Ashford Hospitality to divest three properties for $69.5 million in total revenue
Sale Agreements: Ashford Hospitality has signed agreements to sell Le Pavillon in New Orleans, and two Embassy Suites in Austin and Houston, expected to generate approximately $69.5 million in gross proceeds.
Financial Impact: The sales are projected to improve annual cash flow by over $2 million and save $14.5 million in future capital expenditures.
Sale Details: The Le Pavillon is being sold for $42.5 million, while the two Embassy Suites are being sold for a combined $27 million, with expected completion dates in December 2023 and January 2026, respectively.
Valuation Metrics: The sale prices reflect capitalization rates of 2.6% for Le Pavillon and 2.2% for the Embassy Suites when adjusted for anticipated capital expenditures, indicating strong valuations based on net operating income and Hotel EBITDA.
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- Strategic Committee Formation: Ashford Hospitality Trust established a special committee in December 2025 to evaluate strategic alternatives aimed at maximizing shareholder value, highlighting the company's concern over the disparity between stock price and asset value, which may influence future transaction decisions.
- Hotel Sales Progress: The company has sold six hotels, generating approximately $145 million in proceeds and eliminating nearly $50 million in capital expenditures, with plans to sell three more hotels for an expected $194.5 million, further improving cash flow.
- Financial Performance Decline: The company reported a net loss of $78.3 million for Q4, translating to a diluted loss of $12.33 per share, with a total annual net loss of $215 million, indicating increased financial pressure amid high interest rates and weak demand.
- Future Outlook: Management anticipates capital expenditures between $90 million and $110 million for 2026, emphasizing continued asset dispositions to optimize the portfolio, while projecting a gradual recovery in group room revenue over the coming quarters to support overall performance.
- Earnings Announcement Schedule: Ashford Hospitality Trust is set to release its Q4 earnings report on February 25 after market close, with a consensus EPS estimate of -$12.33 and a revenue estimate of $265.9 million, indicating potential downward pressure on the stock due to negative expectations.
- Financial Performance Overview: The latest quant snapshot reveals that Ashford Hospitality Trust is lagging behind strong buy ratings from Amerigo and Allianz, highlighting its relative weakness in the market and potential challenges in attracting investor interest.
- Loan Extension and Dividend Suspension: The company has announced an extension of its mortgage loan and the suspension of preferred dividends, which may undermine investor confidence and exacerbate market concerns regarding its financial health.
- Historical Financial Data: Historical earnings data for Ashford Hospitality Trust indicates a persistent decline in profitability, which could impact its future financing capabilities and investor trust in the company.
- Investigation Launched: Pomerantz LLP is investigating claims on behalf of Ashford Hospitality Trust investors regarding potential securities fraud or unlawful business practices by the company and its executives, indicating serious concerns about corporate governance.
- Dividend Suspension: On January 13, 2026, Ashford announced the suspension of dividends for its Series D, F, G, H, I, J, K, L, and M preferred stock to preserve liquidity, a decision that may undermine investor confidence and future capital inflows.
- Loan Extension: On the same day, Ashford revealed it has extended its Highland mortgage loan secured by 18 hotels, aiming to provide more time for evaluating strategic alternatives, reflecting urgency in financial management.
- Stock Price Decline: Following the announcement, Ashford's stock price fell by $0.35, or 8.1%, closing at $3.97 per share, highlighting market concerns regarding the company's financial health.
- Investigation Launched: The Schall Law Firm is investigating Ashford Hospitality Trust for potential violations of securities laws, focusing on whether the company made false or misleading statements that could harm investors' rights.
- Loan Extension Announcement: On January 13, 2026, Ashford announced the extension of its Highland mortgage loan secured by 18 hotels, indicating the company is evaluating strategic alternatives to preserve liquidity.
- Preferred Dividend Suspension: The company has decided to suspend preferred dividends for Series D, F, G, H, I, J, K, L, and M preferred stockholders as of December 31, 2025, highlighting financial strain.
- Stock Price Decline: Following this news, shares of Ashford Hospitality Trust fell by 8.1% on the same day, reflecting market concerns regarding the company's financial health.
- Investigation Launched: Pomerantz LLP is investigating claims on behalf of Ashford Hospitality Trust investors, focusing on whether the company and its executives engaged in securities fraud or other unlawful practices, which could significantly undermine investor confidence.
- Dividend Suspension: On January 13, 2026, Ashford announced the suspension of dividends for its preferred stock series D, F, G, H, I, J, K, L, and M to preserve liquidity, a move that may negatively impact investor income expectations.
- Stock Price Decline: Following the dividend suspension announcement, Ashford's stock price fell by $0.35, or 8.1%, closing at $3.97 per share on January 13, 2026, reflecting market concerns regarding the company's financial health.
- Legal Context: Pomerantz LLP, a leading firm in securities class action litigation, has been fighting for the rights of victims of securities fraud for over 85 years, and adverse findings from the investigation could expose Ashford to substantial liability for damages.









