DALLAS, Feb. 26,
2024 /PRNewswire/ -- Ashford Hospitality Trust, Inc.
(NYSE: AHT) ("Ashford Trust" or the "Company") today provided an
update on its previously announced plan to pay off its strategic
financing which has a final maturity date in January 2026. This plan includes raising capital
through a combination of asset sales, mortgage debt refinancings,
and its non-traded preferred capital offering.
The Company currently has three assets under Purchase and Sale
Agreements (including the recently announced agreement to sell the
Residence Inn Salt Lake City) and three additional assets under
Letters of Intent. The combined sales prices of these six assets
total more than $220 million.
Additional assets are at various stages of the marketing process,
and the Company plans to provide further updates in its earnings
release this week. The Company provides no assurances that these
sales will be completed.
The Company announced last month that it has several assets at
various stages of being available for sale. These assets
include:
- 390-room Hilton Boston Back Bay
– Boston, MA
- 444-room Ritz-Carlton Atlanta – Atlanta, GA
- 296-room Westin Princeton – Princeton, NJ
- 351-room Hyatt Savannah –
Savannah, GA
- 193-room One Ocean –
Atlantic Beach, FL
- 350-room Residence Inn Sea World Orlando – Orlando, FL
- 144-room Residence Inn Salt Lake City – Salt Lake City, UT
- 168-room Courtyard Overland Park – Overland Park, KS
- 90-room Courtyard Manchester – Manchester, CT
- 86-room Hampton Inn Lawrenceville – Lawrenceville, GA
- 90-room SpringHill Suites Kennesaw – Kennesaw, GA
- 87-room Fairfield Inn Kennesaw – Kennesaw, GA
"As we announced last month, we are focused on paying off our
strategic corporate financing in 2024," commented Rob Hays, Ashford Trust's President and Chief
Executive Officer. "We are making tangible progress with the plan
and will continue to provide updates to our shareholders along the
way. Between the excess proceeds from planned asset sales, excess
proceeds from planned property refinancings, and proceeds from our
non-traded preferred capital raise, we believe we have a viable
path to pay off our strategic financing this year."
* * * * *
Ashford Hospitality Trust is a real estate investment trust
(REIT) focused on investing predominantly in upper upscale,
full-service hotels.
Forward-Looking Statements
Certain statements and assumptions in this press release
contain or are based upon "forward-looking" information and are
being made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements in this press release include, among others, statements
about the Company's strategy and future plans, including its plans
to raise capital through a combination of asset sales, mortgage
debt refinancings and non-traded preferred capital raising and to
pay off its strategic financing. These forward-looking statements
are subject to risks and uncertainties. When we use the words "will
likely result," "may," "anticipate," "estimate," "should,"
"expect," "believe," "intend," "could," "plan," or similar
expressions, we intend to identify forward-looking statements. Such
statements are subject to numerous assumptions and uncertainties,
many of which are outside of Ashford Trust's control.
These forward-looking statements are subject to known and
unknown risks and uncertainties, which could cause actual results
to differ materially from those anticipated, including, without
limitation: our ability to raise sufficient capital to pay off our
strategic debt; our ability to repay, refinance, or restructure our
debt and the debt of certain of our subsidiaries; anticipated or
expected purchases or sales of assets; our projected operating
results; completion of any pending transactions; our understanding
of our competition; market trends; projected capital expenditures;
the impact of technology on our operations and business; general
volatility of the capital markets and the market price of our
common stock and preferred stock; availability, terms and
deployment of capital; availability of qualified personnel; changes
in our industry and the markets in which we operate, interest rates
or the general economy; and the degree and nature of our
competition. These and other risk factors are more fully discussed
in Ashford Trust's filings with the Securities and Exchange
Commission.
The forward-looking statements included in this press release
are made only as of the date of this press release. Such
forward-looking statements are based on our beliefs, assumptions,
and expectations of our future performance taking into account all
information currently known to us. These beliefs, assumptions, and
expectations can change as a result of many potential events or
factors, not all of which are known to us. If a change occurs, our
business, financial condition, liquidity, results of operations,
plans, and other objectives may vary materially from those
expressed in our forward-looking statements. You should carefully
consider these risks when you make an investment decision
concerning our securities. Investors should not place undue
reliance on these forward-looking statements. The Company can give
no assurance that these forward-looking statements will be attained
or that any deviation will not occur. We are not obligated to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or circumstances,
changes in expectations, or otherwise, except to the extent
required by law.
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SOURCE Ashford Hospitality Trust, Inc.