Ashford Trust to sell Boston hotel for $123 million

DALLAS - Ashford Hospitality Trust, Inc. (NYSE: NYSE:AHT), a real estate investment trust (REIT) specializing in upscale full-service hotels, has entered a definitive agreement to sell the Courtyard Boston Downtown for $123 million. The company, currently valued at $51.77 million in market capitalization and identified as undervalued by InvestingPro analysis, maintains a substantial operational presence with trailing twelve-month EBITDA of $230.6 million. The transaction, which is expected to finalize in January 2025, is contingent upon customary closing conditions.

The 315-room property, located in Boston, Massachusetts, is being sold at a rate of $390,500 per room. Taking into account the company's anticipated capital expenditures, the sale price corresponds to a 5.9% capitalization rate based on the hotel's net operating income for the twelve months ending September 30, 2024. Without these expenditures, the capitalization rate stands at 6.9%.

Ashford (NYSE:AINC) Trust's President and CEO, Stephen Zsigray, expressed satisfaction with the deal, noting the attractive capitalization rate and the positive impact the sale will have on the company's financial position. Specifically, Zsigray mentioned the sale would help to deleverage the company's BAML Highland Pool (NASDAQ:POOL) loan and reduce capital expenditure obligations.

The sale is part of Ashford Trust's broader strategy, with several other properties currently on the market at various stages of negotiation. The company's leadership has noted improved sentiment in the transaction market. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 2.52, indicating robust ability to meet short-term obligations. Discover 15+ additional exclusive insights and detailed financial metrics with an InvestingPro subscription.

The financial information provided by Ashford Trust, including the hotel's EBITDA and net operating income, has not been audited or reviewed by independent accountants. These figures are based on unaudited operating data for the year ending September 30, 2024.

This announcement contains forward-looking statements, which are subject to risks and uncertainties. These include but are not limited to, the company's business strategy, expected property sales, projected operating results, and the ability to complete pending transactions. For comprehensive analysis and detailed insights into AHT's financial health and future prospects, access the full Pro Research Report, available exclusively on InvestingPro, covering what really matters for informed investment decisions.

The information in this article is based on a press release statement from Ashford Hospitality Trust, Inc.

In other recent news, Ashford Hospitality Trust has shared insights into its financial results and recent developments during its third-quarter earnings call for 2024. The company's leadership, including Chief Financial Officer Deric Eubanks, President and CEO Stephen Zsigray, and Chris Nixon, Executive Vice President and Head of Asset Management, discussed its performance and made forward-looking statements. However, they acknowledged the inherent risks and uncertainties associated with these projections.

The company remains optimistic about its strategies and future developments, with the leadership team actively engaging in asset management to improve performance. No specific financial misses were mentioned during the call. The earnings call also offered a question-and-answer session, providing further insights into the company's operations and expectations.

These recent developments highlight Ashford Hospitality Trust's ongoing efforts to navigate the uncertainties of the market while managing assets effectively. The company's forward-looking statements are contingent on various factors that could influence the actual outcomes, which are fully disclosed in the company's SEC filings.

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