ASHFORD HOSPITALITY TRUST INC Material Event - What Happened

Hey there! Let's break down what's going on with Ashford Hospitality Trust Inc. in a way that makes sense, even if you're not a finance wizard. Think of this as me explaining a big news story to you over coffee.

---

1. What happened? (The actual event, in plain English)

Okay, so imagine Ashford Hospitality Trust Inc. (which basically owns a bunch of hotels) just made a big move. They sold one of their hotels, the Le Pavillon hotel, which has 226 rooms and is located in New Orleans, Louisiana. They sold it for $42.5 million in cash.

Think of it like a restaurant chain deciding to sell one of its locations. They're getting a chunk of cash in exchange for that specific property.

2. When did it happen?

This news broke on December 18, 2025. The company officially reported it in a Form 8-K filing with the SEC on December 23, 2025.

3. Why did it happen? (The backstory and reasons)

Companies don't just do big things for no reason. Ashford Hospitality Trust Inc. made this move because selling a hotel is a common way for a company to raise a significant amount of cash.

They might need this cash for several reasons:

• To pay down existing debts: Reducing debt can make the company financially stronger.
• To fund other investments: Perhaps they want to buy different, more profitable hotels, or invest in renovating their existing properties.
• To improve their overall financial flexibility: Having more cash on hand gives them more options for future strategic moves.

The filing doesn't explicitly state the exact reason, but these are typical motivations for selling a major asset like a hotel.

4. Why does this matter? (The "So What?")

This isn't just some boring corporate announcement; it actually has real consequences. This event is important because:

• It brings in a significant amount of cash ($42.5 million) to the company. This can improve their financial health and give them more options.
• It changes the company's portfolio. They now own one less hotel, which means their overall revenue potential and asset base will shift.
• It's considered a "material" event, meaning it's important enough to potentially influence investor decisions. The company even included "pro forma financial information" in their filing, which are basically "what if" financial statements showing how their finances would look after this sale. This tells us it's a big enough deal to change their financial picture.

5. Who is affected?

This event doesn't happen in a vacuum. Here's who might feel the ripples:

• Investors/Shareholders (that's you!): The cash inflow could be seen positively, especially if it's used to reduce debt or fund growth. However, the loss of a revenue-generating asset also needs to be considered.
• The Company Itself: Their balance sheet will change significantly with the cash injection and the removal of the hotel asset. Their overall strategy might be shifting.
• Employees of Le Pavillon hotel: While the company sold the hotel, the hotel itself will continue to operate under new ownership. Employees will now work for the new owner, 833 Poydras St. Prime Property, LLC.
• Customers (hotel guests): Guests of the Le Pavillon hotel will likely experience no immediate change, but over time, the new ownership might bring different management or renovation plans.
• Lenders/Creditors: If the cash is used to pay down debt, those who lent money to Ashford will see their risk potentially decrease.

6. What happens next? (The immediate and future implications)

So, what should we expect to see unfold?

• Immediately: The company now has $42.5 million in cash. We'll be looking for any announcements about how they plan to use these funds.
• In the coming weeks/months: The company will likely update investors on their financial situation, possibly detailing how the proceeds from the sale are being deployed. We'll be watching to see if they announce debt repayments, new acquisitions, or other strategic uses for the cash. The pro forma financials attached to the filing will give a preliminary look at the financial impact.

7. What should investors/traders know? (Practical takeaways)

For those of you who own Ashford stock or are thinking about trading it, here are a few things to keep in mind:

• Cash is King: The company now has a significant cash boost. How they use it will be crucial.
• Portfolio Shift: They've shed an asset. Consider if this sale aligns with their long-term strategy and if the remaining portfolio is stronger or weaker as a result.
• Review Pro Forma Financials: The company provided "pro forma" financials (Exhibit 99.1). If you're serious about understanding the impact, these are worth looking at to see the estimated financial picture after the sale.
• It's Not Financial Advice: This is just information to help you understand. Always make your own investment decisions or consult with a financial advisor.

---

Hopefully, that helps you understand what's going on with Ashford Hospitality Trust Inc. Keep an eye out for updates!