S&P Global Ratings revised its outlook on Extended Stay America Inc. to positive from stable.
The rating agency also affirmed all its ratings on the hotelier, including the BB- corporate credit rating.
The positive outlook echoes S&P Global Ratings' expectation that sustained modest comparable hotel EBITDA growth and proceeds from additional asset sales could result in leverage at 3.5x and funds from operations to debt in the low-20% area by 2019.
Extended Stay America Inc. and its unit ESH Hospitality recently closed on the sale of 25 Extended Stay America hotels to an affiliate of Three Wall Capital LLC. S&P Global Ratings noted that the hotels are the first of 150 assets the company plans to sell as part of its strategy to start franchising.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.
