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ASHFORD HOSPITALITY TRUST ANNOUNCES MODIFICATION FOR MORTGAGE LOAN

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Ashford Hospitality Trust (NYSE: AHT) has secured a 90-day forbearance period for its Morgan Stanley Pool loan, which covers 17 hotels and matured on November 9, 2024. The company is actively negotiating a multi-year extension of this loan and expects to finalize it during the forbearance period. Additionally, AHT has reduced its strategic financing balance to approximately $48.6 million and triggered an exit fee reduction. Management acknowledges the challenging environment while working on financing solutions to maximize shareholder value.

Ashford Hospitality Trust (NYSE: AHT) ha ottenuto un periodo di tolleranza di 90 giorni per il suo prestito Morgan Stanley Pool, che copre 17 hotel e scade il 9 novembre 2024. L'azienda sta attivamente negoziando un'estensione pluriennale di questo prestito e si aspetta di finalizzarlo durante il periodo di tolleranza. Inoltre, AHT ha ridotto il suo saldo di finanziamento strategico a circa 48,6 milioni di dollari e ha attivato una riduzione della commissione di uscita. La gestione riconosce l'ambiente impegnativo mentre lavora su soluzioni di finanziamento per massimizzare il valore per gli azionisti.

Ashford Hospitality Trust (NYSE: AHT) ha conseguido un período de tolerancia de 90 días para su préstamo Morgan Stanley Pool, que abarca 17 hoteles y venció el 9 de noviembre de 2024. La empresa está negociando activamente una extensión a varios años de este préstamo y espera finalizarlo durante el período de tolerancia. Además, AHT ha reducido su saldo de financiación estratégica a aproximadamente 48,6 millones de dólares y ha activado una reducción de la tarifa de salida. La dirección reconoce el entorno desafiante mientras trabaja en soluciones de financiación para maximizar el valor para los accionistas.

Ashford Hospitality Trust (NYSE: AHT)는 17개의 호텔을 포함하는 Morgan Stanley Pool 대출에 대해 90일 유예 기간을 확보했습니다. 이 대출은 2024년 11월 9일 만료됩니다. 회사는 이 대출의 다년 연장을 적극적으로 협상하고 있으며 유예 기간 동안 이를 마무리짓기를 기대하고 있습니다. 또한, AHT는 전략적 자금 조달 잔액을 약 4,860만 달러로 줄였으며, 종료 수수료 감면을 촉발했습니다. 경영진은 주주 가치를 극대화하기 위한 자금 조달 솔루션을 찾으면서 어려운 환경을 이해하고 있습니다.

Ashford Hospitality Trust (NYSE: AHT) a obtenu une période de grâce de 90 jours pour son prêt Morgan Stanley Pool, qui couvre 17 hôtels et arrive à échéance le 9 novembre 2024. La société est en train de négocier activement une extension pluriannuelle de ce prêt et s'attend à finaliser cette opération pendant la période de grâce. De plus, AHT a réduit son solde de financement stratégique à environ 48,6 millions de dollars et a déclenché une réduction des frais de sortie. La direction reconnaît l'environnement difficile tout en travaillant sur des solutions de financement pour maximiser la valeur pour les actionnaires.

Ashford Hospitality Trust (NYSE: AHT) hat eine 90-tägige Stundungsfrist für sein Morgan Stanley Pool-Darlehen gesichert, das 17 Hotels abdeckt und am 9. November 2024 fällig wird. Das Unternehmen verhandelt aktiv über eine mehrjährige Verlängerung dieses Darlehens und erwartet, es während der Stundungsfrist abzuschließen. Darüber hinaus hat AHT seinen strategischen Finanzierungsstand auf etwa 48,6 Millionen Dollar reduziert und eine Reduzierung der Ausstiegsgebühr ausgelöst. Das Management erkennt die herausfordernde Situation an, während es an Finanzlösungen arbeitet, um den Aktionärswert zu maximieren.

Positive
  • Secured 90-day forbearance period for Morgan Stanley Pool loan
  • Reduced strategic financing balance to $48.6 million
  • Achieved exit fee reduction
Negative
  • Loan maturity default requiring forbearance
  • Challenging financing environment
  • Multiple loans requiring extensions or refinancing

Insights

The 90-day forbearance agreement for the Morgan Stanley Pool loan secured by 17 hotels is a critical development that provides temporary relief but signals underlying financial stress. The company's ability to negotiate this forbearance while pursuing a multi-year extension demonstrates active liability management, though it highlights refinancing challenges in the current high-rate environment.

The reduction of the strategic financing balance to $48.6 million and triggered exit fee reduction are positive steps toward debt management. However, with multiple loans requiring extensions or refinancing, the company faces significant near-term debt maturities that need resolution. The challenging environment mentioned likely refers to higher interest rates and tighter lending conditions, which could impact refinancing terms and overall debt service costs.

DALLAS, Nov. 12, 2024 /PRNewswire/ -- Ashford Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the "Company") announced today that it has successfully entered into a 90-day forbearance period for its Morgan Stanley Pool loan secured by 17 hotels. The loan had a final maturity date of November 9, 2024. The Company is in active discussions with the lender regarding a multi-year extension of the loan and expects to have that finalized during the 90-day period.

"We are currently in active discussions with lenders regarding extensions and refinancings on several of our loans," commented Stephen Zsigray, Ashford Trust's President and Chief Executive Officer. "We have now also reduced the balance of our strategic financing to approximately $48.6 million and triggered the exit fee reduction as announced last week. While it continues to be a challenging environment, we are working diligently to achieve attractive outcomes with our financings and maximize the value of our assets for our shareholders. We look forward to providing additional updates as we make more progress on these efforts."

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; the impact of technology on our operations and business; the risk that the notice and noncompliance with NYSE continued listing standards may impact the Company's results of operations, business operations and reputation and the trading prices and volatility of the Company's common stock; and the Company's ability to regain compliance with the NYSE continued listing standards. 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.

Cision View original content:https://www.prnewswire.com/news-releases/ashford-hospitality-trust-announces-modification-for-mortgage-loan-302302555.html

SOURCE Ashford Hospitality Trust, Inc.

FAQ

What is the status of Ashford Hospitality Trust's Morgan Stanley Pool loan?

AHT has entered a 90-day forbearance period for the Morgan Stanley Pool loan secured by 17 hotels, which matured on November 9, 2024, while negotiating a multi-year extension.

How much has AHT reduced its strategic financing balance to?

Ashford Hospitality Trust has reduced its strategic financing balance to approximately $48.6 million.

How many hotels secure AHT's Morgan Stanley Pool loan?

The Morgan Stanley Pool loan is secured by 17 hotels.

Ashford Hospitality Trust, Inc.

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