Ashford Hospitality Trust shares surge 15.94% after-hours after announcing $69.5M hotel sales to delever and boost cash flow.

Ashford Hospitality Trust surged 15.94% in after-hours trading following the announcement of agreements to sell three hotel properties for $69.5 million in aggregate gross proceeds. The sales include Le Pavillon in New Orleans and two Embassy Suites hotels, expected to generate over $2 million in annual cash flow improvement and $14.5 million in future capital expenditure savings. The proceeds will primarily retire mortgage debt, enhancing liquidity and cash flow post-debt service. The transactions, priced at 2.6% cap rate for Le Pavillon and 2.2%–3.3% for the Embassy Suites properties, reflect strategic deleveraging while eliminating significant future capital obligations. CEO Stephen Zsigray emphasized the disciplined approach to sustain value creation, aligning with the market’s positive reaction to the near-term liquidity boost and operational efficiency gains. The sales remain subject to closing conditions, but the immediate cash flow benefits and debt reduction rationale underpinned the sharp after-hours rally.