Dallas-based Ashford Hospitality Prime Inc., a real estate investment trust focused on investing in luxury hotels located in resort and gateway markets, has successfully refinanced the mortgage loan on the Bardessono Hotel & Spa with an existing outstanding balance totaling $40 million. The new loan has a five-year term.
According to a prepared statement, the loan is interest only, provides for a floating interest rate of LIBOR + 2.55% compared to the previous loan that had a floating interest rate of LIBOR + 4.95%. The new loan should result in annual interest savings of approximately $1 million.
“The execution of this refinancing provided us with an attractive opportunity to achieve substantial savings in annual interest expense,” says Richard J. Stockton, Ashford Prime’s President and Chief Executive Officer. “When combining this transaction with our other refinancing in January, year-to-date, we have achieved savings of approximately $13 million in annual interest expense and principal payments resulting in a significant increase in our cash flow. Looking ahead, we remain focused on finding opportunities like these to unlock further value in our portfolio.”