Ashford Hospitality Trust extended its Highland mortgage loan, securing a new maturity date of July 9, 2026. The extension was accompanied by a $10 million principal paydown, reducing the loan balance to $723.6 million—about 65% of the loan’s appraised value and a key step in tightening the company’s debt profile.
The company also suspended preferred dividends for Series D, F, G, H, I, J, K, L, and M. The suspension covers dividends that had been declared for recordholders as of December 31, 2025, with payments originally scheduled for January 15, 2026. Ashford said it intends to pay the previously declared but unpaid dividends as soon as reasonably practicable, while continuing to evaluate future dividend decisions on a quarterly basis.
Ashford’s decision to extend the loan and pause dividend payouts reflects a deliberate effort to preserve liquidity as it explores strategic alternatives. The company’s financials show negative operating margins and a distressed Altman Z‑Score, underscoring the need for cash conservation. Prior loan extensions—most recently to January 9, 2026 with an option to July 9, 2026—illustrate a pattern of managing near‑term debt maturities while maintaining flexibility for potential transactions.
President and CEO Stephen Zsigray noted that the company’s board has tasked a Special Committee with proactively exploring alternatives to bridge the gap between the value of its underlying portfolio and the market value of its common stock. He emphasized that the firm has been driving EBITDA growth, strategically selling assets, and strengthening its balance sheet, but remains frustrated by the market’s valuation of its assets.
Pre‑market trading on January 13 saw Ashford’s stock fall 3.15% to $4.18, a reaction largely driven by the dividend suspension. Investors viewed the pause as a sign of liquidity stress, while the announcement of strategic alternatives added uncertainty to the company’s near‑term outlook.
The loan extension provides short‑term relief, giving Ashford additional time to manage debt obligations and pursue a potential transaction. However, the dividend suspension signals that cash pressure remains a priority, and preferred shareholders will likely experience delayed payouts. The company’s focus on liquidity and strategic alternatives will shape its financial trajectory in the coming months.
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