Ashford Hospitality to sell Residence Inn in San Diego for $42M

Ashford Hospitality (AHT) has signed a definitive agreement to sell the 150-room Residence Inn San Diego Sorrento Mesa located in San Diego, California for $42.0M or $280K per key. The sale is expected to be completed in October and is subject to normal closing conditions. The company provides no assurances that the sale will be completed on these terms or at all. When adjusted for the company’s anticipated capital expenditures of $16.0M, the sale price represents a 5.7% capitalization rate on net operating income or a multiple of 15.3 times Hotel EBITDA for the twelve months ended July 31, 2025. Excluding the anticipated capital spend, the combined sale price represents a 7.9% capitalization rate on net operating income or a multiple of 11.1 times Hotel EBITDA for the twelve months ended July 31, 2025.