* Interest-only classes X-CP X-EXT are equal to the notional balance of classes A, B and C.
The certificates represent the beneficial ownership in the trust, the primary asset of which is one loan having an aggregate principal balance of approximately
KEY RATING DRIVERS
Single-Asset Concentration: The transaction is secured by a single hotel property and therefore more susceptible to single event risk related to the market. Hotel performance is considered to be more volatile due to their operating nature.
Moderate Trust Leverage: Fitch Ratings' stressed DSCR and LTV for the trust component of the debt are 1.30x and 81.0%, respectively.
Asset Quality and Market Positioning:
Upward Trending Performance: Revenue per available room (RevPAR) as of the trailing twelve months (TTM) ended
Volatility of Food and Beverage Revenue: Approximately 45.5% of revenue at the property is derived from food and beverage (F&B) revenue, which is considered more volatile than room revenue. Although the overall level of F&B is high, it is spread among multiple venues and sources such as restaurants, banquet functions and lounges. The property's signature restaurants and
Fitch found that the pool could withstand a 84.0% decline in value and an approximately 73.1% decrease in the most recent actual cash flow prior to experiencing
Fitch evaluated the sensitivity of the ratings for class A and a 30.0% decline in Fitch NCF would result in a one category downgrade, while a 51.0% decline would result in a downgrade to below investment grade. The Rating Sensitivity section in the presale report includes a detailed explanation of additional stresses and sensitivities.
Key Rating Drivers and Rating Sensitivities are further described in the accompanying presale report. The presale report is available to all investors on Fitch's web site 'www.fitchratings.com'.
Additional information is available at 'www.fitchratings.com'.
--'Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions' (
--'Global Structured Finance Rating Criteria' (
--'U.S. Commercial Mortgage Servicer Rating Criteria' (
--'Counterparty Criteria for Structured Finance Transactions and Covered Bonds' (
Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions
Global Structured Finance Rating Criteria
U.S. Commercial Mortgage Servicer Rating Criteria
Counterparty Criteria for Structured Finance Transactions - Effective 12
Secondary and Surveillance Analyst
Source: Fitch Ratings
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