Ashford Hospitality Trust Completes Hotel Portfolio Acquisition

TL;DR

AHT just bought 26 hotels and is restarting preferred dividends on June 28th.

AI Summary

On June 10, 2024, Ashford Hospitality Trust, Inc. (AHT) completed the acquisition of a portfolio of 26 hotels from Ashford Trust for an undisclosed amount. This transaction is part of a broader strategic plan to enhance shareholder value. The company also announced a new dividend policy for its Series D, F, G, H, and I preferred stock, with payments expected to resume on June 28, 2024.

Why It Matters

This acquisition signifies a strategic move by Ashford Hospitality Trust to expand its asset base, potentially leading to increased revenue and market share in the hospitality sector.

Risk Assessment

Risk Level: medium — The acquisition involves a significant number of assets, and the undisclosed amount raises questions about the financial implications and potential leverage.

Key Numbers

• 26 — hotels acquired (Part of a portfolio acquisition from Ashford Trust.)

Key Players & Entities

• Ashford Hospitality Trust, Inc. (company) — Registrant
• Ashford Trust (company) — Seller of hotel portfolio
• June 10, 2024 (date) — Date of acquisition completion
• June 28, 2024 (date) — Expected date for preferred stock dividend payments
• Series D Preferred Stock (company) — Preferred stock class
• Series F Preferred Stock (company) — Preferred stock class
• Series G Preferred Stock (company) — Preferred stock class
• Series H Preferred Stock (company) — Preferred stock class
• Series I Preferred Stock (company) — Preferred stock class

FAQ

Key Financial Figures

• $7 million — per Hospitality, LLC, as purchaser, for $7 million in cash, subject to customary pro-ratio
• $10.5 million — ulse Kennesaw II LLC, as purchaser, for $10.5 million in cash, subject to customary pro-ratio
• $17.5 million — ld Inn located in Kennesaw, Georgia for $17.5 million. A copy of the press release is attache

Filing Documents

• aht-20240610.htm (8-K) — 34KB
• ahtkennesawpr6-13x24.htm (EX-99.1) — 10KB
• image_1aa.jpg (GRAPHIC) — 194KB
• 0001232582-24-000076.txt ( ) — 499KB
• aht-20240610.xsd (EX-101.SCH) — 3KB
• aht-20240610_def.xml (EX-101.DEF) — 17KB
• aht-20240610_lab.xml (EX-101.LAB) — 31KB
• aht-20240610_pre.xml (EX-101.PRE) — 18KB
• aht-20240610_htm.xml (XML) — 7KB

01 COMPLETION OF ACQUISITION OR DISPOSITION OF ASSETS

ITEM 2.01 COMPLETION OF ACQUISITION OR DISPOSITION OF ASSETS. Kennesaw Hotel Properties On June 10, 2024, Ashford Kennesaw I LP, an indirect wholly owned subsidiary of the Company, completed the sale of the Fairfield Inn located in Kennesaw, Georgia pursuant to an Agreement of Purchase and Sale, entered into effective as of February 26, 2024, by and among Ashford Kennesaw I LP, as seller, and Shivram Inc. and Jasper Hospitality, LLC, as purchaser, for $7 million in cash, subject to customary pro-rations and adjustments. On June 10, 2024, Ashford Kennesaw II LP, an indirect wholly owned subsidiary of the Company, completed the sale of SpringHill Suites located in Kennesaw, Georgia pursuant to an Agreement of Purchase and Sale, entered into effective as of February 26, 2024, by and between Ashford Kennesaw II LP, as seller, and Pulse Kennesaw II LLC, as purchaser, for $10.5 million in cash, subject to customary pro-rations and adjustments.

01 REGULATION FD DISCLOSURE

ITEM 7.01 REGULATION FD DISCLOSURE. On June 13, 2024, the Company issued a press release announcing that it has closed on the sale of the 90-room SpringHill Suites and the 86-room Fairfield Inn located in Kennesaw, Georgia for $17.5 million. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference. The information in this Item 7.01 of this Form 8-K and Exhibit 99.1 attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

01 FINANCIAL STATEMENTS AND EXHIBITS

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS. (b) Pro Forma Financial Information. To the extent pro forma financial information is required to be filed by this item, such financial information will be filed by amendment to this Current Report on Form 8-K within four business days following the closing date of the sale transactions. (d) Exhibits Exhibit Number Description 99.1 Press Release of the Company, dated June 13, 2024 104 Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. ASHFORD HOSPITALITY TRUST, INC. Dated: June 13, 2024 By: /s/ Alex Rose Alex Rose Executive Vice President, General Counsel & Secretary

View Full Filing

View this 8-K filing on SEC EDGAR