Moody's revises ESH Hospitality view to negative

Moody's Investors Service said it revised the outlook of ESH Hospitality, Inc. to negative from stable. Moody's also affirmed the REIT's ratings, including its Ba3 senior unsecured debt and corporate family and its Ba2 senior secured bank credit facility. Concurrently, Moody's downgraded ESH's speculative grade liquidity rating to SGL-3 from SGL-2.

The negative outlook reflects Moody's expectation travel restrictions being put in place across the United States related to the spread of the coronavirus will put significant pressure on ESH's earnings in 2020, the agency said.

“Additional travel restrictions likely to be put in place over the coming weeks will put further pressure on the REIT's earnings, however its net debt/EBITDA will remain within the downgrade trigger of 4.5x on a sustained basis and the REIT has adequate liquidity to get it through this period of unprecedented declines in occupancy,” Moody’s said in a press release.

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