Ashford Hospitality Trust Announces Progress in Plan to Pay off Strategic Financing with Agreement to Sell The Hilton Boston Back Bay

Ashford Hospitality Trust, Inc. has announced that it has signed a definitive agreement to sell the 390-room Hilton Boston Back Bay (the "Hotel") in Boston, Massachusetts for $171 million ($438,000 per key).  The sale is expected to be completed in March, and is subject to normal closing conditions.  The Company provides no assurances that the sale will be completed on these terms or at all.

For the trailing twelve months ended December 31, 2023, the Hotel's net income was $2.3 million, its net operating income was $14.9 million, and its Hotel EBITDA was $16.7 million.  When adjusted for the Company's anticipated capital expenditures, the sale price represents a 7.3% capitalization rate on 2023 net operating income, or 12.3x 2023 Hotel EBITDA.  Excluding the anticipated capital spend, the sale price represents an 8.7% capitalization rate on 2023 net operating income, or 10.2x 2023 Hotel EBITDA.  The Company expects the net proceeds to be approximately $70 million after repayment of the underlying mortgage debt and closing costs.  The Company expects to use the net proceeds for general corporate purposes including the paydown of its strategic financing.

"We are pleased to announce the planned sale of the Hilton Boston Back Bay for a very attractive value," commented Rob Hays, Ashford Trust's President and Chief Executive Officer. "This sale is an early step toward the recently announced plan to pay off our strategic financing.  We continue to have several assets in the market at various stages of the sales process and look forward to providing more updates in the coming weeks."

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