Ashford Hospitality Trust to Sell Three Hotels

The sales are expected to cut capital expenditures by $14.5 million and boost annual cash flow by over $2 million.

November 21, 2025

Strategic Portfolio Realignment Underway

Ashford Hospitality Trust is making a clear move to streamline its portfolio and boost financial flexibility. The company just signed agreements to sell three hotel properties—one in New Orleans, two in Texas—for a combined $69.5 million in gross proceeds.

The largest of the three, Le Pavillon in New Orleans, is a 226-room Tribute Portfolio Hotel. It’s being sold for $42.5 million, or $188,000 per room. That deal is expected to close in December, pending standard closing conditions. Based on performance through Q3 2025, that price implies a 2.6% cap rate and a 27.2x EBITDA multiple.

The other two properties—Embassy Suites by Hilton in both Austin Arboretum and Houston near the Galleria—are being sold as a pair for $27 million. That works out to $90,000 per room across 300 rooms. This sale is expected to close in January 2026.

Financial Impact and Forward Strategy

Together, these sales are more than just transactions. They’re part of a broader strategy to reduce debt, improve operating cash flow, and avoid future capital obligations. The company expects to free up $14.5 million in capital expenditures while also improving annual cash flow by more than $2 million, based on today’s mortgage rates.

Ashford plans to use most of the proceeds to retire mortgage debt. That’s where the cash flow improvement comes in—less debt service and fewer future renovations to fund. In other words, more flexibility and more breathing room.

The sales aren’t final yet, and there are no guarantees they’ll close as planned. But the company is positioning itself to act decisively—lightening its capital load while reinforcing its balance sheet.

With market dynamics continuing to evolve, Ashford’s latest move signals a deliberate focus on operational efficiency and long-term value.