Ashford Hospitality Trust announced that it has closed on the refinancing of the mortgage loan for the 673-room Renaissance Hotel in Nashville, Tennessee. The new, non-recourse loan has a balance of $218.1 million.
The new loan has a two-year term with three one-year extension options, subject to certain conditions, with a final maturity date of September 2030. It is interest-only and provides for a floating interest rate of SOFR + 2.26%, a reduction from the previous loan's rate of SOFR + 3.98%.
In conjunction with the debt refinancing, the preferred equity investment on the property was upsized by $53.0 million, and the all-in rate of return on the preferred equity was reduced from 14% to 11.14%. These favorable terms are expected to result in millions of dollars in annual interest expense savings for the company.
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