Ashford Hospitality Trust, a real estate investment trust with 72 hotels totaling more than 17,000 rooms in its portfolio, has refinanced a $218.1 million mortgage loan backing an upscale hotel in Nashville, Tennessee.
The refinancing of the mortgage loan for the Renaissance Nashville Hotel, an upscale hotel with more than 670 rooms at 611 Commerce St. in Nashville, comes months after the Dallas-based REIT extended another loan that financially backed its most valuable hotels. This latest non-recourse loan with a balance of $218.1 million has a two-year term with three one-year extension options with a final maturity date of September 2030.
Ashford Hospitality President and CEO Stephen Zsigray said in a statement that the REIT was "encouraged by the continued improvement of the financing markets" that allowed for this refinancing resulting in "millions of dollars in annual interest expense savings."
Zsigray said the completion of the refinancing deal demonstrates the REIT's ability to secure financing on favorable terms in the market.
The REIT signed an agreement earlier this month to sell the 150-room Residence Inn San Diego Sorrento Mesa in California for $42 million. The deal is expected to close in October, Ashford Hospitality said in a statement.
For the Nashville refinancing deal, the mortgage loan is interest only. The prior loan totaled $267.2 million, the statement said.
Ashford Hospitality has been selling non-core hotel properties from its real estate portfolio to focus on upscale full-service hotels. Last month, the REIT announced it sold two of its non-core hotel properties in Texas and Indiana to help deleverage its portfolio.