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ASHFORD HOSPITALITY TRUST ANNOUNCES EXTENSION OF HIGHLAND LOAN AND SUSPENSION OF PREFERRED DIVIDENDS

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DALLAS, Jan. 13, 2026 /PRNewswire/ -- Ashford Hospitality Trust, Inc. (NYSE: AHT) (the "Company") to...

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AI Summary

Ashford Hospitality Trust (AHT) extended its Highland mortgage loan by reducing the balance by $10 million while suspending preferred dividends to strengthen liquidity. This strategic move enables the company to explore future alternatives as it aims to stabilize its operations ahead of the 2026 loan maturity.

Sentiment Rationale

Suspending preferred dividends usually signals distress; may deter income-focused investors. Historical patterns suggest similar actions often lead to short-term declines.

Trading Thesis

AHT is positioned for short-term volatility but may stabilize post-2026 loan maturity.

Market-Moving

  • AHT's loan extension signifies management’s proactive approach to maintain liquidity.
  • Suspension of preferred dividends reflects a focus on long-term financial health.
  • The property-value proximity to loan balance could indicate future refinancing options.
  • Quarterly evaluations on dividends may impact investor sentiment and stock price.

Key Facts

  • AHT extended its Highland mortgage loan by paying down $10 million.
  • Loan balance now stands at $723.6 million, 65% of appraised value.
  • Preferred dividends are suspended to preserve liquidity amid evaluations.
  • Unpaid dividends will accrue but will be paid as feasible.
  • Next dividend evaluations will occur quarterly amid strategic alternatives.

Companies Mentioned

  • Ashford Hospitality Trust (AHT): Strategic liquidity measures may affect operational stability and investor confidence.

Corporate Developments

This news fits into the 'Corporate Developments' category as it involves significant financial restructuring within AHT, impacting liquidity and future dividend policy.

Ashford Hospitality Trust (NYSE: AHT) Extends Highland Loan and Suspends Preferred Dividends

Ashford Hospitality Trust, Inc. (NYSE: AHT) has announced a significant financial update. The company has successfully extended its Highland mortgage loan, which is secured by 18 hotels. As part of this extension, Ashford Hospitality Trust reduced the outstanding balance of the loan by $10 million, bringing it down to $723.6 million, equating to approximately 65% of the appraised value. The loan now has a final maturity date set for July 9, 2026.

Suspension of Preferred Dividends

In efforts to strengthen its liquidity position while considering strategic alternatives, Ashford Hospitality Trust has suspended its preferred dividends. This suspension includes previously declared dividends for holders of the Series D, F, G, H, I, J, K, L, and M preferred stock as of December 31, 2025, which are due to be paid on January 15, 2026. The Company has committed to settling these unpaid dividends as soon as feasible.

Future Plans for Dividends

Despite the current suspension, Ashford Hospitality Trust indicates its intention to assess potential future dividends on a quarterly basis. Accrued but unpaid dividends will continue to accrue in accordance with the terms outlined in the governing documents of each preferred stock series.

About Ashford Hospitality Trust

Ashford Hospitality Trust operates as a real estate investment trust (REIT) with a focus on investing primarily in upper upscale, full-service hotels. The Company's strategic actions aim to enhance its overall financial health while navigating current market conditions.

Forward-Looking Statements

The statements made during this announcement include forward-looking information as defined by federal securities regulations. These statements, which reflect Ashford Hospitality Trust’s beliefs and expectations regarding future performance, incorporate varying terms like "may," "expect," "intend," and "believe." Potential investors are encouraged to consider these elements carefully before making investment decisions associated with AHT.

Forward-looking statements in this release are made as of the date stated. Ashford Hospitality Trust will not update or revise these statements unless mandated by law. Investors should review the company's filings with the Securities and Exchange Commission (SEC) for a comprehensive discussion of risk factors impacting its operations and future performance.

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