Ashford Hospitality shares surge 11.84% intraday after extending Highland loan and suspending preferred dividends to preserve liquidity.

Ashford Hospitality Trust (AHT) surged 11.84% intraday after announcing the extension of its Highland mortgage loan secured by 18 hotels and the suspension of preferred dividends to preserve liquidity. The loan was reduced by $10 million to $723.6 million, with a maturity date of July 9, 2026, while unpaid dividends will accrue and be evaluated quarterly. The move, aimed at strengthening the company’s financial position amid strategic alternatives, likely reassured investors concerned about liquidity risks, particularly given the company’s distressed Altman Z-Score and high debt levels. Although pre-market trading initially saw a 3.15% decline following the announcement, the intraday rally suggests a shift in market sentiment as the measures were perceived as stabilizing actions to avert further distress.