The highest yield in this batch at 6.0%, covered but carried on the heaviest leverage, with a dividend still flat since its 2020 suspension. The $0.25 quarterly dividend is covered at about 51% of guided Adjusted FFO, and comparable RevPAR rose 5.8% to $216.87 in Q2 2026 with occupancy at 80.0%. Leverage of about 6.0 times, on labelled arithmetic, sits in the 6–7× caution band, with an average maturity of only 1.8 years, although $1.3 billion of Q3 maturities were refinanced and liquidity is $2.6 billion. The dividend was suspended in 2020 and has been flat at $0.25 through 2026, so history stays a caution.
Key risk: Short average debt maturity means refinancing risk persists despite the Q3 refinancing.
Changes if: Leverage rises above 7×, or RevPAR/FFO falls enough to push payout toward 80%.
- ✓AFFO payout ~51% of guided Adjusted FFO, under the 80% pass threshold; Q2 36%.
- !Leverage ~6.0× on labelled arithmetic, in the 6–7× caution band; $2.6B liquidity; $1.3B Q3 maturities refinanced via $700M Bonnet Creek loan + $800M delayed-draw term loan.
- !Raise history Suspended 2020; $0.25/qtr flat through 2026.
- ✓Operating Comparable RevPAR $216.87, +5.8%; occupancy 80.0%, +2.9pp 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.