Ashford Hospitality Trust to sell three hotels in US for $69.5m

Core Insights - Ashford Hospitality Trust has entered into binding agreements to divest three hotels, generating estimated gross proceeds of approximately $69.5 million, which will enhance annual cash flow by over $2 million and save $14.5 million in future capital expenditures [1][5][6] Group 1: Hotel Divestitures - The sale of the 226-room Le Pavillon hotel in New Orleans is valued at $42.5 million, approximately $188,000 per room, with a closing date scheduled for next month [2] - The combined sale of the two Embassy Suites by Hilton hotels in Austin and Houston, totaling 300 rooms, is priced at $27 million, equating to $90,000 per room, with completion expected in January 2026 [3] - Adjusting for anticipated capital expenditures, the combined sale reflects a 2.2% capitalization rate on net operating income (NOI) or a multiple of 29.9 times hotel EBITDA for the 12 months ending September 30, 2025 [4] Group 2: Strategic Financial Management - The majority of the proceeds from these sales will be used to retire mortgage debt, improving cash flow after debt service and eliminating significant future capital expenditure obligations [6] - The company emphasizes that strategic asset sales are crucial for deleveraging and enhancing cash flow and liquidity, reflecting the value within its portfolio [5]