Ashford Hospitality Trust, Inc. has signed definitive agreements to sell the Le Pavillon, New Orleans, a Tribute Portfolio hotel, the Embassy Suites by Hilton Austin Arboretum, and the Embassy Suites by Hilton Houston Near the Galleria. The sales are projected to yield roughly $69.5 million in total gross proceeds. Given current mortgage interest rates, Ashford Trust anticipates over $2 million in annual cash-flow benefits and about $14.5 million in future capital expenditure savings once the transactions are completed.
Stephen Zsigray, President and Chief Executive Officer, said, “Strategic asset sales will continue to play an important part in our plan to deleverage Ashford Trust while also improving cash flow and liquidity. We believe that the attractive cap rates achieved on these divestitures reflect the value within our portfolio.”
Le Pavillon
Ashford has entered into an agreement to sell the 226-room Le Pavillon for $42.5 million, or approximately $188,000 per key. The transaction is expected to close in December 2025, subject to customary closing conditions, and Ashford makes no assurances that the sale will be completed on these terms or at all. The agreed-upon price reflects a 2.6% capitalization rate on net operating income, or 27.2 times Hotel EBITDA for the twelve months ended September 30, 2025.
Embassy Suites by Hilton Austin and Embassy Suites by Hilton Houston
The agreement covering the 300 rooms across these two Embassy Suites properties sets a sale price of $27.0 million, or roughly $90,000 per key. The transaction is anticipated to close in January 2026. Adjusted for the expected $14.5 million in capital expenditures, the pricing represents a 2.2% capitalization rate on net operating income, or 29.9 times Hotel EBITDA for the twelve months ended September 30, 2025. Without factoring in the anticipated capital spend, the combined pricing represents a 3.3% capitalization rate or 19.5 times Hotel EBITDA for the same period.
Ashford Hospitality Trust is a real estate investment trust (REIT) specializing in upper-upscale, full-service hotel investments.
