Ashford Hospitality Trust (AHT) completed the sale of the 300‑room Embassy Suites by Hilton Houston Near the Galleria and the Embassy Suites by Hilton Austin Arboretum on February 9 and February 20, 2026, respectively, generating $27 million in gross proceeds—$13.5 million for each property, or $90,000 per key.
The company has entered into definitive agreements to sell the 157‑room La Posada de Santa Fe Resort & Spa for $57.5 million and the 333‑room Hilton St. Petersburg Bayfront for $96 million, with both transactions expected to close in March 2026. Adjusted for anticipated capital expenditures, the combined sale price of the two Embassy Suites hotels yields a 1.7% capitalization rate on net operating income and a 34.5‑times EBITDA multiple for the twelve months ended December 31 2025. In contrast, the La Posada sale, after a $18 million capital‑expenditure adjustment, produces a 5.9% cap rate and a 15.1‑times EBITDA multiple, while the Hilton Bayfront sale, adjusted for $23 million in capital expenditures, results in a 5.5% cap rate and a 16.1‑times EBITDA multiple.
The four sales are projected to add more than $2 million in annual cash‑flow improvement and $55.5 million in future capital‑expenditure savings, reinforcing AHT’s free‑of‑debt position and supporting long‑term value creation. By reducing interest and capital‑expenditure obligations, the company is improving liquidity and coverage metrics for its recently extended MS 17 loan pool and increasing portfolio cash flow after debt service.
"We continue to see depth in buyer interest across our portfolio result in strong asset valuations. Strategic sales continue to be a core component of our plan to reduce leverage and improve cash flow via interest expense and capital expenditure relief. Proceeds from these transactions are primarily used to retire debt, positioning the Company for long‑term value creation," said Stephen Zsigray, President and Chief Executive Officer. "These transactions reflect our continued focus on creating shareholder value via multiple avenues. In addition to our GRO AHT effort aimed at driving increased performance, selling these two non‑core assets has deleveraged the platform, improved the coverage metrics of our recently extended MS 17 loan pool and increased portfolio cash flow after debt service. We anticipate pursuing similar opportunistic sales in the coming months," he added.
AHT is scheduled to release its Q4 2025 earnings on February 25 2026, with consensus estimates of $265.9 million in revenue and an EPS of –$12.33. The asset sales are part of a broader deleveraging strategy that addresses the company’s historically high leverage and sustained losses, positioning it for a more resilient financial profile.
The divestitures strengthen AHT’s balance sheet, enhance liquidity, and provide a foundation for future growth initiatives while reducing debt‑service risk. The company’s focus on selective asset sales signals a disciplined approach to portfolio optimization and long‑term value creation.
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