...Operational Performance Improving: NH Hoteles SA's (NHH) results for year to September 2014 showed much faster revenue per available room (RevPar) growth at 3.7%, underpinned by average room rate increases (+1.2%) on the back of increasing hotel refurbishments. Encouragingly in Q314, for the first time since 2008, average room rate increases (+2.8%) were above those from increased occupancy. Attractive Hotel Portfolio: The majority of NHH's properties are in or around major European and Latin American cities. As a result, the portfolio's valuation (EUR1.5bn at end-2013) has proven resilient and become a primary source of liquidity in recent years. The properties further benefit the group by serving as collateral for its secured debt. Weak Credit Metrics: Leverage remains in the lower `B' category with modest deleveraging in 2015, which will continue to constrain the ratings. Fitch-estimated FFO lease-adjusted net leverage of around 8.2x-8.5x at end-2014, compares poorly with rated hotel...
