Ashford Hospitality Trust Completes $580 Million Refinancing Deal
DALLAS, Feb. 12, 2025 – Ashford Hospitality Trust, Inc. (Ashford Trust), a real estate investment trust (REIT) that owns and operates upscale, full-service hotels, announced today the successful completion of a $580 million refinancing deal. The transaction involved the securitization of 17 of the company’s hotels.
Details of the Refinancing
The 17 hotels included in the deal were previously part of Ashford Trust’s KEYS Pool C Loan, KEYS Pool D Loan, KEYS Pool E Loan, and the Bank of America Merrill Lynch (BAML) Pool 3 Loan. Additionally, the Westin Princeton was also included in the refinancing.
Impact on Ashford Trust
This refinancing will provide Ashford Trust with significant financial benefits. The new financing terms include a lower interest rate and an extended loan term, which will help the company reduce its debt servicing costs and improve its cash flow. Furthermore, the transaction will also provide Ashford Trust with increased financial flexibility to pursue growth opportunities and invest in its properties.
Impact on Individual Investors
For individual investors who hold shares in Ashford Trust, this refinancing deal could result in higher dividends. With lower debt servicing costs, Ashford Trust will have more cash available to distribute to shareholders as dividends. Additionally, the company’s improved financial position could lead to increased confidence in its ability to generate strong returns, potentially leading to higher stock prices.
Impact on the Hospitality Industry
The successful completion of Ashford Trust’s refinancing deal is a positive sign for the hospitality industry as a whole. The transaction demonstrates the continued appetite for debt financing in the sector, despite economic uncertainty. Additionally, the lower interest rates and extended loan terms secured by Ashford Trust are likely to encourage other hotel owners to explore refinancing opportunities, potentially leading to increased investment in the sector.
Conclusion
Ashford Hospitality Trust’s $580 million refinancing deal is a significant development for the company and the hospitality industry. With lower debt servicing costs, increased financial flexibility, and the potential for higher dividends, Ashford Trust is well-positioned to continue generating strong returns for its shareholders. Furthermore, the deal is a positive sign for the hospitality industry, demonstrating the continued availability of debt financing and encouraging investment in the sector.
- Ashford Hospitality Trust completes $580 million refinancing deal
- 17 hotels included in the deal
- Lower interest rates and extended loan terms
- Higher dividends for shareholders
- Positive sign for the hospitality industry
