March 31, 2019 and December 31, 2018, the details of the Company’s credit facilities were as set forth below. All dollar amounts are in thousands. Outstanding Balance Interest Rate Maturity Date March 31, 2019 December 31, 2018 Revolving credit facility (1) LIBOR + 1.40% - 2.25% 7/27/2022 $ 190,400 $ 268,800 Term loans $200 million term loan LIBOR + 1.35% - 2.20% 7/27/2023 200,000 200,000 $225 million term loan LIBOR + 1.35% - 2.20% 1/31/2024 225,000 225,000 $50 million term loan LIBOR + 1.35% - 2.20% 8/2/2023 50,000 50,000 $175 million term loan LIBOR + 1.65% - 2.50% 8/2/2025 175,000 100,000 $85 million term loan LIBOR + 1.80% - 2.60% 7/25/2024 85,000 85,000 Term loans at stated value 735,000 660,000 Unamortized debt issuance costs (6,298 ) (6,618 ) Term loans, net 728,702 653,382 Revolving credit facility and term loans, net (1) $ 919,102 $ 922,182 Weighted-average interest rate (2) 3.45 % 3.37 % (1) Excludes unamortized debt issuance costs related to the revolving credit facility totaling approximately $3.3 million and $3.6 million as of March 31, 2019 and December 31, 2018, respectively, which are included in other assets, net in the Company's consolidated balance sheets. (2) Interest rate represents the weighted-average effective annual interest rate at the balance sheet date which includes the effect of interest rate swaps in effect on $607.5 million and $557.5 million of the outstanding variable-rate debt as of March 31, 2019 and December 31, 2018, respectively. See Note 5 for more information on the interest rate swap agreements. The one-month LIBOR at March 31, 2019 and December 31, 2018 was 2.49% and 2.50%, respectively. The credit agreements governing the credit facilities 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 and restrictions on certain investments. The Company was in compliance with the applicable covenants at March 31, 2019. Mortgage Debt As of March 31, 2019, the Company had approximately $485.4 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 March 31, 2019 and December 31, 2018 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 March 31, 2019 Outstanding balance as of December 31, 2018 San Juan Capistrano, CA Residence Inn 4.15 % 9/1/2016 6/1/2020 $ 16,210 $ 15,341 $ 15,431 Colorado Springs, CO Hampton 6.25 % 9/1/2016 7/6/2021 7,923 7,580 7,617 Franklin, TN Courtyard 6.25 % 9/1/2016 8/6/2021 14,679 14,047 14,115 Franklin, TN Residence Inn 6.25 % 9/1/2016 8/6/2021 14,679 14,047 14,115 Grapevine, TX Hilton Garden Inn 4.89 % 8/29/2012 9/1/2022 11,810 10,020 10,101 Collegeville/Philadelphia, PA Courtyard 4.89 % 8/30/2012 9/1/2022 12,650 10,732 10,820 Hattiesburg, MS Courtyard 5.00 % 3/1/2014 9/1/2022 5,732 5,018 5,058 Rancho Bernardo/San Diego, CA Courtyard 5.00 % 3/1/2014 9/1/2022 15,060 13,183 13,289 Kirkland, WA Courtyard 5.00 % 3/1/2014 9/1/2022 12,145 10,631 10,717 Seattle, WA Residence Inn 4.96 % 3/1/2014 9/1/2022 28,269 24,728 24,928 Anchorage, AK Embassy Suites 4.97 % 9/13/2012 10/1/2022 23,230 19,798 19,957 Somerset, NJ Courtyard 4.73 % 3/1/2014 10/6/2022 8,750 7,629 7,692 Tukwila, WA Homewood Suites 4.73 % 3/1/2014 10/6/2022 9,431 8,223 8,291 Prattville, AL Courtyard 4.12 % 3/1/2014 2/6/2023 6,596 5,705 5,754 Huntsville, AL Homewood Suites 4.12 % 3/1/2014 2/6/2023 8,306 7,184 7,246 San Diego, CA Residence Inn 3.97 % 3/1/2014 3/6/2023 18,600 16,058 16,198 Miami, FL Homewood Suites 4.02 % 3/1/2014 4/1/2023 16,677 14,423 14,547 Syracuse, NY Courtyard 4.75 % 10/16/2015 8/1/2024 (2) 11,199 10,283 10,357 Syracuse, NY Residence Inn 4.75 % 10/16/2015 8/1/2024 (2) 11,199 10,283 10,357 New Orleans, LA Homewood Suites 4.36 % 7/17/2014 8/11/2024 27,000 24,052 24,232 Westford, MA Residence Inn 4.28 % 3/18/2015 4/11/2025 10,000 9,071 9,137 Denver, CO Hilton Garden Inn 4.46 % 9/1/2016 6/11/2025 34,118 31,975 32,198 Oceanside, CA Courtyard 4.28 % 9/1/2016 10/1/2025 13,655 13,012 13,077 Omaha, NE Hilton Garden Inn 4.28 % 9/1/2016 10/1/2025 22,682 21,613 21,722 Boise, ID Hampton 4.37 % 5/26/2016 6/11/2026 24,000 22,906 23,015 Burbank, CA Courtyard 3.55 % 11/3/2016 12/1/2026 25,564 24,075 24,247 San Diego, CA Courtyard 3.55 % 11/3/2016 12/1/2026 25,473 23,990 24,161 San Diego, CA Hampton 3.55 % 11/3/2016 12/1/2026 18,963 17,859 17,986 Burbank, CA SpringHill Suites 3.94 % 3/9/2018 4/1/2028 28,470 27,846 28,018 Santa Ana, CA Courtyard 3.94 % 3/9/2018 4/1/2028 15,530 15,189 15,283 San Jose, CA Homewood Suites 4.22 % 12/22/2017 1/1/2038 30,000 28,857 29,107 $ 528,600 485,358 488,773 Unamortized fair value adjustment of assumed debt 3,203 3,428 Unamortized debt issuance costs (2,047 ) (2,141 ) Total $ 486,514 $ 490,060 (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. |