Ashford Trust sells Virginia asset as it sheds portfolio

ALEXANDRIA, Virginia — Dallas-based REIT Ashford Hospitality Trust has sold another asset, the 252-key Hilton Alexandria Old Town in Virginia, to Chicago-based Lodging Capital Partners for $58 million in an all-cash deal, according to a SEC filing on March 31.

This is the second time that Lodging Capital Partners has owned the asset. After owning it for five years, it sold the hotel to Ashford Hospitality Trust in 2018 for $111 million.

When Ashford Trust purchased the property in 2018, it received a $73.5 million, five-year interest-only, nonrecourse mortgage. According to the filing, Ashford Trust repaid $32.5 million on a loan after the sale.  The REIT reported a $28.4 million operating income loss on the property as part of its 2025 year-end earnings.

Ashford Trust President and CEO Stephen Zsigray said selling assets is an essential part of the REIT’s plan to grow EBITDA and its value to investors. In February, during the REIT’s Q4 and year-end 2025 earnings call, he said the company is currently marketing and negotiating off-market transactions on 18 additional hotels.

In December, Ashford Trust formed a special committee “to evaluate strategic alternatives to maximize shareholder value, including a potential transaction.”  

The REIT has sold a number of properties in the past six months, including:

• The La Posada de Santa Fe Resort & Spa in New Mexico sold to New Mexico-based Abo Empire for $57.5 million.
• The Le Pavillon New Orleans in Louisiana was sold to an investor group led by New Orleans businessman Bobby Guidry and Florida developer David Bansmer for $42.5 million.
• The Hilton St. Petersburg Bayfront in Florida sold to Delray Beach, Florida-based Kolter Group for $96 million.
• The Embassy Suites by Hilton Austin Arboretum in Austin, Texas and the Embassy Suites by Hilton Houston Near the Galleria in Houston (a total of 300 keys) to Galleria Lodging LP and Arboretum Lodging LP in a combined transaction for $27 million.