Global scale, leading position in the U.S. midscale hotel market, and increasing presence in China. Fee-based, asset-light, franchised, and managed business model limits operating leverage and capital intensity. Expanding portfolio of well-recognized lodging brands. Cyclical industry heavily correlated with overall GDP trends and inbound travel. Exposure to event risks that could discourage travel. Strong and relatively stable operating cash flow generation supported by a fee-based business model and good diversification. Asset disposal program substantially complete, potentially resulting in less volatile credit metrics. Free operating cash flows (FOCF) surpassed by shareholder returns leading to negative adjusted discretionary cash flows (DCF). Tighter liquidity management recently with revolving credit facility (RCF) drawings to support funding for shareholder returns. The stable outlook on U.K.-based
