Meaningful LeverageElevated leverage increases sensitivity to lodging cyclicality and financing market shifts. With debt near equity levels, adverse demand or rising rates could quickly pressure cash flow and limit strategic flexibility to invest or return capital over the medium term.
Inconsistent Profitability / Net LossesAlthough revenues and hotel EBITDA have improved, failure to deliver consistent net profits constrains retained earnings and sustainable common dividends. Persistent net losses weaken return metrics and limit ability to self-fund growth or further deleveraging long term.
Reliance On Asset Sales To Manage CapitalFrequent asset dispositions and preferred retirements indicate reliance on capital recycling to reduce leverage and return capital. If transaction markets soften, this strategy risks limited execution, timing exposure, and shrinking portfolio scale, undermining long-term earnings power.