Ashford Hospitality Trust Inc. has refinanced its mortgage loan secured by the 703-room Marriott Crystal Gateway Hotel in Arlington, VA, which had a final maturity date in November 2026.
The new, non-recourse loan totals $121.5 million and has a three-year initial term with two one-year extension options, subject to the satisfaction of certain conditions. The loan is interest only and provides for a floating interest rate of SOFR +4.86%. The refinancing resulted in approximately $31 million of excess proceeds that will be used to pay down the company’s strategic financing.
The company had previously announced a reduction in the exit fee on its strategic financing from 15% to 12.5% of the original loan balance through Dec. 15, provided that the outstanding loan balance had been reduced to $50 million or less by Nov. 15. The $31 million pay down along with an additional paydown the company intends to make next week, will result in a loan balance below $50 million, triggering the reduced exit fee.
“We are pleased to complete this refinancing of the Marriott Crystal Gateway and generate significant proceeds to go toward paying down our strategic financing,” said Stephen Zsigray, president/CEO, Ashford Trust. “We continue to make meaningful progress in our plan to pay off this financing by the end of this year.”
