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AHT News
AHT Events
Ashford Hospitality Closes Sale of Four Hotels, Expected to Save Over $60M
Ashford Hospitality has 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 $60M in future capital expenditure savings. The company has closed on the 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 $252.5M in gross proceeds, or $280K per key. 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. The company has entered into definitive agreements to sell the 168-room Lakeway Resort & Spa for $37.8M or $225K per key, and the 150-room Embassy Suites by Hilton Dallas Near the Galleria for $17.0M or $113K per key. These sales are expected to be completed by May and are subject to normal closing conditions. The sale price represents a 4.8% capitalization rate on net operating income or a multiple of 16.2 times Hotel EBITDA for 2025.
Ashford CFO Deric Eubanks to Retire in 2026
Ashford announced that Deric Eubanks, CFO and Treasurer, will retire in June following a 23-year career with the Company and its predecessor. Mr. Eubanks will step down as CFO of the Company and the Company's advised REITs, Ashford Hospitality Trust (AHT) and Braemar Hotels & Resorts (BHR) effective March 31, 2026 and, in order to ensure a smooth transition, will continue to assist the Company, as Senior Managing Director, with financial and transitional matters until June 30, 2026. Afterward, he will continue to remain available as an advisor as needed. After Mr. Eubanks steps down as CFO, Justin Coe, the Company's current Chief Accounting Officer, will assume the role of Principal Financial Officer of the Company and its advised REITs.
Ashford Hospitality Trust Forms Special Committee to Evaluate Strategic Alternatives
Ashford Hospitality Trust announced that its Board of Directors has formed a Special Committee to evaluate strategic alternatives to maximize shareholder value, including a potential transaction. "We've been highly encouraged by our success to date in executing our plan to drive outsized EBITDA growth, strategically sell assets, and strengthen our balance sheet," said President and Chief Executive Officer Stephen Zsigray. "However, we remain frustrated by the discrepancy between the value of our underlying portfolio and the market value of our common stock, and the Board has tasked the Special Committee with proactively exploring alternatives to bridge that gap." In conjunction with forming the Special Committee, the company has also terminated the current offering of its Series L and M Non-Traded Preferred Stock and suspended redemptions for all of its outstanding non-traded preferred stock.
Ashford Hospitality to divest three properties for $69.5 million in total revenue
Ashford Hospitality announced that it has signed definitive agreements to sell the Le Pavillon, New Orleans, a Tribute Portfolio Hotel, the Embassy Suites by Hilton Austin Arboretum, and the Embassy Suites by Hilton Houston Near the Galleria. These sales are expected to generate approximately $69.5M in aggregate gross proceeds. Based on current mortgage interest rates, the company expects more than $2M in annual cash flow improvement and $14.5M in future capital expenditure savings following the sales. The agreement for the 226-room Le Pavillon is for $42.5M or $188,000 per key. The sale is expected to be completed in December and is subject to normal closing conditions. The company provides no assurances that the sale will be completed on these terms or at all. The sale price represents a 2.6% capitalization rate on net operating income or a multiple of 27.2 times Hotel EBITDA for the twelve months ended September 30. The agreement for Embassy Suites by Hilton Austin Arboretum and Embassy Suites by Hilton Houston Near the Galleria, totaling 300 rooms, is for $27M or $90,000 per key. The sale is expected to be completed in January 2026 and is subject to normal closing conditions. The company provides no assurances that the sale will be completed on these terms or at all. When adjusted for the company's anticipated capital expenditures of $14.5M, the sale price represents a 2.2% capitalization rate on net operating income or a multiple of 29.9 times Hotel EBITDA for the twelve months ended September 30. Excluding the anticipated capital spend, the combined sale price represents a 3.3% capitalization rate on net operating income or a multiple of 19.5 times Hotel EBITDA for the twelve months ended September 30.
Ashford Hospitality to divest Residence Inn in San Diego for $42 million
Ashford Hospitality has signed a definitive agreement to sell the 150-room Residence Inn San Diego Sorrento Mesa located in San Diego, California for $42.0M or $280K per key. The sale is expected to be completed in October and is subject to normal closing conditions. The company provides no assurances that the sale will be completed on these terms or at all. When adjusted for the company's anticipated capital expenditures of $16.0M, the sale price represents a 5.7% capitalization rate on net operating income or a multiple of 15.3 times Hotel EBITDA for the twelve months ended July 31, 2025. Excluding the anticipated capital spend, the combined sale price represents a 7.9% capitalization rate on net operating income or a multiple of 11.1 times Hotel EBITDA for the twelve months ended July 31, 2025.
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