v3.26.1
Debt (Tables)
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Schedule of Long Term Debt
The following table sets forth information regarding the Company’s debt (dollars in thousands):
Principal Balance as of
LoanInterest RateMaturity DateJune 30, 2026December 31, 2025
Term 1 Loan
 SOFR + 1.35% (1)
January 2028 (2)
$500,000 $500,000 
Term 3 Loan
SOFR + 1.35% (1)
January 2029 (2)
300,000 300,000 
Term 2 Loan
SOFR + 1.35% (1)
January 2030300,000 300,000 
Senior unsecured credit facility
SOFR + 1.40%
January 2030 (2)
— — 
Total debt1,100,000 1,100,000 
Unamortized debt issuance costs (3)
(962)(1,150)
Debt, net of unamortized debt issuance costs$1,099,038 $1,098,850 
Weighted-Average Interest Rate (4)
4.90% 
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(1)As of June 30, 2026, the interest rate on the portion of variable-rate debt subject to interest rate swaps was 4.83%, and the interest rate on the remaining variable-rate debt was 4.97%.
(2)Maturity date may be extended for two additional six-month periods upon the payment of applicable fees and the satisfaction of certain customary conditions.
(3)Excludes debt issuance costs related to our senior unsecured credit facility, which are included within Prepaid and Other Assets on the accompanying consolidated balance sheets.
(4)Includes the effect of interest rate swaps. See Note 6 for additional disclosures on interest rate swaps.
Schedule of Line of Credit Facility Leverage and Applicable Margin The applicable margin is based upon our leverage ratio, as follows:
Leverage RatioApplicable Margin for Revolving LoansApplicable Margin for Term Loans
Less than 30%
1.40%
1.35%
Greater than or equal to 30% but less than 35%
1.45%
1.40%
Greater than or equal to 35% but less than 40%
1.50%
1.45%
Greater than or equal to 40% but less than 45%
1.60%
1.55%
Greater than or equal to 45% but less than 50%
1.80%
1.75%
Greater than or equal to 50% but less than 55%
1.95%
1.85%
Greater than or equal to 55%
2.25%
2.20%
Schedule of the Most Significant Covenants The Credit Facility contains various financial covenants. A summary of the most significant covenants is as follows:
Actual at
Covenant June 30, 2026
Maximum leverage ratio (1)
60%
23.9%
Minimum fixed charge coverage ratio (2)
1.50x
4.18x
Secured recourse indebtedness
Less than 45% of Total Asset Value
None
Maximum unencumbered leverage ratio
60%
29.8%
Minimum unencumbered implied debt service coverage ratio
1.20x
2.52x
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(1)Leverage ratio is net indebtedness, as defined in the Credit Facility, divided by total asset value, defined in the Credit Facility 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 Facility as EBITDA less FF&E reserves, for the most recent trailing 12 month period, to fixed charges, which is defined in the Credit Facility as interest expense, all regularly scheduled principal payments and payments on capitalized lease obligations, for the same 12 month period.
Schedule of Components of Interest Expense
The components of the Company's interest expense consist of the following (in thousands):

Three Months Ended June 30,Six Months Ended June 30,
 2026202520262025
Unsecured term loan interest$13,606 $10,868 $27,149 $21,630 
Mortgage debt interest— 2,699 — 5,791 
Credit facility fees253 312 503 620 
Amortization of debt issuance costs426 521 851 1,056 
Finance lease expense (1)
157 468 $629 $929 
$14,442 $14,868 $29,132 $30,026 
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(1)Represents the interest expense associated with the ground lease on the Courtyard New York Manhattan/Fifth Avenue, which was sold on May 1, 2026.