Ashford Hospitality Trust announced the sale of three upper‑upscale hotels for a combined $69.5 million, a move that signals a decisive push to reduce debt and strengthen liquidity.
The portfolio includes the 226‑room Le Pavillon in New Orleans, sold for $42.5 million, and the 300‑room Embassy Suites by Hilton Austin Arboretum and Embassy Suites by Hilton Houston Near the Galleria, sold together for $27 million. Le Pavillon’s sale price per key of $188,000 reflects a 2.6% cap rate and a 27.2‑times EBITDA multiple based on the trailing‑12‑month period ending September 30, 2025. The combined Embassy Suites transaction trades at a 2.2% cap rate and a 19.5‑times EBITDA multiple, rising to 29.9‑times when adjusted for the $14.5 million of future capital‑expenditure savings.
Ashford expects the transaction to generate more than $2 million in annual cash‑flow improvement and to free up $14.5 million in future capital‑expenditure obligations. The majority of the proceeds will be deployed to retire mortgage debt, which will lift cash flow after debt service and eliminate sizeable future capital‑expenditure commitments.
The sale is part of Ashford’s broader GRO AHT program, launched in late 2024, which targets a $50 million increase in run‑rate EBITDA through cost reductions, revenue maximization, and operational efficiencies. The company’s balance sheet has been under pressure, with net losses reported in Q2 and Q3 2025 and total debt of approximately $2.97 billion as of November 20 2025. By divesting non‑core upper‑upscale assets, Ashford is sharpening its focus on core portfolio performance and capital efficiency.
President and CEO Stephen Zsigray said, “Strategic asset sales will continue to play an important part in our plan to deleverage Ashford Trust while also improving cash flow and liquidity. We believe that the attractive cap rates achieved on these divestitures reflect the value within our portfolio.” He added that the proceeds will be used immediately to retire mortgage debt, improving cash flow after debt service while eliminating sizeable future capital‑expenditure obligations.
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