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La Posada de Santa Fe Resort & Spa – Image Credit Marriott International
Ashford Hospitality Trust has entered into agreements to sell two hotels and has closed on the sales of two previously announced properties, totaling 790 rooms and gross proceeds of $27 million.
Ashford Hospitality Trust has provided updates on several hotel transactions, including entering into definitive agreements to sell two properties and completing the sales of two previously disclosed hotels. The transactions involve upper-upscale hotels across the company’s portfolio.
The company has agreed to sell the 157-room La Posada de Santa Fe Resort & Spa for $57.5 million, or $364,000 per key. The sale is expected to be completed in March 2026, subject to normal closing conditions, with no assurances that the sale will be completed on these terms or at all. When adjusted for anticipated capital expenditures of $18 million, the sale price represents a 5.9% capitalization rate on net operating income or a multiple of 15.1 times Hotel EBITDA for the twelve months ended December 31, 2025. Excluding the anticipated capital spend, the sale price represents a 7.8% capitalization rate on net operating income or a multiple of 11.5 times Hotel EBITDA for the same period.
Ashford Hospitality Trust has also entered into an agreement to sell the 333-room Hilton St. Petersburg Bayfront for $96 million, or $288,000 per key. This sale is also expected to close in March 2026, subject to normal closing conditions, with no assurances regarding completion on these terms or at all. With anticipated capital expenditures of $23 million, the sale price represents a 5.5% capitalization rate on net operating income or a multiple of 16.1 times Hotel EBITDA for the twelve months ended December 31, 2025. Excluding the anticipated capital spend, the sale price represents a 6.8% capitalization rate on net operating income or a multiple of 13.0 times Hotel EBITDA for the same period.
The company has completed the sales of the Embassy Suites by Hilton Houston Near the Galleria and the Embassy Suites by Hilton Austin Arboretum, representing 300 rooms. These transactions generated $27 million in gross proceeds, or $90,000 per key. When adjusted for anticipated capital expenditures of $14.5 million, the sale price represents a 1.7% capitalization rate on net operating income or a multiple of 34.5 times Hotel EBITDA for the twelve months ended December 31, 2025. Excluding the anticipated capital spend, the sale price represents a 2.7% capitalization rate on net operating income or a multiple of 22.5 times Hotel EBITDA for the same period.
The four transactions are expected to contribute to more than $2 million in annual cash flow improvement and $55.5 million in future capital expenditure savings based on current mortgage interest rates.
