DALLAS, Nov. 7, 2024
/PRNewswire/ -- Ashford Hospitality Trust, Inc. (NYSE: AHT)
("Ashford Trust" or the "Company") announced today that it has
successfully refinanced its mortgage loan secured by the 703-room
Marriott Crystal Gateway Hotel located in Arlington, Virginia, which had a final
maturity date in November 2026.
The new, non-recourse loan totals $121.5
million and has a three-year initial term with two one-year
extension options, subject to the satisfaction of certain
conditions. The loan is interest only and provides for a floating
interest rate of SOFR + 4.86%. The refinancing resulted in
approximately $31 million of excess
proceeds that will be used to pay down the Company's strategic
financing.
The Company had previously announced a reduction in the exit fee
on its strategic financing from 15.0% to 12.5% of the original loan
balance through December 15, 2024,
provided that the outstanding loan balance had been reduced to
$50 million or less by November 15, 2024. The $31 million pay down along with an additional
paydown the Company intends to make next week, will result in a
loan balance below $50 million,
triggering the reduced exit fee.
"We are pleased to complete this refinancing of the Marriott
Crystal Gateway and generate significant proceeds to go toward
paying down our strategic financing," commented Stephen Zsigray, Ashford Trust's President and
Chief Executive Officer. "We continue to make meaningful progress
in our plan to pay off this financing by the end of this year."
Ashford Hospitality Trust is a real estate investment trust
(REIT) focused on investing predominantly in upper upscale,
full-service hotels.
Forward-Looking
Statements
Certain statements and assumptions in this press release
contain or are based upon "forward-looking" information and are
being made pursuant to the safe harbor provisions of the federal
securities regulations. Forward-looking statements are generally
identifiable by use of forward-looking terminology such as "may,"
"will," "should," "potential," "intend," "expect," "anticipate,"
"estimate," "approximately," "believe," "could," "project,"
"predict," or other similar words or expressions. Additionally,
statements regarding the following subjects are forward-looking by
their nature: our business and investment strategy; anticipated or
expected purchases, sales or dispositions of assets; our projected
operating results; completion of any pending transactions; our plan
to pay off strategic financing; our ability to restructure existing
property-level indebtedness; our ability to secure additional
financing to enable us to operate our business; our understanding
of our competition; projected capital expenditures; the impact of
technology on our operations and business; the risk that the notice
and noncompliance with NYSE continued listing standards may impact
the Company's results of operations, business operations and
reputation and the trading prices and volatility of the Company's
common stock; and the Company's ability to regain compliance with
the NYSE continued listing standards. Such forward-looking
statements are based on our beliefs, assumptions, and expectations
of our future performance taking into account all information
currently known to us. These beliefs, assumptions, and expectations
can change as a result of many potential events or factors, not all
of which are known to us. If a change occurs, our business,
financial condition, liquidity, results of operations, plans, and
other objectives may vary materially from those expressed in our
forward-looking statements. You should carefully consider this risk
when you make an investment decision concerning our securities.
These and other risk factors are more fully discussed in the
Company's filings with the SEC.
The forward-looking statements included in this press release
are only made as of the date of this press release. Investors
should not place undue reliance on these forward-looking
statements. We will not publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or circumstances, changes in expectations or
otherwise except to the extent required by law.
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SOURCE Ashford Hospitality Trust, Inc.
