ASHFORD HOSPITALITY TRUST ANNOUNCES EXTENSION OF MORTGAGE LOAN SECURED BY THE LE PAVILLON HOTEL

Rhea-AI Summary

Ashford Hospitality Trust (NYSE: AHT) has successfully extended its mortgage loan for the 226-room Le Pavillon Hotel in New Orleans, Louisiana. The loan, maintaining its $37.0 million balance with no paydown requirement, had an initial maturity date in December 2024 and now includes two additional one-year extension options, potentially extending to December 2027. The company also announced the hotel's recent conversion to Marriott's Tribute Portfolio, with expectations of improved performance post-conversion.

Positive

• Successful loan extension with no required paydown
• Two additional one-year extension options secured until December 2027
• Hotel conversion to Marriott's Tribute Portfolio brand

Negative

• Continued $37.0 million debt obligation

News Market Reaction – AHT

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-6.55% News Effect

On the day this news was published, AHT declined 6.55%, reflecting a notable negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

DALLAS, Dec. 19, 2024 /PRNewswire/ -- Ashford Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the "Company") announced today that it has successfully extended its mortgage loan secured by the 226-room Le Pavillon Hotel located in New Orleans, Louisiana. The loan had an initial maturity date in December of 2024 and has two additional one-year extension options, subject to the satisfaction of certain conditions, with a final maturity date in December 2027. The loan has been extended with no paydown and continues to have an outstanding balance of $37.0 million.

"We are pleased to announce the extension of this loan," commented Stephen Zsigray, Ashford Trust's President and Chief Executive Officer. "We are also excited about the recent conversion of this hotel to Marriott's Tribute Portfolio and expect performance to ramp up quickly post conversion."

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 plan to pay off strategic financing; 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-mortgage-loan-secured-by-the-le-pavillon-hotel-302336121.html

SOURCE Ashford Hospitality Trust, Inc.

FAQ

What are the terms of AHT's Le Pavillon Hotel loan extension?

The loan extension maintains the $37.0 million balance with no paydown requirement and includes two one-year extension options, potentially extending the maturity date to December 2027.

How many rooms does AHT's Le Pavillon Hotel have?

The Le Pavillon Hotel in New Orleans, Louisiana has 226 rooms.

What brand did AHT convert the Le Pavillon Hotel to?

The Le Pavillon Hotel was recently converted to Marriott's Tribute Portfolio brand.

What is the current outstanding balance of AHT's Le Pavillon Hotel loan?

The outstanding balance of the loan remains at $37.0 million.

When is the final maturity date for AHT's Le Pavillon Hotel loan?

With the extension options, the final maturity date could be December 2027.