ASHFORD HOSPITALITY TRUST ANNOUNCES SALE OF THE COURTYARD BOSTON DOWNTOWN
Ashford Hospitality Trust (NYSE: AHT) has completed the sale of the Courtyard Boston Downtown for $123.0 million, equivalent to $390,500 per key for the 315-room property. The transaction contributes to deleveraging the company's BAML Highland Pool loan and reduces future capital expenditure requirements.
CEO Stephen Zsigray noted improved sentiment in transaction and financing markets, highlighting strong revenue growth in December as part of their GRO AHT initiative progress.
Ashford Hospitality Trust (NYSE: AHT) ha completato la vendita del Courtyard Boston Downtown per 123,0 milioni di dollari, equivalente a 390.500 dollari per chiave per la proprietà di 315 camere. La transazione contribuisce alla deleveraging del prestito BAML Highland Pool dell'azienda e riduce i requisiti di spesa in capitale futuri.
Il CEO Stephen Zsigray ha notato un miglioramento del sentimento nei mercati delle transazioni e del finanziamento, evidenziando una forte crescita dei ricavi a dicembre come parte dei progressi della loro iniziativa GRO AHT.
Ashford Hospitality Trust (NYSE: AHT) ha completado la venta del Courtyard Boston Downtown por 123,0 millones de dólares, equivalente a 390,500 dólares por habitación en la propiedad de 315 habitaciones. La transacción contribuye a reducir el endeudamiento del préstamo BAML Highland Pool de la compañía y disminuye los futuros requisitos de gasto de capital.
El CEO Stephen Zsigray destacó una mejora en el sentimiento en los mercados de transacciones y financiamiento, subrayando el fuerte crecimiento de ingresos en diciembre como parte del progreso de su iniciativa GRO AHT.
Ashford Hospitality Trust (NYSE: AHT)는 Courtyard Boston Downtown의 판매를 완료했으며, 판매 가격은 1억 2300만 달러로, 315개 객실을 기준으로 방당 39만 500달러에 해당합니다. 이번 거래는 회사의 BAML Highland Pool 대출 상환에 기여하며 향후 자본 지출 요구 사항을 줄여줍니다.
CEO Stephen Zsigray는 거래 및 금융 시장의 정서 개선을 언급하며, GRO AHT 이니셔티브의 일환으로 12월의 강력한 수익 성장에 주목했습니다.
Ashford Hospitality Trust (NYSE: AHT) a finalisé la vente du Courtyard Boston Downtown pour 123,0 millions de dollars, soit 390 500 dollars par clé pour la propriété de 315 chambres. La transaction contribue à désendetter le prêt BAML Highland Pool de l'entreprise et réduit les futurs besoins en dépenses d'investissement.
Le PDG Stephen Zsigray a noté une amélioration du sentiment sur les marchés de la transaction et du financement, soulignant une forte croissance des revenus en décembre dans le cadre des progrès de leur initiative GRO AHT.
Ashford Hospitality Trust (NYSE: AHT) hat den Verkauf des Courtyard Boston Downtown für 123,0 Millionen US-Dollar abgeschlossen, was 390.500 US-Dollar pro Zimmer für die 315-Zimmer-Immobilie entspricht. Die Transaktion trägt zur Reduzierung der Verschuldung des BAML Highland Pool-Darlehens des Unternehmens bei und verringert zukünftige Anforderungen an Investitionsausgaben.
CEO Stephen Zsigray bemerkte eine verbesserte Stimmung auf den Transaktions- und Finanzmärkten und hob das starke Umsatzwachstum im Dezember im Rahmen des Fortschritts ihrer GRO AHT-Initiative hervor.
- Sale of Courtyard Boston Downtown for $123.0 million ($390,500 per key)
- Reduction in debt through BAML Highland Pool loan deleveraging
- Decreased future capital expenditure requirements
- Strong revenue growth reported for December
- Disposal of revenue-generating asset from portfolio
Insights
The
The sale's timing aligns well with AHT's GRO (Growth, Revenue, Optimization) initiative. By divesting this property, AHT reduces its capital expenditure obligations while potentially freeing up resources for strategic investments in higher-growth opportunities. The strong December revenue growth mentioned indicates early success in operational improvements, though specific metrics would be needed to quantify this progress.
For a company with a market cap of
The Boston hotel market has shown remarkable resilience and this transaction validates the strength of prime urban locations. The
The timing of this disposition is strategic, capitalizing on improved transaction market sentiment. The property's downtown location in a major business hub like Boston likely contributed to strong buyer interest, despite broader market uncertainties. This sale could signal a thawing in the hotel transaction market, which has been relatively quiet due to interest rate concerns.
Looking ahead, the reduction in capital expenditure requirements is particularly valuable given the age and positioning of many downtown hotels, which often require significant ongoing investment to maintain competitiveness. This move allows AHT to redirect resources to potentially more profitable opportunities within its portfolio.
"We are pleased to announce the closing of the sale of the Courtyard Boston Downtown," commented Stephen Zsigray, Ashford Trust's President and Chief Executive Officer. "This sale not only deleverages our BAML Highland Pool loan, but also results in significant capital expenditure savings going forward. We are encouraged by the improved sentiment we are seeing in both the transaction and financing markets and the progress we are making with our recently announced GRO AHT initiative as evidenced by the strong revenue growth we achieved in December."
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.
View original content:https://www.prnewswire.com/news-releases/ashford-hospitality-trust-announces-sale-of-the-courtyard-boston-downtown-302350452.html
SOURCE Ashford Hospitality Trust, Inc.
FAQ
How much did AHT sell the Courtyard Boston Downtown for?
What is the impact of the Courtyard Boston Downtown sale on AHT's debt?
How many rooms did the sold Courtyard Boston Downtown property have?
What recent performance improvements has AHT reported?
What is the price per key for AHT's Courtyard Boston Downtown sale?
