ASHFORD HOSPITALITY TRUST ANNOUNCES STRATEGIC PORTFOLIO SALES

Rhea-AI Summary

Ashford Hospitality Trust (NYSE: AHT) has completed strategic asset sales of two properties for a combined $33 million. The transactions include the Hilton Houston NASA Clear Lake for $27 million and the Residence Inn Evansville East for $6 million.

The combined sale price represents a 1.3% capitalization rate on net operating income (adjusted for anticipated capital expenditures) or a 45.3x Hotel EBITDA multiple for the twelve months ended July 31, 2025. Without adjusting for capital spend, these metrics are 2.0% and 28.1x respectively.

The company indicates these non-core asset dispositions align with their GRO AHT performance improvement initiative, helping to deleverage the platform and enhance portfolio cash flow after debt service.

Positive

• Strategic sale of two non-core assets for combined $33 million
• Improved coverage metrics for MS 17 loan pool
• Enhanced portfolio cash flow after debt service
• Platform deleveraging through asset dispositions

Negative

• Low capitalization rate of 1.3% on the sales (adjusted for capital expenditures)
• Reduction in total property portfolio size

Insights

REIT Investment Strategist

AHT's $33M hotel sales represent strategic deleveraging with low cap rates, suggesting properties required significant future investments.

Ashford Hospitality Trust has completed the strategic divestiture of two non-core hotel properties for a combined $33 million - the Hilton Houston NASA Clear Lake ($27 million) and the Residence Inn Evansville East ($6 million). What's particularly notable is the extremely low capitalization rate of these transactions - just 1.3% when adjusted for anticipated capital expenditures, or 2.0% excluding those adjustments.

These remarkably low cap rates (the standard for quality hotel assets typically ranges from 6-8%) and the extraordinarily high EBITDA multiples (45.3x with CapEx adjustments) strongly suggest these properties were underperforming assets requiring substantial future investments. By divesting these properties, AHT has strategically improved its financial position in three critical ways: reducing overall leverage, enhancing coverage metrics on their recently extended MS 17 loan pool, and increasing portfolio cash flow after debt service.

Management's reference to their "GRO AHT" performance initiative coupled with these strategic divestitures signals a dual approach to improving shareholder value - operational enhancements for retained properties while pruning underperforming assets that would drain capital resources. The explicit statement about pursuing "similar opportunistic sales" indicates this is part of a broader portfolio optimization strategy rather than an isolated transaction.

For investors, this represents a positive shift toward financial discipline and strategic focus on the company's core upper upscale, full-service hotel portfolio. The willingness to divest properties at seemingly unfavorable multiples demonstrates management's commitment to long-term portfolio health over short-term optics.

DALLAS, Aug. 25, 2025 /PRNewswire/ -- Ashford Hospitality Trust, Inc. (NYSE: AHT) ("Company") today announced the completion of the sale of the Hilton Houston NASA Clear Lake in Houston, Texas for $27 million and the sale of the Residence Inn Evansville East in Evansville, Indiana for $6 million.

When adjusted for the Company's anticipated capital expenditures, the combined sale price represents a 1.3% capitalization rate on net operating income or a multiple of 45.3 times Hotel EBITDA for the twelve months ended July 31, 2025. Excluding the anticipated capital spend, the combined sale price represents a 2.0% capitalization rate on net operating income or a multiple of 28.1 times Hotel EBITDA for the twelve months ended July 31, 2025.

"These transactions reflect our continued focus on creating shareholder value via multiple avenues," commented President and Chief Executive Officer Stephen Zsigray. "In addition to our GRO AHT effort aimed at driving increased performance, selling these two non-core assets has deleveraged the platform, improved the coverage metrics of our recently extended MS 17 loan pool, and increased portfolio cash flow after debt service. We anticipate pursuing similar opportunistic sales in the coming months."

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-strategic-portfolio-sales-302538082.html

SOURCE Ashford Hospitality Trust, Inc.

FAQ

What properties did Ashford Hospitality Trust (AHT) sell in August 2025?

Ashford Hospitality Trust sold two properties: the Hilton Houston NASA Clear Lake for $27 million and the Residence Inn Evansville East for $6 million, totaling $33 million.

What was the capitalization rate for AHT's property sales in August 2025?

The combined sales represented a 1.3% capitalization rate on net operating income when adjusted for anticipated capital expenditures, or 2.0% excluding capital spend adjustments.

How will these property sales benefit Ashford Hospitality Trust shareholders?

The sales will benefit shareholders by deleveraging the platform, improving coverage metrics of the MS 17 loan pool, and increasing portfolio cash flow after debt service.

What is Ashford Hospitality Trust's strategy following these property sales?

AHT plans to continue pursuing opportunistic sales of non-core assets while focusing on their GRO AHT initiative to drive increased performance.

What type of properties does Ashford Hospitality Trust (AHT) primarily invest in?

Ashford Hospitality Trust is a REIT that focuses on investing predominantly in upper upscale, full-service hotels.