Ashford Launches Novel Funding Program For Acquisitions

Hilton Alexandria Old Town

Ashford Inc. has launched a $50 million funding program for its externally-advised REIT Ashford Hospitality Trust that is expected to be parlayed into $500 million of hotel acquisitions over the next 12 months. The company announced the funding program Tuesday afternoon, along with the news that Ashford Trust has used the program to support its pending acquisition of a 252-key hotel in Alexandria, Va., for $111 million.

Under the program, Ashford Inc., which is the asset manager for the REITs in the corporate family, will provide 10% of a hotel’s purchase price to Ashford Trust free and clear without any rights to the property. In the case of the hotel is it buying now, the Hilton Alexandria Old Town, Ashford Inc. provided $11.1 million.