Ashford Hospitality Trust Extends Major Hotel Loan

Ashford Hospitality Trust is taking steps to buy time and protect liquidity as it navigates a challenging financing environment.

The hotel-focused real estate investment trust has extended a large mortgage loan tied to a portfolio of properties while also pausing payments on its preferred stock.

The loan extension covers the company’s Highland mortgage, which is secured by 18 hotels. To secure the extension, Ashford reduced the loan balance by $10 million, bringing the outstanding amount to roughly $724 million.

After the paydown, the loan equates to about 65 percent of the appraised value of the underlying properties. The revised maturity date now falls in July 2026, giving the company additional runway to manage the asset pool and explore longer-term solutions.

At the same time, Ashford has suspended dividends across all of its preferred stock series. This includes dividends that had already been declared for preferred shareholders with a record date at the end of 2025 and an expected payment date in mid-January 2026.

The company said the decision is intended to preserve cash as it evaluates potential strategic alternatives. While the payments are on hold, management has indicated that the previously declared but unpaid dividends are expected to be paid when it becomes reasonably practical.

Any dividends that remain unpaid will continue to accumulate in line with the terms governing each preferred stock series. Looking ahead, the company plans to reassess the payment of preferred dividends on a quarterly basis, keeping flexibility at the forefront.

Ashford Hospitality Trust invests primarily in upper-upscale, full-service hotels, a segment that has faced ongoing pressure from higher interest rates and tighter access to capital. Against that backdrop, extending debt maturities and conserving liquidity have become central priorities for many lodging REITs.

The company also noted that its future performance remains subject to a range of factors, including its ability to manage existing debt, secure financing, and execute potential transactions. As market conditions evolve, outcomes could differ from current expectations, reflecting the uncertainty that continues to shape the hospitality and real estate landscape.