Ashford Hospitality Trust Secures $218M Refinancing for Nashville Hotel, Enhancing Financial Stability
- Ashford Hospitality Trust refinanced the Renaissance Hotel mortgage for $218.1 million, improving financial conditions and reducing interest costs.
- The deal includes a two-year term with three one-year extensions, maturing in September 2030.
- The company aims for long-term sustainability while optimizing its portfolio in a competitive hospitality market.
Ashford Hospitality Trust Secures Favorable Refinancing for Nashville Hotel
On September 15, 2025, Ashford Hospitality Trust, Inc. announces the successful refinancing of its mortgage loan for the Renaissance Hotel, a prominent 673-room property located in Nashville, Tennessee. The new financing arrangement includes a non-recourse loan amounting to $218.1 million, structured with a two-year term and the option for three one-year extensions, ultimately maturing in September 2030. The restructuring aims to enhance the company’s financial standing, featuring an interest-only repayment plan with a floating interest rate set at SOFR + 2.26%. This marks a considerable improvement over the previous loan of $267.2 million, which carried a higher floating interest rate of SOFR + 3.98%.
The refinancing also incorporates an upsized preferred equity investment of $53.0 million, which effectively decreases the all-in rate of return on this equity from 14% to 11.14%. Stephen Zsigray, Ashford Trust's President and CEO, expresses optimism regarding the favorable financing market conditions that enabled this advantageous refinancing deal. He emphasizes the potential for substantial annual interest expense savings, which could bolster the company’s profitability and operational efficiencies. This strategic move reflects Ashford Trust's commitment to maintaining a strong financial profile while navigating the complexities of the hospitality market.
Overall, this refinancing transaction illustrates Ashford Trust's proactive approach to securing beneficial financing terms in a competitive and evolving market environment. By reducing its interest obligations and improving equity returns, the company positions itself favorably for future growth and stability. The move not only underscores Ashford Trust's strategic foresight but also enhances its capability to respond to market changes, further solidifying its presence in the upper upscale, full-service hotel sector.
In addition to the refinancing, Ashford Hospitality Trust continues to explore opportunities that align with its operational performance and growth strategy. The company remains focused on optimizing its portfolio while navigating uncertainties that could affect future results, demonstrating a commitment to long-term sustainability in the hospitality industry. As the market evolves, Ashford Trust’s efforts to secure favorable financing will likely play a critical role in its ongoing success and adaptability.