DALLAS - Ashford Hospitality Trust, Inc. (NYSE: NYSE:AHT), a real estate investment trust focusing on upscale full-service hotels, has completed the sale of the Hampton Inn in Lawrenceville, Georgia, for $8.1 million. The transaction, which took place at a 6.0% capitalization rate based on the net operating income of the past 12 months through March 2024, is part of the company's broader strategy to reduce debt.
The proceeds from the sale are earmarked for general corporate purposes, including the reduction of strategic financing debt. This move aligns with the company's ongoing deleveraging plan, which has seen significant progress, according to Ashford (NYSE:AINC) Trust's President and CEO, Rob Hays (LON:HAYS). He expressed satisfaction with the transfer of the KEYS A&B loan pool assets to a court-appointed receiver, a step in the company's efforts to manage its obligations.
The KEYS A Loan Pool (NASDAQ:POOL), valued at $180.7 million, and the KEYS B Loan Pool, worth $174.4 million, have been transferred as part of a cooperative process with the servicer, aiming for a consensual foreclosure or deed in lieu of foreclosure. This process has been underway since July 2023. With this transfer, Ashford Trust relinquishes any economic interest in the operation of the associated hotel properties, which include various Courtyard, Residence Inn, SpringHill Suites, and TownePlace Suites locations across the United States.
Hays also noted that Ashford Trust has several other assets currently on the market at different stages of the sales process and anticipates providing updates in the near future.
The company's actions come as part of its efforts to navigate challenges and strategically position itself for the future. However, Ashford Trust's forward-looking statements, including those regarding its strategy and future plans, are subject to risks and uncertainties that could cause actual results to differ from expectations.
Investors are cautioned not to place undue reliance on these statements, which are based on current beliefs, assumptions, and expectations and are subject to changes due to potential events or factors that may arise. This article is based on a press release statement from Ashford Hospitality Trust, Inc.
InvestingPro Insights
Amidst Ashford Hospitality Trust's strategic moves to reduce debt through property sales, the company's financial health and stock performance continue to be a focus for investors. According to real-time data from InvestingPro, Ashford Hospitality Trust has a market capitalization of $47.65 million, reflecting the market's valuation of the company. Despite a challenging period, the company has managed to maintain a positive revenue growth of 10.19% over the last twelve months as of Q1 2023, suggesting some resilience in its operations.
However, the company's stock has been under pressure, trading near its 52-week low and experiencing significant price volatility, with a 1-week total return of -8.4% and a 1-year total return of -64.71%. These figures underscore the challenges faced by Ashford Hospitality Trust, particularly in a competitive and changing hospitality industry.
InvestingPro Tips reveal that Ashford Hospitality Trust is currently trading at a low EBITDA valuation multiple and a low revenue valuation multiple, which may attract investors looking for potentially undervalued stocks. Nevertheless, analysts anticipate a sales decline in the current year, and do not expect the company to be profitable this year. For investors seeking a deeper understanding of Ashford Hospitality Trust's financial position and stock potential, InvestingPro offers additional insights, with 15 more InvestingPro Tips available for those who want to explore further. To access these insights, visit: https://www.investing.com/pro/AHT and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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