Ashford’s $155M Hotel Sale Shows Debt Is Still Calling the Shots

Ashford Hospitality Trust has agreed to sell six hotels for a combined $154.6 million as it works to reduce debt and improve liquidity.

The company announced the planned sales with its first-quarter 2026 results on May 11, 2026. The hotels are located in New York, Indiana, California, Illinois, Texas, and Florida.

The properties include Hyatt Regency Long Island, Sheraton Indianapolis City Centre, Sheraton Mission Valley San Diego, Silversmith Hotel Chicago Downtown, Lakeway Resort & Spa, and Hilton Garden Inn Jacksonville JTB/Deerwood Park. Ashford said the sale price equals about $108,000 per room. The company also expects the sales to reduce future renovation and capital spending needs by $105.7 million.

Hotel sales are now a core part of the strategy

The new agreements follow several completed sales earlier this year. In the first quarter, Ashford sold five hotels for $238.5 million in gross proceeds. After the quarter ended, it sold two more hotels for $58 million. The company has already closed seven hotel sales in 2026 and now has agreements to sell six more.

CEO Stephen Zsigray said the company has seen strong buyer interest across multiple assets. He also said strategic divestitures will remain important for improving leverage, liquidity, and cash flow. In simple terms, Ashford is using hotel sales to raise cash, lower financial pressure, and avoid spending more money on properties that may need major upgrades.

Debt and high borrowing costs are driving the move

Ashford’s financial position explains why the company is moving quickly. At the end of March 2026, the REIT had about $2.4 billion in total loans, with a blended average interest rate of 7.9 percent. Most of that debt was floating-rate, which means the company remains exposed to high interest costs.

Hotels are expensive assets to own. They need regular spending on rooms, lobbies, restaurants, technology, and brand standards. For a company with heavy debt, selling some hotels can be more practical than paying for renovations or refinancing loans at high rates.

The latest results show continued pressure

Ashford reported $267.7 million in revenue for the first quarter of 2026, but it still posted a net loss attributable to the company of $63.8 million. The company also recorded $112.6 million in impairment charges on nine hotel properties, meaning it reduced the accounting value of those assets.

The company ended the quarter with $221 million in cash, cash equivalents, and restricted cash. That gives Ashford some short-term flexibility, but the large debt load remains a major issue.

This also connects with a wider trend in the US hotel market, where demand may be improving but not every owner is benefiting equally. For example, Marriott raised its 2026 outlook after stronger US and Canada RevPAR growth, while Choice Hotels faced weaker room revenue despite a stronger broader market.

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