ASHFORD HOSPITALITY TRUST ANNOUNCES CLOSING OF $580 MILLION MORTGAGE LOAN SECURED BY 16 HOTELS
Ashford Hospitality Trust (NYSE: AHT) has successfully closed a $580 million refinancing secured by 16 hotels. The new non-recourse financing replaces previous loans with a combined balance of $438.7 million and features a two-year term with three one-year extension options at SOFR + 4.37% interest rate.
The company utilized approximately $72 million of the excess proceeds to fully pay off its strategic financing, including the exit fee. The remaining excess proceeds will fund transaction costs and reserves for future capital expenditures. This refinancing addresses several pending loan maturities and eliminates all corporate-level debt.
Ashford Hospitality Trust (NYSE: AHT) ha concluso con successo un rifinanziamento di 580 milioni di dollari garantito da 16 hotel. Il nuovo finanziamento non ricorsivo sostituisce i precedenti prestiti con un saldo combinato di 438,7 milioni di dollari e presenta un termine di due anni con tre opzioni di estensione annuale a un tasso di interesse di SOFR + 4,37%.
L'azienda ha utilizzato circa 72 milioni di dollari dei proventi in eccesso per estinguere completamente il proprio finanziamento strategico, inclusa la commissione di uscita. I restanti proventi in eccesso finanzieranno i costi di transazione e le riserve per future spese in conto capitale. Questo rifinanziamento affronta diverse scadenze di prestiti in sospeso ed elimina tutto il debito a livello aziendale.
Ashford Hospitality Trust (NYSE: AHT) ha cerrado con éxito un refinanciamiento de 580 millones de dólares garantizado por 16 hoteles. El nuevo financiamiento no recursivo reemplaza los préstamos anteriores con un saldo combinado de 438,7 millones de dólares y cuenta con un plazo de dos años con tres opciones de extensión anual a una tasa de interés de SOFR + 4,37%.
La empresa utilizó aproximadamente 72 millones de dólares de los ingresos excedentes para pagar completamente su financiamiento estratégico, incluida la tarifa de salida. Los ingresos excedentes restantes financiarán los costos de transacción y reservas para futuros gastos de capital. Este refinanciamiento aborda varios vencimientos de préstamos pendientes y elimina toda la deuda a nivel corporativo.
Ashford Hospitality Trust (NYSE: AHT)는 16개 호텔을 담보로 한
회사는 약 7천2백만 달러의 초과 수익을 사용하여 전략적 금융을 완전히 상환하였고, 종료 수수료도 포함되어 있습니다. 나머지 초과 수익은 거래 비용 및 향후 자본 지출을 위한 준비금으로 사용될 것입니다. 이 재융자는 여러 개의 대출 만기를 해결하고 모든 기업 수준의 부채를 제거합니다.
Ashford Hospitality Trust (NYSE: AHT) a réussi à conclure un refinancement de 580 millions de dollars garanti par 16 hôtels. Le nouveau financement non remboursable remplace les prêts précédents d'un solde combiné de 438,7 millions de dollars et propose une durée de deux ans avec trois options de prolongation d'un an à un taux d'intérêt de SOFR + 4,37%.
L'entreprise a utilisé environ 72 millions de dollars des fonds excédentaires pour rembourser intégralement son financement stratégique, y compris les frais de sortie. Les fonds excédentaires restants financeront les coûts de transaction et les réserves pour de futures dépenses en capital. Ce refinancement répond à plusieurs échéances de prêts en attente et élimine toute dette au niveau de l'entreprise.
Ashford Hospitality Trust (NYSE: AHT) hat erfolgreich eine Refinanzierung in Höhe von 580 Millionen US-Dollar abgeschlossen, die durch 16 Hotels gesichert ist. Die neue nicht rückzahlbare Finanzierung ersetzt frühere Kredite mit einem Gesamtbetrag von 438,7 Millionen US-Dollar und bietet eine Laufzeit von zwei Jahren mit drei einjährigen Verlängerungsoptionen zu einem Zinssatz von SOFR + 4,37%.
Das Unternehmen verwendete etwa 72 Millionen US-Dollar der überschüssigen Mittel, um seine strategische Finanzierung einschließlich der Ausstiegsgebühr vollständig zurückzuzahlen. Die verbleibenden überschüssigen Mittel werden Transaktionskosten und Rücklagen für zukünftige Investitionen decken. Diese Refinanzierung betrifft mehrere ausstehende Kreditfälligkeiten und beseitigt alle Unternehmensschulden.
- Secured $580 million refinancing, generating $141.3 million in excess proceeds above previous loan balance
- Complete elimination of corporate-level debt
- Established significant reserves for future capital expenditures
- Successfully addressed multiple pending loan maturities
- Higher interest rate exposure with floating rate SOFR + 4.37%
- Shorter initial term of two years compared to typical hotel mortgages
Insights
This $580 million refinancing represents a strategic transformation of Ashford Hospitality Trust's debt structure, with several key positive implications for the company's financial health. The consolidation of multiple loans into a single facility simplifies the debt structure while generating $141.3 million in additional proceeds above the previous loan balance of
The complete elimination of corporate-level debt through the
The new loan's floating rate of SOFR + 4.37% reflects current market conditions for hospitality assets, while the two-year term with three one-year extension options provides valuable flexibility to navigate market cycles. The significant reserves set aside for future capital expenditures are strategically important in the upper upscale hotel segment, where maintaining property quality is essential for preserving asset value and competitive positioning.
This refinancing effectively addresses near-term debt maturities while creating a more streamlined and sustainable capital structure. The elimination of corporate-level debt, combined with the establishment of capital expenditure reserves, positions Ashford Trust for improved operational flexibility and potential future growth opportunities in the upper upscale hospitality sector.
"We are extremely pleased to announce the refinancing of these loan pools on attractive terms," commented Stephen Zsigray, Ashford Trust's President and Chief Executive Officer. "The successful refinancing of these 16 hotels not only generated enough excess proceeds to fully pay off our strategic financing, but we were also able to set aside significant reserves for future capital expenditures at these hotels. With the closing of this refinancing along with the full pay off of our strategic financing, we've addressed several pending loan maturities and eliminated all corporate-level debt."
Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing predominantly in upper upscale, full-service hotels.
Forward-Looking Statements
Certain statements and assumptions in this press release contain or are based upon "forward-looking" information and are being made pursuant to the safe harbor provisions of the federal securities regulations. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may," "will," "should," "potential," "intend," "expect," "anticipate," "estimate," "approximately," "believe," "could," "project," "predict," or other similar words or expressions. Additionally, statements regarding the following subjects are forward-looking by their nature: Our business and investment strategy; anticipated or expected purchases, sales or dispositions of assets; our projected operating results; completion of any pending transactions; our ability to restructure existing property-level indebtedness; our ability to secure additional financing to enable us to operate our business; our understanding of our competition; projected capital expenditures; and the impact of technology on our operations and business.. Such forward-looking statements are based on our beliefs, assumptions, and expectations of our future performance taking into account all information currently known to us. These beliefs, assumptions, and expectations can change as a result of many potential events or factors, not all of which are known to us. If a change occurs, our business, financial condition, liquidity, results of operations, plans, and other objectives may vary materially from those expressed in our forward-looking statements. You should carefully consider this risk when you make an investment decision concerning our securities. These and other risk factors are more fully discussed in the Company's filings with the SEC.
The forward-looking statements included in this press release are only made as of the date of this press release. Investors should not place undue reliance on these forward-looking statements. We will not publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances, changes in expectations or otherwise except to the extent required by law.
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SOURCE Ashford Hospitality Trust, Inc.
FAQ
What is the size and terms of AHT's new mortgage loan announced in February 2024?
How did AHT use the excess proceeds from the $580 million refinancing?
How many hotels were included in AHT's February 2024 refinancing?
What was the previous loan balance that AHT refinanced with the new $580 million loan?
