Ashford Trust sells Georgia hotel, transfers loan to receiver

DALLAS – Ashford Hospitality Trust, Inc. (NYSE: ), a real estate investment trust focused on upscale, full-service hotels, has completed the sale of the Hampton Inn Lawrenceville, Georgia, for $8.1 million. The transaction, which carries a capitalization rate of 6.0% based on net operating income for the trailing 12 months to March 2024, is part of the company's broader strategy to reduce debt.

Proceeds from the sale are earmarked for general corporate purposes, including the reduction of strategic financing debt. Ashford (NYSE:) Trust President and CEO Rob Hays said the move is consistent with the company's ongoing deleveraging plan, which has made significant progress. He expressed satisfaction with the transfer of KEYS A&B's loan pool assets to a court-appointed receiver as a step in the company's efforts to manage its debt.

The $180.7 million KEYS A Loan Pool (NASDAQ: ) and the $174.4 million KEYS B Loan Pool have been transferred as part of a process with the servicer for the purpose of effecting a mutually consensual foreclosure or lien-in-lieu Deed of foreclosure. This process will take place from July 2023.

Hayes also noted that Ashford Trust currently has several other properties on the market at various stages of the sales process and expects to provide an update in the near future.

The company's actions are part of its efforts to address challenges and strategically position itself for the future. However, the Ashford Trust's forward-looking statements, including forward-looking statements regarding its strategies and future plans, are subject to risks and uncertainties that could cause actual results to differ from expectations.

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Investors are advised not to place undue reliance on these statements, which are based on current beliefs, assumptions and expectations and may change due to potential events or factors that may arise. This article is based on a press release from Ashford Hospitality Trust, Inc.

Investment Professional Insights

Ashford Hospitality Trust's financial health and stock performance remain a focus for investors amid a strategic move to reduce debt through property sales. Ashford Hospitality Trust has a market capitalization of $47.65 million, reflecting the market's valuation of the company, according to immediate data from InvestingPro. Despite a challenging period, the company has managed to maintain positive revenue growth of 10.19% in the trailing 12 months to Q1 2023, indicating some resilience in its operations.

However, the company's share price has been under pressure, trading near its 52-week low, with large price fluctuations, a 1-week total return of -8.4%, and a 1-year total return of -64.71%. These figures highlight the challenges faced by Ashford Hospitality Trust, particularly in the highly competitive and ever-changing hospitality industry.

InvestingPro Tips shows that Ashford Hospitality Trust currently trades at a low EBITDA valuation multiple and a low revenue valuation multiple, which may tempt investors looking for potentially undervalued shares. Still, analysts expect sales to decline this year and the company is not expected to make a profit this year. For investors looking for a deeper understanding of Ashford Hospitality Trust's financial health and stock potential, InvestingPro provides additional insights, with an additional 15 InvestingPro Tips for investors who want to explore further.For these insights, visit: and consider using the coupon code PRONEWS24 Annual or biennial Pro and Pro+ subscriptions receive an additional 10% discount.

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