Ashford Hospitality Trust, Inc. $(AHT)$ has announced a definitive agreement to sell the 242-room Hilton Houston NASA Clear Lake located in Houston, Texas for $27.0 million. The sale is anticipated to be finalized in June 2025, pending normal closing conditions. The transaction is expected to provide a 3.2% capitalization rate on net operating income, adjusted for anticipated capital expenditures, or 23.6x Hotel EBITDA for the twelve months ending April 30, 2025. Excluding these expenditures, the sale represents a 5.0% capitalization rate or 15.2x Hotel EBITDA. This sale is part of Ashford Trust's strategic efforts to deleverage its Morgan Stanley 17 Pool loan and achieve significant capital expenditure savings. The move aligns with the company's "GRO AHT" initiative, aimed at transforming the company through opportunistic sales. Ashford Hospitality Trust is a real estate investment trust focused on investing in upper upscale, full-service hotels.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.