Ashford Hospitality Trust is selling a portfolio of 23 select-service hotels that are mostly brand-managed and intends to sell its remaining select-service hotels in the future. The company will redefine its investment strategy to focus predominately on upper upscale, full-service hotels.
This move reverses Ashford Trust’s earlier decision to have a dedicated select-service hotel platform. In January, Ashford Trust announced plans to launch Ashford Select sometime in the first half of 2015. Upon launch, Ashford Trust had intended to contribute 16 of its existing select-service hotels to Ashford Select.
The decision was made after a full analysis of potential strategies to maximize shareholder value. The company’s advisor, Ashford Inc., may separately pursue sponsoring a select-service platform. It is anticipated that proceeds from the sale of the 23 select-service hotel portfolio will be redeployed into assets that are consistent with Ashford Trust’s redefined strategy.
