On January 10, 2025, the Company completed the sale of the 315-room Courtyard Boston Downtown located in Boston, Massachusetts, for $123.0 million, subject to customary pro rations and adjustments, resulting in a recognized gain of $32.1 million. This gain is reported within “gain (loss) on consolidation of VIE and disposition of assets and hotel properties” in the Company’s consolidated statement of operations.

On April 14, 2025, the Residence Inn Orlando sold a parcel of land for $7.2 million, net of selling expenses, resulting in a recognized gain of $6.7 million. This gain is reported within “gain (loss) on consolidation of VIE and disposition of assets and hotel properties” in the Company’s consolidated statements of operations.

On August 22, 2025, the Company completed the sale of the 242-room Hilton Houston NASA Clear Lake located in Houston, Texas for $27.8 million, subject to customary pro rations and adjustments, resulting in a recognized gain of $16.5 million. This gain is reported within “gain (loss) on consolidation of VIE and disposition of assets and hotel properties” in the Company’s consolidated statement of operations.

On October 15, 2025, the Company completed the sale of the 150-room Residence Inn San Diego Sorrento Mesa located in San Diego, California, for $42.0 million, subject to customary pro rations and adjustments, resulting in a recognized gain of $23.5 million. This gain is reported within “gain (loss) on consolidation of VIE and disposition of assets and hotel properties” in the Company’s consolidated statement of operations.

On December 18, 2025, the Company completed the sale of the 226-room Le Pavillon hotel located in New Orleans, Louisiana for $42.5 million, subject to customary pro rations and adjustments, resulting in a recognized gain of $1.0 million. This gain is reported within “gain (loss) on consolidation of VIE and disposition of assets and hotel properties” in the Company’s consolidated statement of operations.

On March 1, 2024, the Company received notice that the hotel properties securing the KEYS Pool A and KEYS Pool B loans have been transferred to a court-appointed receiver. See note 7 for discussion of activity relating to the KEYS Pool A and KEYS Pool B loans.

On March 6, 2024, the Company sold the Residence Inn Salt Lake City in Salt Lake City, Utah for $19.2 million in cash. The sale resulted in a gain of approximately $6.9 million for the year ended December 31, 2024, which was included in “gain (loss) on consolidation of VIE and disposition of assets and hotel properties” in the consolidated statements of operations. See note 7.

On April 9, 2024, the Company sold the Hilton Boston Back Bay in Boston, Massachusetts for $171 million in cash. The sale resulted in a gain of approximately $129,000 for the year ended December 31, 2024, which was included in “gain (loss) on consolidation of VIE and disposition of assets and hotel properties” in the consolidated statements of operations. See note 7.

On April 23, 2024, the Company sold the Hampton Inn Lawrenceville in Lawrenceville, Georgia for $8.1 million in cash. The sale resulted in a gain of approximately $4.8 million for the year ended December 31, 2024, which was included in “gain (loss) on consolidation of VIE and disposition of assets and hotel properties” in the consolidated statements of operations. See note 7.

On May 30, 2024, the Company sold the Courtyard Manchester in Manchester, Connecticut for $8.0 million in cash. The sale resulted in a gain of approximately $2.1 million for the year ended December 31, 2024, which was included in “gain (loss) on consolidation of VIE and disposition of assets and hotel properties” in the consolidated statements of operations. See note 7.

On June 10, 2024, the Company sold the SpringHill Suites Kennesaw and Fairfield Inn Kennesaw in Kennesaw, Georgia for $17.5 million in cash. The sales resulted in a gain of approximately $9.6 million for the year ended December 31, 2024,

On June 27, 2024, the Company sold the One Ocean Resort and Spa in Atlantic Beach, Florida for $87.0 million in cash. The sale resulted in a gain of approximately $70.9 million for the year ended December 31, 2024, which was included in “gain (loss) on consolidation of VIE and disposition of assets and hotel properties” in the consolidated statements of operations. See note 7.

In June 2024, the Company was informed by its lender that the lender intended to exercise remedies for the maturity default on the Ashton hotel in Fort Worth, Texas, which secured the Company’s $8.9 million mortgage loan. The Company and the lender agreed to a deed-in-lieu of foreclosure, which was completed on July 16, 2024 and resulted in a gain on extinguishment of debt of approximately $2.6 million for the year ended December 31, 2024, which was included in “gain (loss) on extinguishment of debt” in the consolidated statement of operations.

On August 1, 2023, the Company sold the WorldQuest Resort in Orlando, Florida (“WorldQuest”) for $14.8 million in cash. The sale resulted in a gain of approximately $6.4 million for the year ended December 31, 2023, which was included in “gain (loss) on consolidation of VIE and disposition of assets” in the consolidated statements of operations.

On November 9, 2023, the Company sold the Sheraton Bucks County in Langhorne, Pennsylvania for $13.8 million in cash. The sale resulted in a gain of approximately $3.9 million for the year ended December 31, 2023, which was included in “gain (loss) on consolidation of VIE and disposition of assets” in the consolidated statements of operations.

On June 9, 2023 the Company received a 30 day extension to satisfy the extension conditions in order to negotiate modifications to the KEYS pool F extension test. On July 7, 2023, the Company elected not to make the required paydown to extend its KEYS pool F loan thereby defaulting on such loan. The KEYS pool F loan had a $215.1 million debt balance and was secured by Embassy Suites Flagstaff, Embassy Suites Walnut Creek, Marriott Bridgewater, Marriott Research Triangle, and the W Atlanta Downtown.

On November 29, 2023, the Company completed the deed in lieu of foreclosure transaction for the transfer of ownership of the KEYS F loan to the mortgage lender, which resulted in a gain on extinguishment of debt of approximately $53.4 million for the year ended December 31, 2023, which is included in “gain (loss) on extinguishment of debt” in the consolidated statements of operations. See note 7.

The results of operations for these hotel properties are included in net income (loss) through the date of disposition or derecognition for the years ended December 31, 2025, 2024 and 2023. The following table includes condensed financial information from disposed or derecognized hotel properties for the years ended December 31, 2025, 2024 and 2023 (in thousands):


	Year Ended December 31,
		2025		2024		2023
Total hotel revenue		$	27,112	$	102,694	$	314,938
Total hotel operating expenses		(21,205)		(72,758)		(215,729)
Property taxes, insurance and other		(1,993)		(7,691)		(19,045)
Depreciation and amortization		(6,801)		(14,363)		(45,103)
Impairment charges		(19,821)		—		—
Total operating expenses		(49,820)		(94,812)		(279,877)
Gain (loss) on consolidation of VIE and disposition of assets and hotel properties		73,100		94,406		10,279
Gain (loss) on derecognition of assets		39,054		167,177		—
Operating income (loss)		89,446		269,465		45,340
Interest income		86		419		435
Interest expense and amortization of discounts and loan costs		(7,227)		(23,129)		(52,971)
Interest expense associated with hotels in receivership		(39,038)		(45,592)		(39,178)
Write-off of premiums, loan costs and exit fees		(336)		(959)		(592)
Gain (loss) on extinguishment of debt		77		2,774		53,386
Income (loss) before income taxes		43,008		202,978		6,420
(Income) loss before income taxes attributable to redeemable noncontrolling interests in operating partnership		(654)		(2,385)		(73)
Net income (loss) attributable to the Company		$	42,354	$	200,593	$	6,347

For the year ended December 31, 2025, we recorded impairment charges of $67.6 million. We recorded impairment charges of $31.5 million, $16.3 million, $18.4 million and $1.4 million for the Hilton Alexandria Old Town, the Hilton Santa Cruz Scotts Valley, the New Orleans Le Pavillon Hotel and the Residence Inn Evansville, respectively.

The impairment charges were a result of reduced estimated future cash flows resulting from reductions to the expected holding periods of the hotel properties. The impairment charges for the Residence Inn Evansville, the Hilton Alexandria Old Town, and the New Orleans Le Pavillon Hotel were based on the market approach methodology which compares the net book value of the assets to their fair market value. The impairment charge for the Hilton Santa Cruz Scotts Valley was based on the income approach which utilized a discounted cash flow methodology, supported by the market approach. These valuation techniques are considered Level 3 techniques under the fair value hierarchy.

For the year ended December 31, 2024, we recorded impairment charges of $59.3 million. We recorded impairment charges of $35.9 million for the Hilton Costa Mesa and $23.4 million for the Embassy Suites Portland as a result of reduced estimated cash flows resulting from changes to the expected holding periods of these hotel properties. The impairment charges were based on the income approach utilizing a discounted cash flow methodology, supported by the market approach. These valuation techniques are considered Level 3 techniques under the fair value hierarchy. For the year ended December 31, 2023, no impairment charges were recorded.

The following table presents the fair value of our hotel properties measured at fair value after the aforementioned non-recurring impairment charges as of December 31, 2025, and the related impairment charge recorded (in thousands):


	Fair Value as of December 31, 2025								Year Ended December 31, 2025
	Level 1		Level 2		Level 3		Total		Impairment Charges
Hilton Alexandria Old Town	$	—	$	—	$	60,250	$	60,250	$	31,484	(1)
Hilton Santa Cruz Scotts Valley	$	—	$	—	$	22,100	$	22,100	$	16,344	(1)

On November 11, 2025, the Company entered into a definitive agreement to sell the 150-room Embassy Suites Houston located in Houston, Texas, and the 150-room Embassy Suites Austin located in Austin, Texas, for a combined purchase price of $27.0 million. The agreement included a nonrefundable deposit of $1.0 million which was paid on November 11, 2025. The Embassy Suites Houston and the Embassy Suites Austin sales closed on February 9, 2026 and February 17, 2026, respectively. See note 25. As of December 31, 2025, these properties were classified as held for sale.

As of December 31, 2024, the Courtyard Boston Downtown located in Boston, Massachusetts, which was sold in January 2025, was classified as held for sale. Depreciation and amortization ceased as of the dates the assets were deemed held for sale. Since the sales of these hotels did not represent a strategic shift that has (or will have) a major effect on our operations or financial results, their results of operations were not reported as discontinued operations in the consolidated financial statements.


	December 31, 2025		December 31, 2024
Assets
Investments in hotel properties, gross	$	34,818	$	110,295
Accumulated depreciation	(17,391)		(23,173)
Investments in hotel properties, net	17,427		87,122
Cash and cash equivalents	671		15
Restricted cash	—		7,858
Accounts receivable, net	127		652
Inventories	45		—
Deferred costs, net	10		—



Prepaid expenses and other assets	198		583


Due from third-party hotel managers	—		398
Assets held for sale	$	18,478	$	96,628

Liabilities
Indebtedness, net	$	38,820	$	97,368
Accounts payable and accrued expenses	2,044		1,389
Accrued interest	354		364
Due to related parties, net	9		—





Due from Ashford Inc.	65		18

Liabilities related to assets held for sale	$	41,292	$	99,139