Truist Reviews Pebblebrook Markets
Skift Take
- DJIA rose 210 points, Nasdaq up 25, S&P 500 up 11; 10-year treasury yield retreated to 4.01%.
- RW Baird supports Ashford Hospitality Trust's decision to return hotels to lenders, citing improved cash flow prospects.
The DJIA rose 210 points, Nasdaq was up 25, the S&P 500 was up 11 points while the 10-year treasury yield retreated .04 to close to 4.01%. Lodging stocks were higher but most were up 2% to 3%. VCSA was the biggest mover, up 5% today.
RW Baird issued a report on the Ashford Hospitality Trust announcement they were going to return 19 hotels (3,583 rooms) with $570 million of debt to their lenders. Baird called this not totally surprising and the right move. The three KEYS pools had been performing well below a 1.0x DSCR and AHT’s near-term cash flow profile should improve. Baird said AHT’s actions highlight the challenges that borrowers are facing today, particularly as debt maturities approach. The hand back the keys vs. pay down decision is more difficult for higher-levered, floating-rate loans, according to the report.
Truist formally and informally visited several Pebblebrook Hotel T
