Shares of Ashford Hospitality Trust (AHT) have surged after the real estate investment trust revealed its strategy to sell a portion of its hotels in order to pay off debt that is due at the beginning of 2026.
Strong Market Response
In response to this announcement, AHT's shares climbed an impressive 33% to reach $1.78 in morning trading. However, it's worth noting that the stock has faced significant struggles over the past year, with a decline of 74%.
List of Properties for Sale
AHT has provided a list of twelve properties that are currently in the process of being made available for sale. Notable listings include the Hilton Boston Back Bay hotel with 390 rooms, the Ritz-Carlton Atlanta with 444 rooms, and the Westin Princeton with 296 rooms. These properties primarily cater to corporate travelers and are located in urban areas.
While AHT does not anticipate selling all of the listed properties, it plans to prioritize those that offer the best valuations.
Exploring Refinancing Options
In addition to selling hotels, AHT is actively exploring options to refinance its loan backed by the Renaissance Nashville hotel in Tennessee, as well as certain other loans.
"We are confident that we have a viable strategy to pay off our strategic financing this year," stated Chief Executive Rob Hays.
Overall, AHT's plans to sell properties and refinance loans reflect its commitment to improve its financial standing and address upcoming debt obligations.
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