The only raise in this batch — up 22% to $0.11 — on the lightest leverage, still graded warn only because the dividend has not yet regained its pre-2020 rate. The raised $0.11 quarterly dividend annualizes to about 3.1% and is covered at about 37% of guided Adjusted FFO, with comparable RevPAR up 7.0% to $240.79 in Q2 2026 and occupancy up 1.8 points to 78.1%. Leverage of about 3.2 times, on labelled arithmetic, is the lightest in this batch, with no maturities until 2029 and no secured, convertible, or preferred debt. The path — $0.125 pre-2020, suspended April 2020, $0.03 in 2022–2024, $0.08 in 2025, $0.09, then $0.11 — is a genuine rebuild that has not yet closed the gap.
Key risk: The raise depends on guided FFO holding; a lodging downturn would test the rebuild first.
Changes if: Guided FFO is cut, or the raised dividend is held flat for an extended period while FFO stalls.
- ✓AFFO payout ~37% of guided Adjusted FFO, under the 80% pass threshold.
- ✓Leverage ~3.2× on labelled arithmetic, under the 6× pass threshold; no maturities until 2029; no secured/convertible/preferred debt.
- !Raise history Raised 22% to $0.11, declared July 30, 2026; $0.125 pre-2020 (2020 10-K history table), suspended April 2020, $0.03 → $0.08 → $0.09 → $0.11.
- ✓Operating Comparable RevPAR $240.79, +7.0%; occupancy 78.1%; Q2 Adjusted FFO $0.44 ($0.41 ex-$6.9M Chicago tax settlement).
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.