Ashford Hospitality Trust closed on refinancing the mortgage loan for the 673-room Renaissance Hotel in Nashville, Tennessee.
The new, non-recourse loan has a balance of $218.1 million. It has a two-year term with three one-year extension options, subject to the satisfaction of certain conditions, with a final maturity date of September 2030. The loan is interest-only and provides for a floating interest rate of SOFR + 2.26%. The previous loan totaled $267.2 million and provided a floating interest rate of SOFR + 3.98%.
In conjunction with the debt refinancing, the property’s preferred equity investment was upsized by $53.0 million, and the all-in rate of return on the preferred equity was reduced from 14% to 11.14%.
“We are encouraged by the continued improvement of the financing markets, which allowed us to complete this refinancing and will result in millions of dollars in annual interest expense savings,” commented Ashford’s Stephen Zsigray.
Ashford Hospitality Trust is a real estate investment trust (REIT) that invests predominantly in upper-upscale, full-service hotels.
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