Ashford Hospitality Trust Announces Progress In Deleveraging Plan With Agreement To Sell The Residence Inn Salt Lake City For $19.2M
Portfolio Pulse from Benzinga Newsdesk
Ashford Hospitality Trust, Inc. (AHT) has signed an agreement to sell the Residence Inn in Salt Lake City for $19.2 million, aiming to use the proceeds to pay down debt. The sale, expected to close in early March, is part of Ashford Trust's deleveraging plan. The transaction's terms indicate a 4.6% capitalization rate on 2023 net operating income, adjusting for anticipated capital expenditures, or 18.2x 2023 Hotel EBITDA. Without these adjustments, the sale price reflects a 6.0% capitalization rate or 14.0x 2023 Hotel EBITDA.
February 16, 2024 | 1:11 pm
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Ashford Hospitality Trust, Inc. (AHT) is selling the Residence Inn Salt Lake City for $19.2 million to pay down debt, indicating progress in its deleveraging plan.
The sale of the Residence Inn Salt Lake City is a positive development for AHT, indicating successful progress in its deleveraging strategy. By using the proceeds to pay down debt, AHT is improving its financial health and potentially its attractiveness to investors. The transaction's terms, including the capitalization rate and EBITDA multiples, suggest a favorable deal for AHT, likely to be viewed positively by the market in the short term.
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