Dive Brief:
- Ashford Hospitality Trust has signed a definitive agreement to sell the 150-room Residence Inn San Diego Sorrento Mesa for $42 million, the Dallas-based real estate investment trust announced Thursday.
- The sale — which amounts to $280,000 per key — is expected to be completed in October.
- The sale reflects Ashford’s ongoing strategy to “opportunistically deleverage” its portfolio, CEO Stephen Zsigray said in a statement, noting that the transaction will offer the REIT “increased financial flexibility moving forward.”
Dive Insight:
The Residence Inn’s $42 million sale price represents a 5.7% capitalization rate on its net operating income for the 12 months ending July 31, 2025, when adjusted for Ashford’s $16 million capex, the REIT shared. Further terms of the deal were not disclosed.
Ashford Hospitality Trust, which invests primarily in upper upscale, full-service hotels, sold another Residence Inn property in August. The REIT offloaded the Residence Inn Evansville East in Evansville, Indiana, for $6 million the same month it completed its $27 million sale of the Hilton Houston NASA Clear Lake in Texas.
In December, the REIT sold a Courtyard by Marriott property in downtown Boston for $123 million.
Zsigray took over as Ashford Hospitality Trust’s CEO last April.
The REIT’s external manager, Ashford Inc., also controls Braemar Hotels & Resorts, which initiated a process for the sale of its company last month.
