Ashford Hospitality Trust, Inc. announced agreements to sell the Le Pavillon, New Orleans, Embassy Suites by Hilton Austin Arboretum, and Embassy Suites by Hilton Houston Near the Galleria.
Expected to generate approximately $69.5 million in gross proceeds and improve cash flow by over $2 million annually.
The strategic asset sales aim to deleverage Ashford Trust, enhance cash flow, and increase liquidity.
Gross Proceeds
Approximately $69.5 million in aggregate from the sale of three assets.
Cash Flow Improvement
Expected to yield over $2 million annually based on current mortgage interest rates.
Capital Expenditure Savings
Anticipated savings of $14.5 million in future capital expenditures post-sales.
Strategic Importance
Asset sales crucial for deleveraging, enhancing cash flow, and improving liquidity.
- The sales are expected to result in a significant boost to Ashford Trust's cash flow and profitability.
- By reducing future capital expenditure obligations, the company can allocate resources more efficiently for sustained value creation.
Ashford Hospitality Trust's strategic asset sales represent a key step towards deleveraging and enhancing financial performance.