Ashford Hospitality Trust Lands $580M Refi for Beverly Hills and Coral Gables Hotels

After a brush with special serving, Ashford Hospitality Trust has nabbed a $580 million debt package from Bank of American and Sculptor Capital Management to refinance 16 hotels — together valued at $861 million — which include the Hyatt Regency Coral Gables and the Beverly Hills Marriott, property records show. 

The nonrecourse financing has a two-year term with three one-year extension options. The loans have a floating interest rate of SOFR plus 4.37 percent, according to the Dallas-based trust.

The previous four loans had a combined outstanding loan balance of $439 million, which were set to mature in the first half of 2025, according to a spokesperson for Ashford Hospitality Trust. 

About $72 million of the excess proceeds from the new debt paid off the remaining balance on Ashford Hospitality Trust’s strategic financing, including the exit fee, which was set to mature in January 2026. Remaining proceeds were used to fund transaction costs and reserves for future capital expenditures.

“With the closing of this refinancing along with the full payoff of our strategic financing, we’ve addressed several pending loan maturities and eliminated all corporate-level debt,” Stephen Zsigray, Ashford Hospitality Trust’s president and CEO, said in a statement. 

The $580 million package comes as Ashford also extended its mortgage for the Hotel Indigo Atlanta Midtown, which has a balance of $12 million, by 14 months. The REIT also struck a forbearance agreement for a $410 million loan, backing 17 hotels, after it went to special serving in September, per the Ashford representative and CoStar. 

The newly refinanced California and Florida properties boast the highest valuation of the portfolio, with Beverly Hills Marriott accounting for $214 million and Hyatt Regency Coral Gales accounting for $168 million of the portfolio’s $861 million value, according to mortgage documents. 

The 12-story Beverly Hills hotel at 1150 South Beverly Drive houses 260 rooms. The 325,353-square-foot Coral Gables hotel at 50 Alhambra Plaza features 242 rooms. Ashford’s Florida portfolio also includes Sea World in Orlando. 

Update: The article was updated to clarify how proceeds from the $580 million debt package were used.

Julia Echikson can be reached at jechikson@commercialobserver.com.