Ashford updates asset sales, deleveraging plan

Ashford Hospitality Trust has closed on the sale of the 85-room Hampton Inn in Lawrenceville, Ga. for $8.1 million ($95,300 per key). Other terms of the transaction were not disclosed. The sale price represented a 6 percent capitalization rate on trailing 12-month net operating income through March. All of the net proceeds from the sale will be used for general corporate purposes including paying down the Company's strategic financing.

The company also announced the transfer of the company's possession and control of the hotel properties securing the $180.7 million KEYS A Loan Pool and the $174.4 million KEYS B Loan Pool to a court-appointed receiver. The company has been fully cooperating with the servicer for a consensual foreclosure or deed in lieu of foreclosure on these properties since July. As a result of the transfer, the company has no further economic interest in the operations of these hotels. 

KEYS A Loan Pool Hotels:

  • Courtyard Columbus Tipton Lakes – Columbus, Ind.
  • Courtyard Old Town – Scottsdale, Ariz.
  • Residence Inn Hughes Center – Las Vegas
  • Residence Inn Phoenix Airport – Phoenix
  • Residence Inn San Jose Newark – Newark, Calif.
  • SpringHill Suites Manhattan Beach – Hawthorne, Calif.
  • SpringHill Suites Plymouth Meeting – Plymouth Meeting, Pa.

KEYS B Loan Pool Hotels:

  • Courtyard Basking Ridge – Basking Ridge, N.J.
  • Courtyard Newark Silicon Valley – Newark, Calif.
  • Courtyard Oakland Airport – Oakland, Calif.
  • Courtyard Plano Legacy Park – Plano, Texas
  • Residence Inn Plano – Plano, Texas
  • SpringHill Suites BWI Airport – Baltimore
  • TownePlace Suites Manhattan Beach – Hawthorne, Calif.

"We are pleased with the progress we have made on our deleveraging plan, including the transfer of the KEYS A&B loan pool assets to the receiver," President and CEO Rob Hays said in a statement. "We continue to have several assets in the market at various stages of the sales process and look forward to providing more updates in the coming weeks."