Ashford Hospitality Trust puts 12 hotels up for sale

Ashford Hospitality Trust has put 12 of its hotels up for sale as it looks to pay off debt due in January 2026.

Ashford’s plan includes raising sufficient capital through a combination of asset sales, mortgage debt refinancings and non-traded preferred capital raising. Through the asset sales, Ashford intends to generate incremental proceeds, which will be used to pay down the strategic financing, to deleverage the balance sheet and for general corporate purposes.

The hotel assets at various stages of being available for sale are:

  • 390-room Hilton Boston Back Bay – Boston
  • 444-room Ritz-Carlton Atlanta – Atlanta
  • 296-room Westin Princeton – Princeton, N.J.
  • 351-room Hyatt Savannah – Savannah, Ga.
  • 193-room One Ocean – Atlantic Beach, Fla.
  • 350-room Residence Inn Sea World Orlando – Orlando
  • 144-room Residence Inn Salt Lake City – Salt Lake City
  • 168-room Courtyard Overland Park – Overland Park, Kan.
  • 90-room Courtyard Manchester – Manchester, Conn.
  • 86-room Hampton Inn Lawrenceville – Lawrenceville, Ga.
  • 90-room SpringHill Suites Kennesaw – Kennesaw, Ga.
  • 87-room Fairfield Inn Kennesaw – Kennesaw, Ga.

Ashford acknowledged it is unlikely to sell all of these assets, but plans to determine which assets are capturing the most attractive valuations and providing sufficient proceeds levels above allocated debt balances and mortgage release prices.

"As we enter 2024, we are focused on paying off our strategic corporate financing," Ashford President and CEO Rob Hays said in a statement. "Between the excess proceeds from planned asset sales, excess proceeds from planned property refinancings and proceeds from our non-traded preferred capital raise, we believe we have a viable path to pay off our strategic financing this year. Our hotel portfolio also continues to benefit from its geographic diversification, and I believe we are well-positioned to continue to outperform."

The company is also working with lenders to refinance its loan secured by the Renaissance Nashville in Nashville, its Morgan Stanley Pool Loan with 17 hotels located in several states, its loan secured by the Marriott Gateway in Arlington, Va., and its loan secured by the Indigo Atlanta in Atlanta. The company believes there could be substantial excess proceeds from the refinancing of the Renaissance Nashville loan, which can be used to pay down the company's strategic financing.