DALLAS — Ashford Hospitality Trust (NYSE: AHT) has announced its intent to list a portfolio of 23 select-service hotels for sale, as the company shifts its investment strategy toward predominantly upper upscale, full-service hotels.
The 23-hotel portfolio for sale totals 4,308 rooms. The hotels are encumbered by approximately $190 million of long-term, fixed-rate debt and $187 million of maturing or floating-rate debt for total debt of approximately $377 million.
The current trailing 12-month NOI for the portfolio is $44 million, and the trailing 12-month RevPAR for the portfolio is approximately $88.
The company plans to use the proceeds from this sale toward acquiring hospitality properties more in line with its new focus on upscale hotels.
“Beginning in November 2013, the Ashford Trust strategy has been evolving,” says Monty J. Bennett, chairman and CEO of Ashford Trust. “We feel that these changes are another step towards our goal with the Ashford group of companies of having very well-defined, distinct strategies within our investment platforms.”
Ashford Hospitality Trust is a real estate investment trust focused on the hospitality sector. According to the company, its portfolio currently consists of 116 properties with over 25,000 rooms. The majority of its existing portfolio operates under brands owned by Marriott, Hilton, Starwood, Hyatt and Intercontinental.
Ashford’s stock price closed on Thursday, June 25, at $8.18 per share, down from $10.91 one year ago.
— Haisten Willis