US-based real estate investment company Ashford Hospitality Trust has completed the sale of four hotels and agreed to sell two more as part of a portfolio streamlining plan.
The company plans to use most of the proceeds to reduce mortgage debt and expects the transactions to eliminate more than $60m in future capital expenditures.
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The closed disposals include La Posada de Santa Fe, Hilton St Petersburg Bayfront, Hilton Alexandria Old Town, and Embassy Suites by Hilton Palm Beach Gardens PGA Boulevard.
These four assets generated $252.5m in gross proceeds, equating to $280,000 per room.
On a trailing 12-month basis to 31 December 2025, the combined sale price reflects a 6.0% capitalisation rate on net operating income (NOI), or 14.5 times hotel earnings before interest, taxes, depreciation, and amortisation (EBITDA), when adjusted for anticipated capital expenditure of $57.6m.
Excluding that spend, the metrics equate to a 7.4% capitalisation rate or 11.8 times hotel EBITDA.
The company has also signed definitive agreements to sell the 168-key Lakeway Resort & Spa for $37.8m ($225,000 per room) and the 150-key Embassy Suites by Hilton Dallas Near the Galleria for $17m ($113,000 per room).
Ashford Hospitality Trust expects these sales to close by May 2026, subject to customary conditions, and stated there is no assurance they will complete on the agreed terms or at all.
Based on the 12 months to 31 December 2025, the combined pricing for the pending sales implies a 4.8% capitalisation rate on NOI, or 16.2 times hotel EBITDA, when adjusted for anticipated combined capital expenditure of $2.5m; excluding that spend, the figures are a 5.0% capitalisation rate or 15.5 times hotel EBITDA.
Ashford Hospitality Trust president and CEO Stephen Zsigray said: “We remain focused on maximising shareholder value, and these sales accomplish all three of our strategic objectives: improved cash flow after debt service, significantly reduced future capital expenditure obligations, and lower portfolio leverage.”
The transactions follow the company’s previous update in February, which reported agreements to sell La Posada de Santa Fe Resort & Spa for $57.5m ($364,000 per room) and Hilton St Petersburg Bayfront for $96m ($288,000 per room), both subject to normal closing conditions at that time.
In the update, the company said these actions supported its efforts to deleverage, boost liquidity, and improve cash flow.
