Based in Dallas, Ashford Hospitality Trust (AHT) has recently completed several significant transactions. The trust has sold an 85-room Hampton Inn located in Lawrenceville, Georgia, for $8.1 million, which translates to $95,300 per room. This transaction reflects a 6% capitalization rate based on the net operating income of the last 12 months up to March 2024.
AHT has also relinquished control of 14 additional hotels from two separate loan portfolios to their respective loan servicers. These properties are divided between two major loan groups: a $180.7 million loan portfolio known as “KEYS A” and a $174.4 million portfolio termed “KEYS B.”
In addition to these property transactions, AHT has announced that its CEO, Douglas A. Hays, will resign from his position on June 30. Stephen Zsigray, currently the SVP of corporate finance and strategy, is set to take his place.
Earlier in April, Ashford Inc., an advisor to both AHT and another NYSE-listed REIT, Braemar Hotels & Resorts, revealed plans to withdraw its common stock from NYSE trading this summer, aiming to save $2.5 million annually. In late March, an activist investor, New York City-based Blackwells Capital, initiated a challenge to the board of Braemar Hotels & Resorts by nominating candidates for half of its board seats following an unsuccessful acquisition attempt in December.
During its fourth-quarter earnings call in late February, AHT announced the sale of the 390-room Hilton Boston Back Bay for $171 million to an undisclosed buyer and reported operating losses of $13.3 million for the quarter and $31.3 million for the year 2023. At this time, AHT also shared updates on its strategy to address strategic financing obligations maturing in January 2026, including plans to enhance capital through the sale of assets, refinancing of mortgage debts, and raising non-traded preferred capital.
These recent moves by AHT demonstrate the trust’s continued efforts to address underperforming assets, strengthen its financial position, and adapt to the evolving landscape of the hotel industry.
