In Brief: Ashford Hospitality Trust has closed on the sale of four hotels and entered into definitive agreements to sell two additional hotels, with the transactions totaling $252.5 million in gross proceeds for the completed sales and pending sales expected to close by May 2026.
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Hilton Alexandria Old Town – Image Credit Hilton
Ashford Hospitality Trust, Inc. has completed the sale of four hotels and signed definitive agreements to sell two additional properties as part of its ongoing portfolio optimization strategy. The completed transactions include Hilton St. Petersburg Bayfront, La Posada de Santa Fe, Hilton Alexandria Old Town, and Embassy Suites by Hilton Palm Beach Gardens PGA Boulevard, generating $252.5 million in gross proceeds, or $280,000 per key.
Adjusted for anticipated capital expenditures of $57.6 million, the sale price for these four hotels represents a 6.0% capitalization rate on net operating income or a multiple of 14.5 times Hotel EBITDA for the twelve months ended December 31, 2025. Excluding the anticipated capital spend, the combined sale price represents a 7.4% capitalization rate on net operating income, or an 11.8x multiple of Hotel EBITDA for the same period.
The company has also entered into definitive agreements to sell the 168-room Lakeway Resort & Spa for $37.8 million, or $225,000 per key, and the 150-room Embassy Suites by Hilton Dallas Near the Galleria for $17.0 million, or $113,000 per key. These sales are expected to close by May 2026, subject to normal closing conditions. No assurances can be given that these sales will be completed on the stated terms or at all.
For the two pending sales, adjusted for anticipated combined capital expenditures of $2.5 million, the sale price represents a 4.8% capitalization rate on net operating income or a multiple of 16.2 times Hotel EBITDA for the twelve months ended December 31, 2025. Excluding the anticipated capital spend, the combined sale price represents a 5.0% capitalization rate on net operating income or a multiple of 15.5 times Hotel EBITDA for the same period.
The majority of proceeds from these transactions will be used to pay down mortgage debt. The sales are expected to result in more than $60 million in future capital expenditure savings.
