Ashford Hospitality Trust Inc. said it plans to sell 23 select-service hotels as it instead focuses on owning upper upscale, full-service lodging properties.
The hotels being put up for sale have 4,308 rooms and are encumbered by about $190 million of long-term, fixed-rate debt and $187 million of maturing or floating-rate debt, the real estate investment trust said in a statement Friday. The trailing 12-month net operating income for the properties is about $44 million, the Dallas-based company said.
Ashford wants to make its strategy “simpler to understand and more defined for our investors,” Chairman and Chief Executive Officer Monty Bennett said in the statement.
The company said it will take an “opportunistic approach” to selling the rest of its select-service hotels. Such properties lack amenities such as restaurants and have limited service offerings. The company has completed or announced about $1 billion of acquisitions this year as it focuses on higher-end properties.
Ashford focuses on the top 25 U.S. metropolitan areas and operates hotels under brands including Marriott and Hilton. The company said that, following a strategic review, it has no plans for a spinoff of properties similar to the 2013 creation of Ashford Hospitality Prime Inc.
Ashford Hospitality Trust shares rose 1.9 percent to close at $8.46 in New York trading. They have dropped 19 percent this year, compared with a 10 percent decline for the Bloomberg REIT Hotels Index.
(An earlier version of this story corrected the company’s name.)