Ashford Trust sells 2 more assets

DALLAS – Ashford Hospitality Trust reports it has entered into definitive agreements to sell two properties and has closed on the sales of two previously disclosed transactions as part of its strategy to deleverage, increase liquidity and improve cash flow.

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.

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.

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 12 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 12 months ended December 31, 2025.

The agreement for the 333-room Hilton St. Petersburg Bayfront is for $96 million or $288,000 per key. The sale is also expected to be completed in March 2026.

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 12 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 12 months ended December 31, 2025.

Ashford Trust has 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 12 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 12 months ended December 31, 2025.

“We continue to see depth in buyer interest across our portfolio result in strong asset valuations," said AHT President and CEO Stephen Zsigray. “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.”

The news comes after new Ashford Inc. President Hector Sanchez told Hotel Investment Today earlier in February that along with ongoing deals to sell Ashford Trust assets the process for selling Braemar REIT assets is much further along.

“Things are moving along, I would say very well… We’re closing in on a handful of things and [we are at] a fork in the road of what direction we go. So, we’re definitely excited about that,” he said.

When asked about selling a REIT’s entire portfolio — a distinct possibility for Braemar, which has nine resorts and five urban properties — versus selling individual assets, he said it could be easier and faster to sell the whole thing, but the process is complicated.