Dealmaker: Ashford Hospitality Trust Refinances 22 Hotels

Ashford Hospitality Trust, Dallas, refinanced a mortgage secured by 22 hotel properties with an outstanding balance totaling $972 million.

The refinanced mortgage was the Highland Pool loan, scheduled to mature in April 2021. The new loan totals $985 million and could save the real estate investment trust $11 million in annual interest expense.

The new two-year loan came with five one-year extension options. The interest-only financing floats at LIBOR plus 3.20 percent.

The collateral included the Courtyard Boston Downtown, Courtyard Denver, Courtyard Gaithersburg, Courtyard Savannah, Hampton Inn Parsippany, Hilton Parsippany, Hilton Tampa, Hilton Garden Inn Austin, Hilton Garden Inn BWI, Hilton Garden Inn Virginia Beach, Hyatt Windwatch Long Island, Hyatt Savannah, Marriott DFW Airport, Marriott Omaha, Marriott San Antonio, Marriott Sugarland, Renaissance Palm Springs, Ritz-Carlton Atlanta and Residence Inn Tampa, Churchill, Melrose and Silversmith.

Ashford Trust President and CEO Douglas Kessler said the refinancing is part of a strategy to extend the firm’s loan maturity schedule and significantly lower its spread. “Our five most recent financings have capitalized on the attractive lending market and we believe will result in approximately $31 million of combined annual interest savings compared to the prior loan agreements,” he said.

In January Ashford refinanced a $377 million balance mortgage loan, the BAML 1 & 2 Pool loan, scheduled to mature in January 2020. The new loan totals $395 million.

The new mortgage also had a two-year initial term with five one-year extension options. The floating-rate interest-only loan priced at LIBOR plus 3.00 percent. The loan is secured by eight hotels: Embassy Suites Portland, Embassy Suites Crystal City, Embassy Suites Orlando, Embassy Suites Santa Clara, Crowne Plaza Key West, Hilton Costa Mesa, Sheraton Minneapolis and Historic Inns of Annapolis.