DALLAS — Ashford Hospitality Trust has received $200 million in debt refinancing for its Ashford Portfolio, a five-hotel portfolio that includes a total of 1,442 rooms throughout the U.S. The Embassy Suites Philadelphia Airport, Embassy Suites Walnut Creek, Hilton Minneapolis/St. Paul Airport Mall of America, Sheraton Mission Valley Diego Hotel and Sheraton Anchorage Hotel & Spa make up the portfolio.
“The portfolio has seen a steady increase in ADR over the past 12 months, and it is well positioned to further capitalize upon operating revenue momentum as lodging market fundamentals continue to improve in 2014,” says Bill Grice, executive vice president of Jones Lang LaSalle’s Hotels & Hospitality Group. Grice secured financing for the REIT along with Mathew Comfort, the firm’s managing director.
All five hotels are centrally located near transportation hubs, commerce centers and tourist attractions. The Embassy Suites Philadelphia Airport is less than a mile from Philadelphia International Airport and is also in close proximity to Citizens Bank Park, Lincoln Financial Field and the Wells Fargo Center. Embassy Suites Walnut Creek sits adjacent to a station of the Bay Area Rapid Transit (BART) in San Francisco’s East Bay, providing easy access to Lesher Center for Arts, Broadway Plaza shopping, Heather Farms and the Napa Valley Wine Country.
As its name suggests, Hilton Minneapolis/St. Paul Airport Mall of America is close to both the airport and the largest mall in America. Though the Sheraton Mission Valley Diego Hotel is located in a quieter San Diego suburb, it is just minutes away from Balboa Park, the San Diego Zoo, Old Town San Diego and Qualcomm Stadium.
Finally, the Sheraton Anchorage Hotel & Spa is home to the award-winning Ice Spa in Anchorage. The hotel also offers easy access to the Anchorage Museum of History and Art, the Eagleglen Golf Course, H2 Oasis Indoor Waterpark and Dena’ina Civic Convention Center.
The funds allowed Ashford to refinance its $165 million mortgage loan, which was due to mature in March 2015. The new non-recourse loan carries a two-year initial term with three one-year extension options, as well as a floating interest rate starting at 4.75 percent.
The refinance also produced about $30 million in excess net proceeds. These funds will be added to Ashford’s unrestricted cash balance.
“This offering provided lenders an outstanding opportunity to finance a strong portfolio held by Ashford Trust, one of the nation’s largest hotel REITs,” Comfort says. “The hotels are backed by institutional sponsorship, best-in-class management and a prominent affiliation with globally recognized brands.”
Ashford Hospitality Trust is a Dallas-based REIT that focuses on the hospitality industry. The trust invests across all segments and at all levels of the capital structure, primarily within the United States, and owns hotels under the Hyatt, Marriott, Hilton, Renaissance and Sheraton brands, among others.
Jones Lang LaSalle’s Hotels & Hospitality Group specializes in luxury, upscale, select service and budget hotels; timeshare and fractional ownership properties; convention centers; mixed-use developments; and other hospitality properties. The group has more than 265 dedicated hotel and hospitality experts.
— Nellie Day