Ashford Hospitality Trust to sell three hotels in US for $69.5m

Ashford Hospitality Trust has entered binding agreements to divest Le Pavillon edifice successful New Orleans, and 2 Embassy Suites by Hilton hotels successful Houston and Austin, US.

The combined gross proceeds from these transactions are estimated astatine astir $69.5m.

The institution estimates bespeak this volition pb to an yearly currency travel betterment exceeding $2m and anticipated savings of $14.5m successful aboriginal superior expenditures, based connected prevailing owe involvement rates.

The statement for the 226-room Le Pavillon sets the transaction worth astatine $42.5m, translating to astir $188,000 per room.

Closing of the merchantability is presently scheduled for adjacent month, taxable to customary conditions.

The transaction represents a 2.6% capitalisation complaint calculated connected nett operating income (NOI) oregon a aggregate of 27.2 times edifice net earlier interest, taxes, depreciation, and amortisation (EBITDA) for the 12 months completed connected 30 September 2025.

Ashford has stated that determination tin beryllium nary warrant of completion connected these terms.

For the Embassy Suites by Hilton Austin Arboretum and Embassy Suites by Hilton Houston Near the Galleria, totalling 300 rooms, the merchantability terms is agreed astatine $27m. This equates to $90,000 per room.

Completion of this merchantability is expected successful January 2026, besides taxable to modular closing conditions.

Adjusting for anticipated superior expenditure of $14.5m, the combined merchantability reflects a 2.2% capitalisation complaint connected NOI oregon a aggregate of 29.9 times edifice EBITDA for the 12 months ending connected 30 September 2025.

Without factoring successful the expected superior spend, the combined merchantability terms reflects a capitalisation complaint of 3.3% oregon a aggregate of 19.5 times edifice EBITDA for the aforesaid period.

Ashford Hospitality Trust president and main enforcement serviceman Stephen Zsigray said: “Strategic plus income volition proceed to play an important portion successful our program to deleverage Ashford Trust portion besides improving currency travel and liquidity. We judge that the charismatic headdress rates achieved connected these divestitures bespeak the worth wrong our portfolio.

“The bulk of proceeds volition beryllium deployed instantly to discontinue owe debt, improving currency travel aft indebtedness work portion eliminating sizeable aboriginal superior expenditure obligations. This disciplined attack volition amended presumption the Company for sustained worth creation.”

Ashford operates arsenic a existent property concern spot focused connected investments chiefly successful full-service precocious upscale hotels.

Ashford Hospitality Trust successful August completed income of the Residence Inn Evansville East successful Indiana for $6m and the Hilton Houston NASA Clear Lake successful Texas for $27m.