Ashford Hospitality Trust to Sell San Diego Residence Inn for $42 Million
The planned divestiture supports the company’s strategy to reduce debt and improve financial flexibility.
September 12, 2025
Ashford Trust Continues Portfolio Optimization with Sale of San Diego Hotel
Ashford Hospitality Trust is moving forward with plans to sell the 150-room Residence Inn San Diego Sorrento Mesa for $42 million. That comes out to $280,000 per room. The transaction is expected to close in October 2025, pending standard closing conditions.
This move is part of Ashford’s broader effort to rebalance its portfolio and strengthen its financial position. The company, which focuses on full-service, upper-upscale hotels, has been actively evaluating asset sales to support deleveraging and create long-term value for shareholders.
The numbers tell a clear story:
- Including $16 million in anticipated capital expenditures, the sale reflects a 5.7% capitalization rate on net operating income.
- That same adjusted sale equates to a 15.3x multiple on Hotel EBITDA for the twelve months ending July 31, 2025.
- Excluding capital costs, the deal improves to a 7.9% cap rate and an 11.1x EBITDA multiple.
Leadership noted that the sale supports their strategy to unlock capital and increase flexibility across the platform. While the deal hasn’t closed yet, it reflects the company’s intent to stay nimble in how it manages its real estate holdings and adjusts to market opportunities.
Ashford Trust continues to take a targeted approach to portfolio management—executing transactions that support operational goals while enhancing financial optionality. This sale is another example of how the company is acting on that strategy.
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