Ashford REIT to Return 19 Hotels To Lenders
Skift Take
- Financial markets experienced declines with the DJIA falling 187 points and the S&P 500 down 13 points, while Nasdaq dropped 18 points. However, lodging stocks showed mixed to higher performance despite the overall market decline.
- Ashford Hospitality Trust (AHT) expects to return 19 hotels to lenders in various cities, including Las Vegas and Atlanta, due to missed repayment deadlines on a $982 million mortgage pool. AHT faced negative equity in the properties and opted not to pay for an extension, potentially impacting the hotel industry's debt situation.
- STR's global "bubble chart" update revealed that 85% of markets saw growth in Revenue Per Available Room (RevPAR) compared to 2019. Occupancy rates played a significant role in driving RevPAR, with coastal countries along the Mediterranean Sea showing strong growth. However, Saudi Arabia experienced the largest decline in RevPAR at 51%.
The DJIA fell 187 points on Friday while Nasdaq was down 18, the S&P 500 fell 13 points and the 10-year treasury yield was up .01 to 4.05%. Lodging stocks were mixed to higher despite the overall market decline. SOND was back up 9%, BHR and AHT were both up 6%.
We expect a lot more jingle mail than just from Park Hotels. Ashford Hospitality Trust provided an update on their mortgage extensions and in that update they disclosed they expect to return 19 hotels to lenders in various cites including Las Vegas and Atlanta. This is part of a $982 million mortgage pool they missed a repayment deadline on last month. AHT said they would have had to pay down $255 million for an extension and spend $80 million in capex through 2025 but the properties already have negative equity. 15 other hotels had mortgage extensions renegotiated with AHT paying down $129 million in debt. Think about all the debt coming due
