ASHFORD HOSPITALITY TRUST ANNOUNCES EXTENSION OF HIGHLAND LOAN AND SUSPENSION OF PREFERRED DIVIDENDS
Rhea-AI Summary
Ashford Hospitality Trust (NYSE: AHT) extended its Highland mortgage loan secured by 18 hotels and paid down the loan by $10.0 million to a current balance of $723.6 million, representing approximately 65% of appraised value. The loan's final maturity is July 9, 2026. To preserve liquidity while evaluating strategic alternatives, the company suspended preferred dividends, including amounts declared for recordholders of Series D, F, G, H, I, J, K, L and M as of Dec 31, 2025 and payable on Jan 15, 2026. The company said it intends to pay previously declared but unpaid dividends as soon as reasonably practicable and will evaluate future dividends quarterly.
Business focus: the company is a REIT investing predominantly in upper upscale, full-service hotels.
Positive
- Loan extended on 18 hotels, preserving financing flexibility
- $10.0 million paydown reduced outstanding Highland loan balance
- Loan balance at $723.6 million (~65% of appraised value)
Negative
- Suspension of preferred dividends declared for record date Dec 31, 2025
- Highland loan has near-term final maturity on July 9, 2026
- Large outstanding secured loan of $723.6 million remains on balance sheet
News Market Reaction – AHT
On the day this news was published, AHT declined 8.10%, reflecting a notable negative market reaction. Argus tracked a peak move of +11.8% during that session. Argus tracked a trough of -13.6% from its starting point during tracking. Our momentum scanner triggered 13 alerts that day, indicating notable trading interest and price volatility. This price movement removed approximately $3M from the company's valuation, bringing the market cap to $28M at that time.
Data tracked by StockTitan Argus on the day of publication.
Additionally, to preserve the Company's liquidity position as it evaluates strategic alternatives, preferred dividends have been suspended, including dividends previously declared for recordholders of the Company's Series D, F, G, H, I, J, K, L and M preferred stock as of December 31, 2025, and payable on January 15, 2026. The Company intends to pay the previously declared but unpaid dividends as soon as reasonably practicable. Any accrued but unpaid dividends will accrue in accordance with the terms outlined in the applicable governing documents for each series of preferred stock. The Company will continue to evaluate potential future dividends on a quarterly basis.
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-announces-extension-of-highland-loan-and-suspension-of-preferred-dividends-302659722.html
SOURCE Ashford Hospitality Trust, Inc.
FAQ
What did Ashford Hospitality Trust (AHT) announce on January 13, 2026?
Which preferred stock series were affected by AHT's dividend suspension?
What is the current Highland loan balance and loan-to-appraised-value for AHT?
When does the extended Highland loan mature for AHT (NYSE: AHT)?
Will AHT eventually pay the previously declared preferred dividends?
How will AHT decide on future dividends after the January 2026 suspension?
