Ashford Hospitality Trust Moves to Sell Residence Inn Property

Author: Hannah Lewis Updated: 09-11-2025 04:41 PM

Ashford Hospitality Trust Makes Strategic Move

Ashford Hospitality Trust, Inc. (NYSE: AHT) has taken a significant step by signing a definitive agreement to sell its 150-room Residence Inn located in San Diego for $42 million, equating to $280,000 per key. This sale is a part of the company’s strategic efforts to manage its portfolio effectively and enhance financial flexibility.

Financial Details of the Sale

The anticipated completion of this transaction is set for a later date, contingent on normal closing conditions. It is important to note that the company's planned capital expenditures are projected to be around $16 million, which would bring the effective sale price down to a capitalization rate of 5.7% based on its net operating income. When evaluated without factoring in these anticipated expenditures, the capitalization rate rises to 7.9%, reflecting the financial intricacies involved in hotel sales.

CEO's Insights on the Transaction

Stephen Zsigray, President and Chief Executive Officer of Ashford Trust, expressed his thoughts on this strategic decision. He remarked, "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." This sentiment highlights the company's commitment to maintaining a robust financial posture as it navigates the hospitality landscape.

Overview of Ashford Hospitality Trust

Ashford Hospitality Trust specializes in investing in upper upscale, full-service hotels, positioning itself as a competitive player in the real estate investment trust (REIT) sector. This move to sell the Residence Inn aligns with its broader strategy to optimize asset management and enhance overall portfolio quality.

Market Position and Future Outlook

In the competitive hotel market, Ashford Trust has positioned itself with a forward-looking investment strategy. By focusing on increased financial flexibility through asset sales, it aims to strengthen its operational capabilities and market presence effectively. As the company paves its path forward, this capital allocation demonstrates a proactive approach to managing its resources.

Frequently Asked Questions

What is the key purpose of the sale of the Residence Inn San Diego Sorrento Mesa?

The sale is part of Ashford Trust's strategy to deleverage its portfolio and create enhanced value for shareholders.

How much is the Residence Inn being sold for?

The property is being sold for $42 million, or $280,000 per key.

What is the expected completion date for the sale?

The transaction is expected to be completed later, subject to customary closing conditions.

What is the impact of capital expenditures on the sale?

When accounting for anticipated capital expenditures of $16 million, the effective capitalization rate adjusts to 5.7% based on net operating income.

What type of hotels does Ashford Hospitality Trust invest in?

Ashford Hospitality Trust predominantly invests in upper upscale, full-service hotels.

About The Author

Hi there, I'm Hannah Lewis, a writer and financial specialist of 36 years old committed to making money understandable and approachable to everyone. Years of working in the field have given me a thorough grasp of market trends, investment techniques, and economic fundamentals. My objective is to enable people, by means of understandable, useful guidance, to take charge of their financial destiny.

I have written many articles for financial blogs over my career that simplify difficult financial ideas into understandable insights. Being financially literate is a critical ability, and I am passionate about enabling people to confidently manage their financial lives. Regardless of your level of experience, my work will help you at every stage of the investment process. I appreciate being allowed to share in your success and financial expansion.

Contact Hannah Lewis privately here. Or send an email with ATTN: Hannah Lewis as the subject to contact@investorshangout.com.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.