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Hotel REIT Says It Will ‘Likely’ Return 19 Properties to Lenders

Ashford Hospitality Trust plans to return 19 hotels to lenders, avoiding a $255 million paydown, due to negative equity and challenging market conditions.

1 min read
  • Ashford Hospitality Trust expects to return 19 hotels to lenders, avoiding a $255 million paydown and $80 million in capital expenditures.
  • The equity in the properties is already negative, based on comparable sales and broker's opinion of value.
  • The company worked out deals to extend debt on 15 other hotels in the portfolio by providing $129 million in paydowns.
  • Hotel values were down 3% through June, with many markets not forecasted to reach pre-pandemic levels until 2025 or 2026.
Hotel REIT Says It Will ‘Likely’ Return 19 Properties to Lenders
Ashford Hospitality Trust Inc. expects to return 19 hotels to lenders in cities including Las Vegas and Atlanta, declining to pour more cash into the properties, which are part of a $982 million mortgage pool that missed a repayment deadline in June.
BloombergJohn Gittelsohn

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