Ashford Inks Agreement to Sell Residence Inn San Diego Sorrento Mesa

Core Insights - Ashford Hospitality Trust (AHT) has signed a definitive agreement to sell the 150-room Residence Inn San Diego Sorrento Mesa for $42 million, with the sale expected to close in October 2025 [1][6] - The sale price reflects a capitalization rate of 5.7% based on net operating income, considering expected capital expenditures of $16 million, or a 7.9% capitalization rate without the anticipated capital spend [2][6] - The CEO stated that the sale aligns with the company's strategy to deleverage its portfolio and enhance financial flexibility for shareholders [3][6] Financial Metrics - The capitalization rate of 5.7% corresponds to a multiple of 15.3 times Hotel EBITDA for the 12 months ending July 31, 2025, while excluding capital expenditures results in a capitalization rate of 7.9% and a multiple of 11.1 times Hotel EBITDA [2][6] - Over the past three months, AHT's shares have increased by 5.6%, outperforming the industry growth of 0.7% [3] Market Position - AHT is focused on addressing strategic financing challenges and is well-positioned to capitalize on favorable market conditions [3] - The company is part of the broader REIT sector, with other better-ranked stocks such as Plymouth Industrial REIT and Crown Castle currently holding a Zacks Rank 2 (Buy) [4]