ASHFORD HOSPITALITY TRUST SEES STRONG BUYER DEMAND IN MULTIPLE HOTEL TRANSACTIONS AND CLOSINGS

Rhea-AI Summary

Ashford Hospitality Trust (NYSE: AHT) announced definitive agreements to sell La Posada de Santa Fe Resort & Spa for $57.5M and Hilton St. Petersburg Bayfront for $96M, and closed sales of two Embassy Suites properties generating $27M in gross proceeds.

These transactions are intended to reduce leverage, retire debt, and are expected to deliver more than $2M in annual cash flow improvement and $55.5M in future capital expenditure savings.

Positive

• Agreed sales totaling $153.5M in new dispositions
• $27M closed gross proceeds from two Embassy Suites sales
• Expected >$2M annual cash flow improvement
• Projected $55.5M in future capital expenditure savings

Negative

• Sales are subject to normal closing conditions and not assured
• Anticipated capital expenditures reduce net deal yields by millions
• Closed Embassy Suites sales implied a low 1.7% capitalization rate after capex

Key Figures

La Posada sale price: $57.5 million La Posada room count: 157 rooms La Posada cap rate (with capex): 5.9% +5 more

8 metrics

La Posada sale price $57.5 million Agreement for 157-room La Posada de Santa Fe Resort & Spa

La Posada room count 157 rooms La Posada de Santa Fe Resort & Spa size

La Posada cap rate (with capex) 5.9% Capitalization rate on net operating income incl. $18M capex

La Posada EBITDA multiple (with capex) 15.1x Multiple of Hotel EBITDA for twelve months ended Dec 31, 2025

Hilton St. Petersburg sale price $96 million Agreement for 333-room Hilton St. Petersburg Bayfront

Hilton St. Petersburg room count 333 rooms Hilton St. Petersburg Bayfront size

Embassy Suites gross proceeds $27 million Closed sales of two Embassy Suites hotels, 300 rooms total

Future capex savings $55.5 million Expected future capital expenditure savings from four sales

Market Reality Check

Price: $2.85 Vol: Volume 79,953 is 1.49x th...

normal vol

$2.85 Last Close

Volume Volume 79,953 is 1.49x the 20-day average of 53,532, indicating elevated trading interest ahead of this update. normal

Technical Pre-news price at 2.845 trades well below the 200-day MA of 5.21 and sits close to the 52-week low of 2.74, far from the 52-week high of 8.8799.

Peers on Argus

Before this news, AHT was down 3.72%. Peers INN, RLJ, XHR, and PEB were also low...

Before this news, AHT was down 3.72%. Peers INN, RLJ, XHR, and PEB were also lower (about -1.61% to -3.31%), while SVC was up 1.43%. The predominantly negative peer moves suggest a broader hotel REIT downdraft, even as AHT announces property sales and deleveraging steps.

Common Catalyst Sector peer XHR reported earnings today, indicating part of the group’s activity is tied to fundamental news flow such as quarterly results.

Historical Context

5 past events · Latest: Jan 27 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 27	Tax reporting update	Neutral	-2.2%	Detailed 2025 preferred share distribution tax reporting and Form 1099-DIV info.
Jan 13	Loan & dividends	Negative	-8.1%	Extended Highland loan while suspending preferred dividends to preserve liquidity.
Jan 07	Earnings call setup	Neutral	+3.2%	Announced dates and access details for Q4 2025 earnings release and call.
Dec 18	Leadership change	Neutral	-1.8%	Named Jim Plohg EVP, General Counsel and Secretary across Ashford entities.
Dec 09	Strategic review	Negative	+2.9%	Formed Special Committee to review strategic alternatives and ended certain preferred offerings.

Pattern Detected

Recent news has produced mixed reactions: balance-sheet and capital structure updates have sometimes led to notable declines, while strategic review and conference-call announcements saw modest gains.

Recent Company History

Over the last few months, Ashford Hospitality Trust has focused on balance sheet actions and strategic options. A Dec 9, 2025 update launched a review of strategic alternatives and highlighted asset sales and a valuation gap. Subsequent items included setting Q4 earnings dates on Jan 7, 2026, extending the Highland loan and suspending preferred dividends on Jan 13, 2026, tax reporting details on Jan 27, 2026, and a senior legal appointment on Dec 18, 2025. Today’s hotel sale transactions align with the earlier emphasis on deleveraging and asset sales.

Market Pulse Summary

This announcement details multiple hotel asset sales and agreements that the company ties to delever...

Analysis

This announcement details multiple hotel asset sales and agreements that the company ties to deleveraging and liquidity. Transactions include La Posada de Santa Fe and Hilton St. Petersburg Bayfront, plus closed sales of two Embassy Suites properties, together expected to add more than $2 million in annual cash flow improvement and $55.5 million in future capex savings. In context of earlier strategic review and loan-related filings, investors may monitor closing execution, debt repayment progress, and upcoming earnings disclosures to assess ongoing balance sheet risk.

Key Terms

capitalization rate, net operating income, reit, forward-looking statements

4 terms

capitalization rate financial

"the sale price represents a 5.9% capitalization rate on net operating income"

The capitalization rate is a percentage that helps investors estimate how much money a property or investment might generate relative to its value. It’s similar to a return rate, showing how quickly an investment could pay for itself over time. This rate helps compare different investments and assess their potential profitability.

net operating income financial

"represents a 5.9% capitalization rate on net operating income or a multiple of 15.1 times"

Net operating income is the profit a business makes from its core operations after subtracting the costs directly related to running those operations, but before accounting for taxes, interest, or other expenses. It shows how efficiently a company is generating income from its main activities. Investors use this figure to assess the company's operational performance and profitability.

reit financial

"Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing"

A real estate investment trust (REIT) is a company that owns, operates, or finances income-producing real estate, like shopping centers, apartments, or office buildings. For investors, REITs offer a way to invest in real estate without having to buy property directly, often providing regular income through dividends. They function like a mutual fund for real estate, making it easier for people to add property investments to their portfolio.

forward-looking statements regulatory

"Certain statements and assumptions in this press release contain or are based upon "forward-looking" information"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

AI-generated analysis. Not financial advice.

DALLAS, Feb. 24, 2026 /PRNewswire/ -- Ashford Hospitality Trust, Inc. (NYSE: AHT) (the "Company") today provided updates on several strategic transactions, highlighting robust buyer demand and significant market activity across its portfolio of upper-upscale hotels. The Company has entered into definitive agreements to sell two properties and has successfully closed on the sales of two previously disclosed transactions.

The Company has received strong interest from buyers on multiple assets, demonstrating the underlying value in its portfolio. These activities support the Company's ongoing strategy to deleverage, increase liquidity, and improve cash flow.

"We continue to see depth in buyer interest across our portfolio result in strong asset valuations," said Stephen Zsigray, President and Chief Executive Officer. "Strategic sales continue to be a core component of our plan to reduce leverage and improve cash flow via interest expense and capital expenditure relief. Proceeds from these transactions are primarily used to retire debt, positioning the Company for long-term value creation."

La Posada de Santa Fe Resort & Spa

The agreement for the 157-room La Posada de Santa Fe Resort & Spa is for $57.5 million or $364,000 per key. The sale is expected to be completed in March 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 $18 million, the sale price represents a 5.9% capitalization rate on net operating income or a multiple of 15.1 times Hotel EBITDA for the twelve months ended December 31, 2025. Excluding the anticipated capital spend, the combined sale price represents a 7.8% capitalization rate on net operating income or a multiple of 11.5 times Hotel EBITDA for the twelve months ended December 31, 2025.

Hilton St. Petersburg Bayfront

The agreement for the 333-room Hilton St. Petersburg Bayfront is for $96 million or $288,000 per key. The sale is expected to be completed in March 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 $23 million, the sale price represents a 5.5% capitalization rate on net operating income or a multiple of 16.1 times Hotel EBITDA for the twelve months ended December 31, 2025. Excluding the anticipated capital spend, the combined sale price represents a 6.8% capitalization rate on net operating income or a multiple of 13.0 times Hotel EBITDA for the twelve months ended December 31, 2025.

Closed Transactions: Embassy Suites by Hilton Houston Near the Galleria and Embassy Suites by Hilton Austin Arboretum

Ashford Trust has successfully closed on the previously announced sales of the Embassy Suites by Hilton Houston Near the Galleria and the Embassy Suites by Hilton Austin Arboretum, representing 300 rooms. These transactions generated $27 million in gross proceeds, or $90,000 per key.

When adjusted for the Company's anticipated capital expenditures of $14.5 million, the sale price represents a 1.7% capitalization rate on net operating income or a multiple of 34.5 times Hotel EBITDA for the twelve months ended December 31, 2025. Excluding the anticipated capital spend, the combined sale price represents a 2.7% capitalization rate on net operating income or a multiple of 22.5 times Hotel EBITDA for the twelve months ended December 31, 2025.

Together, these four sales are expected to contribute to more than $2 million in annual cash flow improvement and $55.5 million in future capital expenditure savings based on current mortgage interest rates.

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-sees-strong-buyer-demand-in-multiple-hotel-transactions-and-closings-302695681.html

SOURCE Ashford Hospitality Trust, Inc.

FAQ

What hotels did Ashford Hospitality Trust (AHT) agree to sell on Feb 24, 2026?

The company agreed to sell La Posada de Santa Fe Resort & Spa and Hilton St. Petersburg Bayfront. According to the company, the La Posada sale is for $57.5M and the Hilton sale is for $96M, each expected to close in March 2026.

How much did AHT receive from the closed Embassy Suites sales and how many rooms were involved?

AHT generated $27M in gross proceeds from two closed Embassy Suites sales covering 300 rooms. According to the company, proceeds equate to about $90,000 per key for those combined transactions.

What cash flow and capital expenditure benefits did AHT say will result from these sales?

The company expects more than $2M in annual cash flow improvement and $55.5M in capex savings. According to the company, savings are based on current mortgage interest rates and portfolio dispositions.

What capitalization rates and Hotel EBITDA multiples did AHT report for La Posada (AHT)?

Adjusted for anticipated capex, La Posada implies a 5.9% cap rate and 15.1x Hotel EBITDA. According to the company, excluding capex the sale represents a 7.8% cap rate or 11.5x Hotel EBITDA for the twelve months ended Dec 31, 2025.

How does the Hilton St. Petersburg Bayfront sale (AHT) compare on a per-key basis and multiples?

The Hilton agreement is priced at $96M or $288,000 per key. According to the company, adjusted for anticipated capex it implies a 5.5% cap rate and 16.1x Hotel EBITDA for the twelve months ended Dec 31, 2025.

Are the announced AHT sales final and when are they expected to close?

The announced sales are under definitive agreements but are subject to normal closing conditions and not guaranteed. According to the company, both La Posada and Hilton closings are expected in March 2026.