Ashford Hospitality to divest three properties for $69.5 million in total revenue
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 20 2025
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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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About AHT
Ashford Hospitality Trust, Inc. is a real estate investment trust (REIT). The Company's portfolio consists of upscale hotels and upper upscale full-service hotels. The Company owns its lodging investments and conducts its business through Ashford Hospitality Limited Partnership (Ashford Trust OP). Its hotel properties are primarily branded under the brands of Hilton, Hyatt, Marriott and Intercontinental Hotel Group. The Company operates through one segment: direct hotel investments. It has a portfolio consisting of approximately 68 consolidated operating hotel properties, which represent over 16,736 total rooms. It owns a 15.1 % ownership in OpenKey, Inc. It owns four consolidated operating hotel properties, which represent 405 total rooms owned through a 99.0% ownership interest in Stirling REIT OP, LP (Stirling OP). The Company also has an investment in an entity that owns the Meritage Resort and Spa and the Grand Reserve at the Meritage (the Meritage Investment) in Napa, California.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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