Covered payout and a growing group-bookings book, held back by post-acquisition leverage that is not yet measurable and a dividend flat at $1.20 through 2026. The $1.20 quarterly dividend is covered at about 53% of guided Adjusted FFO, and Q2 revenue rose 13.6% to $749.0 million with record group bookings. Leverage was 4.2 times at June 30, 2026, before the $1.38 billion Grande Lakes acquisition closed September 1, 2026, so the current leverage figure cannot be verified. The dividend was suspended in 2020, troughed at $0.10 in 2022, and has been rebuilt past its pre-2020 $0.90 rate to $1.20 — flat through 2026, so the flat hold and the unverifiable post-acquisition leverage keep the history a caution.
Key risk: Post-Grande Lakes leverage is unverifiable and the acquisition materially increased debt and share count.
Changes if: Post-close leverage is published above 6×, or the dividend is cut or held flat while guided FFO falls.
- ✓AFFO payout ~53% of guided Adjusted FFO, under the 80% pass threshold; Q2 43%.
- !Leverage 4.2× at June 30, 2026, but pre-Grande Lakes ($1.38B close Sept 1, 2026, funded with $700M 5.750% senior notes due 2034 plus ~5.9M new shares); post-close leverage unverifiable.
- !Raise history Suspended 2020; trough $0.10 in 2022; rebuilt to $1.20/qtr, above the $0.90 pre-2020 rate; flat through 2026.
- ✓Operating Q2 revenue $749.0M, +13.6% YoY; 768,000+ group room nights booked, ADR record ~$310.
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.