ASHFORD HOSPITALITY TRUST ANNOUNCES EXTENSION OF MORTGAGE LOAN SECURED BY 17 HOTELS

Rhea-AI Summary

Ashford Hospitality Trust (NYSE: AHT) has successfully extended its Morgan Stanley Pool mortgage loan secured by 17 hotels. The loan extension includes:

• Extension from original November 2024 maturity to March 2026
• Two additional one-year extension options, potentially extending to March 2028
• Current loan balance of $409.8 million
• Continued floating interest rate of SOFR + 3.39%
• Enhanced flexibility for asset release upon sale

Following this extension and February's refinancing of 16 hotels, approximately 60% of AHT's outstanding debt now has final maturities in 2027 and beyond. The company continues to focus on investing predominantly in upper-upscale, full-service hotels.

Positive

• Extended maturity of $409.8M mortgage loan from 2024 to potentially 2028
• 60% of outstanding debt now matures in 2027 or later, improving debt structure
• Enhanced flexibility for asset sales through new release provisions

Negative

• Continued exposure to floating interest rates in rising rate environment

Insights

Financial Analyst

Ashford Hospitality Trust's successful extension of its $409.8 million Morgan Stanley Pool mortgage loan represents a significant positive development for the company's debt management strategy. With the original maturity looming in November 2024, this extension secures financing through March 2026 with two additional one-year extension options potentially pushing final maturity to March 2028.

The maintained interest rate of SOFR + 3.39% suggests lender confidence in the company's assets and operational performance. More importantly, this restructuring - combined with February's refinancing of 16 hotels - results in approximately 60% of AHT's debt now having maturities in 2027 or beyond, significantly reducing near-term refinancing pressure.

For a REIT with a market capitalization of only about $34 million, successfully extending a $409.8 million loan represents crucial financial engineering. The enhanced flexibility to release assets upon sale is particularly valuable, giving management more options to optimize their portfolio and potentially reduce leverage through strategic dispositions.

This extension effectively removes immediate refinancing risk for a substantial portion of AHT's debt load, providing breathing room to focus on operational improvements rather than urgent capital structure demands. For a hotel REIT, where property-level performance can fluctuate seasonally, this financial stability is particularly valuable for preserving long-term equity value.

DALLAS, April 14, 2025 /PRNewswire/ -- Ashford Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the "Company") announced today that it has successfully extended its Morgan Stanley Pool mortgage loan secured by 17 hotels. The loan had an original final maturity date in November of 2024. The extension provides for an initial maturity in March of 2026 and two, one-year extension options, subject to the satisfaction of certain conditions, with a final maturity date in March of 2028.  The loan has a current balance of $409.8 million and continues to bear interest at a floating rate of SOFR + 3.39%. The extension also provides added flexibility for the Company to release assets upon sale.

"We are pleased to announce the multi-year extension of this loan," commented Stephen Zsigray, Ashford Trust's President and Chief Executive Officer. "Together with the refinancing of 16 hotels completed in February, this extension means that now approximately 60% of our outstanding debt has final maturities in 2027 and beyond. As we refinance and extend our mortgage loans, we continue to enhance our flexibility to strategically position the portfolio moving forward."

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 plan to pay off strategic financing; 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 are the new maturity terms for AHT's Morgan Stanley Pool mortgage loan?

The loan extends to March 2026 with two one-year extension options, potentially reaching March 2028, subject to certain conditions.

What is the current balance and interest rate of AHT's extended mortgage loan?

The loan has a $409.8 million balance with a floating interest rate of SOFR + 3.39%.

How much of Ashford Hospitality Trust's debt matures in 2027 or later?

Approximately 60% of AHT's outstanding debt has final maturities in 2027 and beyond.

What changes were made to AHT's asset release terms in the loan extension?

The extension provides added flexibility for the company to release assets upon sale.