Ashford Hospitality has agreed to sell the Hilton St. Petersburg Bayfront for $96 million, as part of its strategy to deleverage and improve cash flow.
โOpportunistic dispositions will remain a core component of our strategy in 2026 as we believe there are several additional assets in the portfolio that can yield similarly positive impact on leverage,...โ
On March 3, 2026, Brookfield sold a portfolio of five luxury hotels in Florida for $1.5 billion to Host Hotels & Resorts, with a cap rate of 7.0% [wsj.com]. On March 5, 2026, it was reported that Ashford Hospitality Trust defaulted on a $325 million loan secured by eight hotels and engaged a special servicer for resolution [costar.com].
Focus on acquiring distressed assets at a discount, but ensure sufficient liquidity to manage potential downturns.
This sale highlights the ongoing challenges in the hospitality sector, particularly for companies with high leverage. Investors should consider the potential for further asset sales in distressed portfolios and the implications for market pricing and cap rates.
High leverage in Ashford's portfolio
HighConsider reducing exposure to high-leverage hospitality REITs until financial stability improves.
Potential for further asset sales under distressed conditions
MediumMonitor Ashford's financial maneuvers and market conditions closely for signs of further distress.
Rising borrowing costs
HighFocus on acquiring assets with strong cash flow and low refinancing risk.
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