Ashford Hospitality Trust has put a dual-brand hotel in Parsippany, New Jersey, up for sale as it looks to divest 18 lodging properties this year.
The Dallas-based real estate investment trust has retained JLL as the exclusive broker for the Hilton Parsippany and the Hampton Inn Parsippany at 1 Hilton Court. The Hilton has 353 rooms and the Hampton Inn has 152 rooms, with the properties on a roughly 16-acre site.
A dual-brand hospitality site is when a single property houses two distinct hotel “flags” — namely brands — under one roof. Operators benefit because they can reduce construction and staffing costs by sharing back-of-house facilities such as laundry rooms and kitchens while appealing to different guest demographics — such as luxury and budget — to maximize revenue.
In late February, Ashford reported that it had deals to sell three hotels and was looking to shed 18 additional lodging properties around the country to deleverage its balance sheet. The REIT reported a net loss of $78.3 million in the fourth quarter, as well as a net loss for the full fiscal year of $215 million. Company officials blamed the losses on hospitality industry pressures, reductions in government spending, higher interest rates and more demands for capital expenditures.
The fee simple interest in the Parsippany property, which totals 505 rooms, is what’s for sale, according to JLL’s website.
Financial reports
The brokerage is touting Parsippany’s quick access to Routes 10 and 46, as well as Interstates 80, 287 and 280. That provides connectivity to New York City, Newark Liberty International Airport and the broader tri-state region, according to JLL.
“This superior transportation infrastructure positions the hotels as ideal bases for business travelers, corporate groups, and leisure guests seeking convenient access to Northern New Jersey’s corporate corridors and Manhattan’s central business district,” JLL said.
Ashford didn’t respond to an email from CoStar News on Friday seeking comment, and neither did JLL.
The Hampton Inn Parsippany has shown signs of gradual financial recovery after a period of underperformance, according to the latest CMBS performance data.
Built in 2008 and last renovated in 2016, the property posted a net operating income, or NOI, of roughly $1.47 million for the most recent trailing 12 months ending September 2025 — an improvement over the prior 12-month period, which recorded NOI of $1.35 million.
Physical occupancy stood at 67.7% as of September 2025, up slightly from 66.4% in the preceding fiscal year, suggesting a slow but steady return toward its contribution-era occupancy level of 73.6%.
The Hilton outlook
The property still falls well short of the strong financial position recorded at the time of loan origination in 2018, when it generated $2.24 million in NOI against a valuation of $25.5 million.
The full-service Hilton Parsippany is facing more significant financial headwinds than its smaller neighbor on the same campus. The property, built in 1981 and renovated in 2015, recorded a most recent NOI of around $1.83 million for the trailing 12 months ending September 2025, according to the most recent CMBS data. That was an improvement from $1.22 million in the prior fiscal year, but a dramatic decline from the $5.22 million NOI reported at the time of loan contribution in 2018.
Physical occupancy remained low at 46.3% as of September 2025, compared with 67.5% at contribution, pointing to persistent demand challenges.
Most concerning for lenders, the property’s debt service coverage ratio sat at 86 cents for every dollar owed for the most recent period, meaning income is not fully covering debt obligations — a condition that has persisted for at least the past two fiscal years.