Ashford Hospitality Trust refinances MIP Portfolio mortgage loan

Ashford Hospitality Trust refinanced its $165 million MIP Portfolio mortgage loan, which had a final maturity date in March 2015. 

The loan on the portfolio has been refinanced with a new $200 million non-recourse mortgage loan with a two-year initial term and three one-year extension options, subject to the satisfaction of certain conditions.  The new loan is interest only and provides for a floating interest rate of LIBOR 4.75 percent with a 0.20 percent LIBOR Floor. The refinance resulted in excess net proceeds of approximately $30 million, which will be added to the Company's unrestricted cash balance. As a result, this refinancing is neutral to the Company on a net debt basis.  The new loan remains secured by the same five hotels including: the Embassy Suites Philadelphia Airport, Embassy Suites Walnut Creek, Sheraton Mission Valley San Diego, Sheraton Anchorage and the Hilton Minneapolis/St Paul Airport Mall of America.

"We are very pleased to start 2014 on such a solid footing, by proactively refinancing the MIP Portfolio loan while also realizing substantial excess proceeds to improve our liquidity position," said Monty J. Bennett, Ashford Trust's chairman and CEO. "This is yet another example of our team's proven ability to utilize favorable debt market conditions to manage our debt maturity schedule."

FREE DAILY NEWSLETTER

Like this story? Subscribe to IHIF!

The hospitality industry turns to IHIF International Hotel Investment News as the must-read source for investment and development coverage worldwide. Sign up today to get inside the deal with the latest transactions, openings, financing, and more delivered to your inbox and read on the go.

Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing opportunistically in the hospitality industry across all segments and at all levels of the capital structure primarily within the United States.

Suggested Articles

Thomas C. Morey will retain his role as general counsel on an interim basis until his successor is appointed.

This week has been about the economy and budget sector, the planet and whether the Reuben Brothers go clubbing a lot.

The budget hotel sector has seen its focus expand to look not only at price, but at design and concept, as guests have become more demanding.