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DALLAS - Ashford Hospitality Trust, Inc. (NYSE:AHT), currently trading at an undervalued level according to InvestingPro analysis, announced Thursday it has signed a definitive agreement to sell the 150-room Residence Inn San Diego Sorrento Mesa for $42 million, or $280,000 per key. The company, with a market capitalization of $38.73 million and total debt of $3.01 billion, continues its strategic asset management efforts.
The transaction is expected to close in October 2025, subject to normal closing conditions, according to a company press release. InvestingPro data reveals the company faces challenges with short-term obligations exceeding liquid assets, making this sale particularly significant for its liquidity position.
When adjusted for Ashford’s anticipated capital expenditures of $16 million, the sale price represents a 5.7% capitalization rate on net operating income, or 15.3 times Hotel EBITDA for the twelve months ended July 31, 2025. Without accounting for the planned capital spending, the sale price reflects a 7.9% capitalization rate or 11.1 times Hotel EBITDA for the same period.
"The planned sale of the Residence Inn San Diego Sorrento Mesa reflects our ongoing strategy to opportunistically deleverage the portfolio while creating value for our shareholders," said Stephen Zsigray, President and Chief Executive Officer, in the statement. "This transaction provides us with increased financial flexibility moving forward." The deleveraging effort comes at a crucial time, as InvestingPro analysis shows the company’s current ratio stands at 0.33, highlighting the importance of improving its financial health. Discover more insights about AHT and 1,400+ other stocks with InvestingPro’s comprehensive research reports.
Ashford Hospitality Trust is a real estate investment trust focused on investing primarily in upper upscale, full-service hotels. The company noted that it cannot provide assurances that the sale will be completed on the stated terms or at all.
In other recent news, Ashford Hospitality Trust has completed the sale of two hotel properties for a total of $33 million. The properties include the Hilton Houston NASA Clear Lake, sold for $27 million, and the Residence Inn Evansville East, sold for $6 million. This transaction aligns with the company’s strategic shifts, as highlighted in their Q2 2025 earnings report. Ashford Hospitality Trust reported a net loss of $39.9 million for the quarter, translating to a loss of $6.88 per diluted share. However, the company reported adjusted funds from operations (FFO) of $0.78 per diluted share. The company has announced new initiatives aimed at achieving $50 million in EBITDA improvements, signaling efforts to enhance financial performance. These developments come as part of Ashford Hospitality Trust’s ongoing strategic initiatives to drive future growth.
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