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Renaissance Hotel in Nashville, Tennessee – Image Credit Marriott International
Ashford Hospitality Trust, Inc. (NYSE: AHT) today announced that it has closed on the refinancing of the mortgage loan for the 673-room Renaissance Hotel in Nashville, Tennessee.
The new, non-recourse loan has a balance of $218.1 million, and has a two-year term with three one-year extension options, subject to the satisfaction of certain conditions, with a final maturity date of September 2030. The loan is interest only and provides for a floating interest rate of SOFR + 2.26%. The previous loan totaled $267.2 million and provided a floating interest rate of SOFR + 3.98%.
In conjunction with the debt refinancing, the preferred equity investment on the property was upsized by $53.0 million, and the all-in rate of return on the preferred equity was reduced from 14% to 11.14%.
“We are encouraged by the continued improvement of the financing markets, which allowed us to complete this refinancing and will result in millions of dollars in annual interest expense savings,” commented Stephen Zsigray, Ashford Trust’s President and Chief Executive Officer. “This transaction demonstrates our ability to secure financing on favorable terms in the current market.”
Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing predominantly in upper upscale, full-service hotels.
