The Ashford Hospitality Trust may return the keys to 19 hotels across the country — from the Courtyard in Plano to the W in downtown Atlanta.
The hotel’s loan will mature in June, the Dallas-based real estate investment trust said in a release. However, in order to get the extension, Ashford needs to prove that its hotels are generating some return for their lenders.
None of the loans “met the required debt yield test,” Ashford said, meaning the REIT couldn’t get the deferment.
Instead, Ashford has the option to repay part of the loan’s balance to cancel maturity.
Ashford chairman Monty Bennett agreed to repay loans totaling $129 million across 15 hotels.
Here are the hotels Ashford chose to repay the loan:
However, the company said it had “chosen not to make required payments on certain properties” in order to “protect shareholder value and liquidity”.
For these properties, the most likely scenario is that the lender will take over the hotel.
Only two of the 19 hotels are located in Texas: Courtyard by Marriott Plano Heritage Park and Residence Inn Plano. Six of the hotels are located across California, with the remainder located in Arizona, New Jersey, North Carolina, Nevada, Pennsylvania, Georgia and Maryland.
Here are the hotels Ashford has chosen to return the keys to: