- Ashford Hospitality Trust (AHT, Financial) successfully extends a $409.8 million mortgage loan secured by 17 hotels.
- The loan maturity has been extended from November 2024 to March 2026, with two additional one-year extensions possible.
- Approximately 60% of AHT's debt now matures in 2027 or beyond, improving the company's debt structure.
Ashford Hospitality Trust, Inc. (AHT) has announced the successful extension of its Morgan Stanley Pool mortgage loan, which is secured by 17 hotels. The loan, initially set to mature in November 2024, now has an extended maturity date of March 2026. The company also has the option to further extend the maturity by two additional one-year periods, potentially reaching March 2028.
The current balance of the loan stands at $409.8 million, and it continues to carry a floating interest rate of SOFR plus 3.39%. This extension provides Ashford Hospitality Trust with greater flexibility, particularly the ability to release assets upon sale, enhancing the company's operational strategies.
Following this extension and the refinancing of 16 hotels completed in February, approximately 60% of Ashford Hospitality Trust's outstanding debt now has maturities extending to 2027 and beyond. This realignment significantly reduces immediate refinancing pressures, allowing the company to focus on its core strategy of investing primarily in upper-upscale, full-service hotels.
Ashford Hospitality Trust is a real estate investment trust (REIT) focusing on investments in the upper-upscale and full-service hotel sector, aiming to optimize its portfolio and enhance value for shareholders.
