Ashford Hospitality Trust, Inc. (NYSE: AHT) (“Ashford Trust” or the “Company”) today announced that it has successfully refinanced its mortgage loan for the 701-room Marriott Gateway Crystal City in Arlington, Virginia which had a final maturity date in November 2021. The financing addressed the Company’s only debt maturity in 2021.
The new, non-recourse loan totals $86.0 million and has a three-year initial term with two 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 + 4.65% with a 0.10% LIBOR floor. The initial funding for the loan will be $84.0 million, with the additional $2.0 million available to fund debt service for the first 30 months of the loan, if needed.
“This transaction to refinance one of our largest, high-quality assets addressed our only maturity in 2021,” commented Rob Hays, Ashford Trust’s President and Chief Executive Officer. “With the recent refinancing of our Hilton Boston Back Bay property, our next hard maturity is not until June 2023.”
Robert Douglas, a real estate advisory firm that specializes in providing capital solutions in the hospitality industry, assisted Ashford Trust with this transaction.
Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing predominantly in upper upscale, full-service hotels.