A 4.5% annualized yield, covered at 39% of guided FFO, carried on leverage in the caution band with nearly half the debt floating-rate. The $0.08 quarterly dividend annualizes to about 4.5% and is covered at about 39% of guided Adjusted FFO, with pro forma RevPAR up 5.0% to $136.06 in Q2 2026 even as occupancy slipped 1.9 points to 76.3%. Leverage of about 6.0 times, on labelled arithmetic, sits in the 6–7× caution band, and 49% of debt is variable-rate, although no maturities fall until 2028 after a June $650 million facility refinancing. The dividend was suspended in 2020, has been rebuilt, and was flat through 2026, so history stays a caution.
Key risk: Nearly half the debt is floating-rate, so higher rates flow straight into interest cost.
Changes if: Leverage rises above 7×, or occupancy falls further while RevPAR growth stalls.
- ✓AFFO payout ~39% of guided Adjusted FFO, under the 80% pass threshold; Q2 28%.
- !Leverage ~6.0× on labelled arithmetic, in the 6–7× caution band; 49% variable-rate; no maturities until 2028.
- !Raise history Suspended 2020, rebuilt, $0.08/qtr flat 2026; declared July 28, 2026 (company-stated 4.6% yield on Aug 4, 2026 close).
- ✓Operating Pro forma RevPAR $136.06, +5.0%; occupancy 76.3%, −1.9pp in Q2 2026.
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.