Ashford Hospitality Trust Subsidiaries Face $325 Million Loan Acceleration After Default Notice

Reuters
Feb 19
Ashford Hospitality Trust Subsidiaries Face $325 Million Loan Acceleration After Default Notice

Ashford Hospitality Trust Inc. said several of its hotel-owning subsidiaries received a notice from Wilmington Trust, as trustee for a JPMorgan Chase CMBS trust, accelerating a $395 million mortgage loan after the borrowers missed required payments and failed to provide a replacement interest rate cap under the loan’s sixth extension. The trustee demanded immediate repayment of the $325 million outstanding principal plus accrued interest, fees and costs; the loan is secured by eight hotels and the notice does not trigger cross-defaults on other company loans.

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