Ashford Hospitality Trust has agreed to sell Le Pavillon hotel in New Orleans, and two Embassy Suites by Hilton hotels in Houston and Austin, for an estimated $69.5m. The sales are expected to lead to annual cash flow improvement exceeding $2m and savings of $14.5m in future capital expenditures.

The deal for Le Pavillon is valued at $42.5m, with a sale scheduled for next month. The sale represents a 2.6% capitalization rate on net operating income (NOI).

For the Embassy Suites in Austin and Houston, totaling 300 rooms, the sale price is $27m. Completion is expected in January 2026, with a 2.2% capitalization rate on NOI.

Ashford Hospitality Trust president Stephen Zsigray stated that strategic asset sales will help deleverage the company and improve cash flow. Proceeds will be used to retire mortgage debt and eliminate future capital expenditure obligations, positioning the company for sustained value creation.

Ashford Hospitality Trust recently completed sales of the Residence Inn Evansville East and the Hilton Houston NASA Clear Lake, furthering their strategic asset divestiture plan.

Read more at Yahoo Finance: Ashford Hospitality Trust to sell three hotels in US for $69.5m