Ashford Hospitality Trust Plans $42M San Diego Hotel Sale

Ashford Hospitality Trust announced an agreement to sell its 150-room Residence Inn San Diego Sorrento Mesa for $42 million, with the transaction expected to close in October 2025. The sale price reflects a 5.7% capitalization rate on net operating income after anticipated capital expenditures of $16 million, equating to approximately $280,000 per key. This transaction is part of Ashford's broader strategy to deleverage its portfolio and improve financial flexibility, complementing recent sales of other hotel properties including another Residence Inn in Evansville, Indiana, and a Courtyard by Marriott in Boston. Despite these strategic moves, Ashford Hospitality faces significant financial challenges, including high leverage and negative profitability, which impact its stock attractiveness and have led analysts to assign a Hold or Neutral rating. The sale remains subject to normal closing conditions, and the company has not guaranteed completion on the stated terms. Ashford Inc., the REIT’s external manager, also controls Braemar Hotels & Resorts, which is currently seeking a sale of its company.