ASHFORD HOSPITALITY TRUST CONTINUES STRATEGIC PORTFOLIO OPTIMIZATION THROUGH SALE OF SIX HOTELS
Rhea-AI Summary
Ashford Hospitality Trust (NYSE:AHT) closed four hotel sales and signed definitive agreements to sell two more, part of a portfolio optimization strategy announced April 9, 2026. Closed transactions generated $252.5 million gross proceeds; sales are expected to yield >$60 million in future capex savings and will be used mainly to pay down mortgage debt.
Pending sales total $54.8 million ($37.8M Lakeway Resort & Spa; $17.0M Embassy Suites Dallas) and are expected to close by May 2026, subject to customary conditions. Reported cap rates and Hotel EBITDA multiples are included for 2025.
AI-generated analysis. Not financial advice.
Positive
- $252.5M gross proceeds from closed hotel sales
- Expected >$60M in future capital expenditure savings
- Proceeds earmarked to pay down mortgage debt
- Pending transactions totalling $54.8M expected by May 2026
Negative
- Anticipated combined capital expenditures of $57.6M reduce net proceeds
- Pending sales are subject to customary closing conditions and not guaranteed
- Lower per-key price for Embassy Suites Dallas at $113,000 per key
News Market Reaction – AHT
On the day this news was published, AHT gained 2.94%, reflecting a moderate positive market reaction. Argus tracked a trough of -9.1% from its starting point during tracking. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $503K to the company's valuation, bringing the market cap to $17.62M at that time.
Data tracked by StockTitan Argus on the day of publication.
"We continue to aggressively refine our hotel portfolio through strategic divestitures," said Stephen Zsigray, President and Chief Executive Officer. "We remain focused on maximizing shareholder value, and these sales accomplish all three of our strategic objectives: improved cash flow after debt service, significantly reduced future capital expenditure obligations, and lower portfolio leverage."
Closed Transactions
The Company has successfully closed on the previously announced sales of Hilton St. Petersburg Bayfront and La Posada de
When adjusted for the Company's anticipated capital expenditures of
Pending Transactions
The Company has entered into definitive agreements to sell the 168-room Lakeway Resort & Spa for
These sales are expected to be completed by May 2026 and are subject to normal closing conditions. The Company provides no assurances that these sales will be completed on these terms or at all.
When adjusted for the Company's anticipated combined capital expenditures of
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.
View original content:https://www.prnewswire.com/news-releases/ashford-hospitality-trust-continues-strategic-portfolio-optimization-through-sale-of-six-hotels-302738728.html
SOURCE Ashford Hospitality Trust, Inc.