**Ashford Hospitality Trust Closes $218M Refinancing of Renaissance Hotel in Nashville**
Ashford Hospitality Trust has successfully closed on a refinancing deal for the 673-room Renaissance Hotel located in Nashville, Tennessee.
The new non-recourse loan carries a principal balance of $218.1 million. It features a two-year initial term with three potential one-year extension options, contingent on certain conditions, and a final maturity in September 2030. The loan is structured as interest-only and bears a floating interest rate of SOFR (Secured Overnight Financing Rate) plus 2.26%. This replaces the previous $267.2 million loan, which carried a floating rate of SOFR plus 3.98%.
As part of the refinancing arrangement, the property’s preferred equity investment was increased by $53 million. At the same time, the all-in rate of return on the preferred equity was reduced from 14% to 11.14%, creating additional financial efficiencies for the investment trust.
“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,” said Stephen Zsigray of Ashford Hospitality Trust.
Ashford Hospitality Trust is a real estate investment trust (REIT) focused primarily on investing in upper-upscale, full-service hotels across the United States.
