The hits keep coming for Monty Bennett’s Ashford Hospitality Trust.
The Dallas-based firm headed by the Dallas Express owner is delisting its stock to save money. Just a day before the delisting announcement, two of the trust’s distressed properties in Plano were scheduled for a foreclosure sale, according to Roddy’s Foreclosure Listing Service.
The two properties are a 152-key Courtyard Dallas Plano in Legacy Park at 6840 Dallas Parkway, and the 126-key Residence Inn Dallas Plano/Legacy at 5001 Whitestone Lane.
The foreclosure sale for both properties was set for April 2 at the Collin County Courthouse.
In 2023, Courtyard Dallas Plano was valued at $9.5 million, and Residence Inn Dallas Plano/Legacy was valued at $7.4 million, according to appraisal district records. Ashford purchased them in 2007.
The properties were the subject of a November lawsuit in which a representative for lenders asked the court to appoint a receiver to oversee seven properties.
The lawsuit alleges that the hotels are at risk of losing value, especially if Marriott terminates franchise agreements with the properties.
The lawsuit came after Ashford defaulted on $150 million in loans last summer; 34 properties failed the debt yield test that followed.
Bennett opted to return 19 of the hotels to lenders, including the two that were foreclosed on; he extended mortgages for a second group of 15 hotels by paying $129 million.
The hotels going back to lenders are in markets “that have experienced significant headwinds throughout their post-pandemic recoveries, and a number of these markets are not forecasted to reach pre-pandemic topline levels until 2025 or 2026,” Ashford said in a statement.
It’s hard to believe that’s the case for Plano, a booming DFW suburb that makes news regularly as a hub for corporate relocations. In 2023 alone, Tapcheck, QuickFee, Fisher Investments, SK Signet America and Westwood Professional Services shared plans or made moves to set up shop in Plano, according to the city’s economic development arm.
The city is already home to companies including Toyota North America, FedEx, JPMorgan Chase & Co., Frito-Lay, PepsiCo, Boeing, Capital One, Ericsson and Samsung Electronics.
Ashford’s decision to delist its stock comes on the heels of a tough year for shareholders.
In 2023, the firm’s net loss attributable to common shareholders was $194 million or $5.61 per share, according to a news release. However, the comparable revenue per available room for all hotels rose almost 10 percent to $130.85.
As of April 3, the firm’s stock was trading at $1.30 a share.
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