RYE BROOK, NY-Ashford Hospitality Trust has completed the $35.5-million sale of the Hilton Rye Town here to an investment group spearheaded by Chicago-based Lodging Capital Partners. The Dallas-based REIT says it used the proceeds from the all-cash sale to reduce borrowings on its credit facility.

A Cushman & Wakefield Sonnnenblick Goldman team advised Ashford on the sale, its second this year following the February sale of the JW Marriott San Francisco to an affiliate of Thayer Lodging Group for $96 million. “We are pleased to complete the accretive sale of this hotel that exhibited no positive operating cash flow over the past year,” Ashford CEO Monty Bennett says in a release. “In 2011, we have already generated in excess of $130 million in gross proceeds that have been used to reduce our debt levels and free up capacity on our line of credit.”

C&WSG senior managing director Tom McConnell, who led a team that also included Jared Kelso and Ernest Lee, says the Hilton represents “the premier corporate and meeting destination in Westchester County. The strong interest we received demonstrated that there continues to be capital targeting high quality, well located and well managed hotels throughout the US, particularly for those in the New York area.”

The 447-key facility, which first opened in 1973, is about 30 miles north of Manhattan. The property will continue to be managed by Hilton Hotels.