Dallas-based Ashford Hospitality Trust Inc. has refinanced a mortgage loan with an existing outstanding balance totaling approximately $972 million. The previous mortgage loan that was refinanced was the Highland Pool loan with a final maturity date in April 2021.
According to a prepared release, the new loan totals $985 million and is expected to result in annual interest savings of approximately $11 million. The new mortgage loan has a two-year initial term and five one-year extension options, subject to the satisfaction of certain conditions. The loan is interest only and provides for a floating interest rate of LIBOR + 3.20%.
According to Douglas A. Kessler, Ashford’s president and CEO, “This refinancing is a successful continuation of our recent debt capital market strategies to create shareholder value by extending our loan maturity schedule as well as significantly lowering our spread, which we expect to result in substantial interest expense savings. 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. We will continue to look for additional opportunities to enhance our operational performance and value.”
The loan is secured by twenty-two hotels: 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, Residence Inn Tampa, Churchill, Melrose and Silversmith.
In other Ashford Trust news, as The REIT Wire recently reported, the REIT just signed a definitive agreement to acquire the project management business of privately-held Remington Holdings LP. According to Monty J. Bennett, Ashford’s chairman and CEO, the proposed acquisition of Remington’s high-margin project management business will immediately add scale, diversification and “an enhanced competitive position in the hospitality industry while also expanding the breadth of services we offer to our managed REITs.”