Ashford Hospitality Trust, Inc. (the “company”) announced that it has successfully closed on the sale of four hotels and has entered into definitive agreements to sell an additional two hotels. These six transactions are part of the company’s ongoing strategy to optimize its portfolio through strategic asset sales. The majority of proceeds will be used to pay down mortgage debt, and together, these sales are expected to result in more than $60 million in future capital expenditure savings.
“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 Santa Fe, as well as Hilton Alexandria Old Town and Embassy Suites by Hilton Palm Beach Gardens PGA Boulevard. These transactions generated $252.5 million in gross proceeds, or $280,000 per key.
When adjusted for the company’s anticipated capital expenditures of $57.6 million, the sale price represents a 6.0% capitalization rate on net operating income or a multiple of 14.5 times Hotel EBITDA for the twelve months ended December 31, 2025. Excluding the anticipated capital spend, the combined sale price represents a 7.4% capitalization rate on net operating income or a multiple of 11.8 times Hotel EBITDA for the twelve months ended December 31, 2025.
Pending Transactions: The company has entered into definitive agreements to sell the 168-room Lakeway Resort & Spa for $37.8 million or $225,000 per key and the 150-room Embassy Suites by Hilton Dallas Near the Galleria for $17.0 million or $113,000 per key.
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 $2.5 million, the sale price represents a 4.8% capitalization rate on net operating income or a multiple of 16.2 times Hotel EBITDA for the twelve months ended December 31, 2025. Excluding the anticipated capital spend, the combined sale price represents a 5.0% capitalization rate on net operating income or a multiple of 15.5 times Hotel EBITDA for the twelve months ended December 31, 2025.
