ASHFORD HOSPITALITY TRUST ANNOUNCES FULL PAY OFF OF STRATEGIC FINANCING

Rhea-AI Summary

Ashford Hospitality Trust (NYSE: AHT) has announced the complete payoff of its strategic financing, including the exit fee. The financing, which originated in early 2021, played a important role in the company's recovery from COVID-19 pandemic impacts.

The full repayment eliminates all corporate-level debt, strengthening the company's position alongside its recently announced 'GRO AHT' initiative. CEO Stephen Zsigray emphasized that this development will help maximize asset performance and increase shareholder value.

Ashford Hospitality Trust operates as a real estate investment trust (REIT) with a primary focus on investing in upper upscale, full-service hotels.

Positive

• Complete elimination of corporate-level debt
• Full payoff of strategic financing from 2021
• Strengthened financial position post-debt elimination

Negative

• None.

News Market Reaction – AHT

+31.50%

1 alert

+31.50% News Effect

On the day this news was published, AHT gained 31.50%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

DALLAS, Feb. 12, 2025 /PRNewswire/ -- Ashford Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the "Company") announced today that it has fully paid off its strategic financing, including the exit fee.  This financing dates back to early 2021 and was instrumental in helping the Company recover from the impacts of the COVID pandemic.

"We are extremely pleased to announce the full pay off of our strategic financing," commented Stephen Zsigray, Ashford Trust's President and Chief Executive Officer. "Completely eliminating our corporate-level debt fortifies the Company and, along with our recently announced "GRO AHT" initiative, positions Ashford Trust well going forward. We will continue to focus on maximizing the performance and value of our assets and increasing shareholder value."

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-full-pay-off-of-strategic-financing-302375290.html

SOURCE Ashford Hospitality Trust, Inc.

FAQ

What is the significance of AHT paying off its strategic financing?

The payoff eliminates all corporate-level debt, strengthening AHT's financial position and supporting its ability to maximize asset performance and shareholder value.

When did AHT originally secure the strategic financing that was just paid off?

The strategic financing was secured in early 2021 to help the company recover from the impacts of the COVID pandemic.

How does the strategic financing payoff align with AHT's current initiatives?

The payoff complements AHT's recently announced 'GRO AHT' initiative and positions the company to better focus on maximizing asset performance and increasing shareholder value.

What type of properties does AHT primarily invest in?

AHT primarily invests in upper upscale, full-service hotels as part of its REIT portfolio.