Ashford Hospitality Locks In $580M Refinance For 16 Hotels Across The Country
Ashford Hospitality Trust secured a $580M debt package from Bank of America and Sculptor Capital Management, an alternative lender, to refinance 16 hotels, including the Hyatt Regency Coral Gables and the Beverly Hills Marriott, Commercial Observer reported.
The financing includes 16 hotels valued at $861M, according to a press release.
The financing is nonrecourse and has a two-year term with three one-year extension options, given the borrower satisfies certain conditions, according to Ashford. It comes with a floating interest rate of the secured overnight financing rate plus 4.37%.
The previous loans on the properties had a combined outstanding loan balance of approximately $439M. That debt was slated to mature this summer, CoStar reported.
“With the closing of this refinancing along with the full payoff of our strategic financing, we’ve addressed several pending loan maturities and eliminated all corporate-level debt,” Ashford Hospitality Trust President and CEO Stephen Zsigray said in a press release.
Ashford also extended its mortgage by 14 months on the Hotel Indigo Atlanta Midtown, which has a balance of $12M, according to CO.
The hotel REIT has been playing defense over the last year or so. Ashford was busy in 2024 selling assets and extending loans in the face of a wave of maturing debt.
In February 2024, Ashford announced a plan to sell off properties to pay $2.6B in debt set to mature in 2026 and reduce costs through measures including layoffs.
