Ashford Hospitality Trust, Inc. announced that it has successfully refinanced its mortgage loan for the 390-room Hilton Boston Back Bay in Boston, Massachusetts which had a final maturity date in November 2022. The Company had only one significant final debt maturity in 2022, but this financing addresses that loan. Furthermore, the Company was able to complete this financing with a best-in-class institutional balance sheet lender.
The new, non-recourse loan totals $98.0 million and has a four-year initial term with a one-year extension option, subject to the satisfaction of certain conditions. The loan is interest only for the initial term with $500,000 quarterly amortization payments during the extension term, and it provides for a floating interest rate of LIBOR + 3.80%.
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“This transaction was a great opportunity for us to refinance and extend an upcoming maturity at attractive pricing for one of our high-quality, transient-focused assets that is well positioned for the economy recovery,” commented Rob Hays, Ashford Trust’s President and Chief Executive Officer. “It is another example of our focus on being proactive in our capital markets activities and balance sheet management.”
Robert Douglas, a real estate advisory firm that specializes in providing capital solutions in the hospitality industry, assisted Ashford Trust with this transaction.
Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing predominantly in upper upscale, full-service hotels.
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