v3.26.3
Debt
 9 Months Ended
Sep. 30, 2026
Debt Disclosure [Abstract]  
Debt Debt
The following table sets forth information regarding the Company’s debt (dollars in thousands):
Principal Balance as of
LoanInterest RateMaturity DateSeptember 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)
(869)(1,150)
Debt, net of unamortized debt issuance costs$1,099,131 $1,098,850 
Weighted-Average Interest Rate (4)
5.07%
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(1)As of September 30, 2026, the interest rate on the portion of variable-rate debt subject to interest rate swaps was 4.91%, and the interest rate on the remaining variable-rate debt was 5.22%.
(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 the revolving 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.

Senior Unsecured Credit Facility and Unsecured Term Loans

We are party to a Seventh Amended and Restated Credit Agreement (the “Credit Facility”) that provides for a $400.0 million revolving credit facility (the “Revolving Credit Facility”) and three term loan facilities in the aggregate amount of $1.1 billion. The Revolving Credit Facility matures on January 22, 2030. The term loan facilities consist of a $500.0 million term loan that matures on January 3, 2028 (the “Term 1 Loan”), a $300.0 million term loan that matures January 22, 2030 (the “Term 2 Loan”) and a $300.0 million term loan that matures on January 22, 2029 (the “Term 3 Loan”). The maturity date of the Revolving Credit Facility, Term 1 Loan and Term 3 Loan may be extended for two additional six-month periods upon the payment of applicable fees and satisfaction of certain standard conditions. We have the right to increase the aggregate capacity of the Credit Facility to $1.8 billion upon the satisfaction of certain standard conditions. As of September 30, 2026, we had $400.0 million of borrowing capacity under the Revolving Credit Facility.
Interest is paid on the periodic advances on the Revolving Credit Facility and amounts outstanding on the term loans at varying rates, based upon the Secured Overnight Financing Rate (“SOFR”), as defined in the Credit Facility, plus an 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%

The Credit Facility contains various financial covenants. A summary of the most significant covenants is as follows:
Actual at
Covenant September 30, 2026
Maximum leverage ratio (1)
60%
22.0%
Minimum fixed charge coverage ratio (2)
1.50x
4.65x
Secured recourse indebtedness
Less than 45% of Total Asset Value
None
Maximum unencumbered leverage ratio
60%
28.8%
Minimum unencumbered implied debt service coverage ratio
1.20x
2.60x
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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.

The components of the Company’s interest expense consist of the following (in thousands):

Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Unsecured term loan interest$13,887 $14,223 $41,036 $35,853 
Mortgage debt interest— 1,414 — 7,205 
Credit facility fees279 504 782 1,124 
Amortization of debt issuance costs426 494 1,277 1,550 
Finance lease expense (1)
56 476 $685 $1,405 
$14,648 $17,111 $43,780 $47,137 
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(1)Represents interest expense related to the Courtyard New York Manhattan/Fifth Avenue ground lease, which was sold on May 1, 2026, and the L’Auberge de Sedona lease. Following a July 2026 extension of the lease term, the L’Auberge de Sedona lease was reclassified from an operating lease to a finance lease.