Ashford Hospitality Trust Inc. has successfully refinanced a mortgage secured by the Westin Princeton and Renaissance Nashville. The new $240 million loan is interest only at a floating rate of LIBOR + 2.75% and has a two-year initial term with five one-year extension options, subject to the satisfaction of certain conditions.
According to a prepared statement, this mortgage replaced the Aareal Capital Nashville/Princeton loan with an outstanding balance totaling approximately $178 million at a rate of LIBOR + 3.00%, and a final maturity date in June 2022.
“This refinancing is a successful continuation of our focused strategies to benefit from the attractive lending market conditions we have been seeing for hotel assets,” said Douglas A. Kessler, Ashford Trust’s President and Chief Executive Officer. “We are very pleased with this outcome, which enabled us to improve upon the pricing and effectively enhance our maturity schedule, while also realizing significant excess proceeds which we believe will further strengthen our liquidity position.”
According to Kessler, the company will continue to look for additional opportunities “to better our operational performance and increase shareholder value.”