Ashford Hospitality Trust is likely to hand back the keys on 19 hotels across the country — everything from a Courtyard by Marriott in Plano to a W hotel in Downtown Atlanta.
The loans on the hotels were set to mature in June, the Dallas-based REIT said in a release. However, to get an extension, Ashford needed to show that its hotels were making a certain return for lenders.
None of the loans “achieved the required debt yield tests,” Ashford said, meaning the REIT could not score extensions.
Instead, Ashford had the option to pay down the balance on some of the loans to kick the maturity out.
Ashford, whose chairman is Monty Bennett, agreed to pay down loans totaling $129 million on 15 hotels.
These are the hotels on which Ashford chose to pay down loans:
However, on some properties, the company “elected not to make the required paydowns” in an effort of “protecting stockholder value and liquidity,” the firm said.
For these properties, the most likely scenario is that the lenders will take over the hotels.
Only two of the 19 hotels are in Texas — the Courtyard Plano Legacy Park and the Residence Inn Plano in Plano. Six of the hotels are across California, with the rest in Arizona, New Jersey, North Carolina, Nevada, Pennsylvania, Georgia and Maryland.
Here are the hotels that Ashford chose to hand back the keys on:
Read more
Commercial
Texas
ZaZa hotels for sale across Texas Triangle
Commercial
Texas
Hotel market patchy across Texas Triangle
Development
Texas
Rosewood comes full circle with branded condo in Turtle Creek