Core Insights - Ashford Hospitality Trust has successfully refinanced the mortgage loan for the 673-room Renaissance Hotel in Nashville, Tennessee, indicating positive developments in financing markets [1][4]. Financing Details - The new non-recourse loan has a balance of $218.1 million, with a two-year term and three one-year extension options, maturing in September 2030. The loan features an interest-only structure with a floating interest rate of SOFR + 2.26% [2]. - The previous loan was $267.2 million with a higher floating interest rate of SOFR + 3.98% [2]. Preferred Equity Investment - In conjunction with the refinancing, the preferred equity investment on the property was increased by $53.0 million, and the all-in rate of return on the preferred equity was reduced from 14% to 11.14% [3]. Management Commentary - The President and CEO of Ashford Trust expressed optimism regarding the improvement in financing markets, which facilitated the refinancing and is expected to result in significant annual interest expense savings [4].
ASHFORD HOSPITALITY TRUST ANNOUNCES REFINANCING OF MORTGAGE LOAN SECURED BY THE RENAISSANCE NASHVILLE HOTEL