Dallas-based Ashford Hospitality Trust Inc. has secured a $25 million property-level mortgage financing for the recently-acquired La Posada de Santa Fe in Santa Fe, New Mexico.
The loan, effectively representing 50% of the asset purchase price, has a two-year initial term with three one-year extension options subject to the satisfaction of certain conditions. The loan is interest only with a rate of LIBOR + 2.55%.
According to a prepared statement, this hotel is the second investment to benefit from the previously announced Enhanced Return Funding Program with Ashford Inc.
“We are pleased to take advantage of the current favorable conditions in the lending markets to secure this financing of the La Posada de Santa Fe on attractive terms,” said Douglas A. Kessler, Ashford Trust’s President and Chief Executive Officer. “We are optimistic that we are well positioned for superior returns on this investment given the combination of the ERFP benefits and the expected significant value-add operational synergies. As we continue to seek growth in the performance of our portfolio, we will remain focused and diligent in our efforts to maximize shareholder value utilizing the ERFP for future investments.”
Ashford Hospitality Trust is a real estate investment trust focused on investing opportunistically in the hospitality industry in upper upscale, full-service hotels.