Ashford Hospitality Trust shares surge 20.58% after-hours after announcing $69.5M hotel sales to deleverage, boost cash flow, and retire debt.

Ashford Hospitality Trust (AHT) surged 20.58% in after-hours trading following the announcement of agreements to sell three hotel properties for $69.5 million in aggregate gross proceeds. The sales, including Le Pavillon in New Orleans and two Embassy Suites, are projected to generate over $2 million in annual cash flow improvement and $14.5 million in future capital expenditure savings. The company emphasized that proceeds will primarily retire mortgage debt, enhancing liquidity and deleveraging its balance sheet. The CEO highlighted the strategic importance of these divestitures in creating long-term value, citing attractive cap rates (2.6% for Le Pavillon and 2.2%-3.3% for the Embassy Suites) as indicative of portfolio strength. The transaction terms and expected financial benefits align with investor optimism about improved operational efficiency and reduced debt obligations, directly supporting the sharp post-announcement price rise.