On February 9, 2026 and February 17, 2026, the Company completed the sales of the 150-room Embassy Suites Houston located in Houston, Texas, and the 150-room Embassy Suites Austin located in Austin, Texas, for a combined $27.0 million, subject to customary pro rations and adjustments. The sales resulted in gains of $4.8 million and $4.2 million, respectively, which are reported within “gain (loss) on disposition of assets and hotel properties” in the Company’s consolidated statement of operations.

On March 5, 2026, the Company completed the sale of the 333-room Hilton St. Petersburg Bayfront located in St. Petersburg, Florida for $96 million, subject to customary pro rations and adjustments. The sale resulted in a gain of $80.1 million which is reported within “gain (loss) on disposition of assets and hotel properties” in the Company’s consolidated statement of operations.

On March 17, 2026, the Company completed the sale of the 157-room La Posada de Santa Fe located in Santa Fe, New Mexico for a purchase price of $57.5 million, subject to customary pro rations and adjustments. The sale resulted in a gain of $13.2 million which is reported within “gain (loss) on disposition of assets and hotel properties” in the Company’s consolidated statement of operations.

On March 31, 2026, the Company completed the sale of the 252-room Hilton Alexandria Old Town located in Alexandria, Virginia for a purchase price of $58.0 million, subject to customary pro rations and adjustments. The sale resulted in a loss of $2.3 million which is reported within “gain (loss) on disposition of assets and hotel properties” in the Company’s consolidated statement of operations.

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 disposition of assets and hotel properties” in the Company’s consolidated statement of operations.

The results of operations for disposed hotel properties are included in net income (loss) through the date of disposition. See note 2 for the fiscal year 2026 and 2025 dispositions. The following table includes condensed financial information from the Company’s dispositions (in thousands):


	Three Months Ended March 31,
		2026		2025
Total hotel revenue		$	13,217	$	28,320
Total hotel expenses		(9,337)		(18,499)
Property taxes, insurance and other		(888)		(1,474)
Depreciation and amortization		(1,311)		(4,512)

Total operating expenses		(11,536)		(24,485)
Gain (loss) on disposition of assets and hotel properties		100,030		31,868
Gain (loss) on derecognition of assets		7,790		10,046
Operating income (loss)		109,501		45,749
Interest income		—		24
Interest expense and amortization of discounts and loan costs		(2,765)		(8,531)
Interest expense associated with hotels in receivership		(7,820)		(10,046)
Write-off of premiums, loan costs and exit fees		(85)		(241)
Gain (loss) on extinguishment of debt		(25)		—
Income (loss) before income taxes		98,806		26,955
(Income) loss before income taxes attributable to redeemable noncontrolling interests in operating partnership		(1,413)		(431)
Net income (loss) attributable to the Company		$	97,393	$	26,524

For the three months ended March 31, 2026, we recorded impairment charges on nine properties totaling $112.6 million. 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 four properties were based on a market approach methodology which compares the net book value of the assets to their fair market value. The impairment charge for the remaining five properties were 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.

The following table presents the fair value of our hotel properties measured at fair value after the aforementioned non-recurring impairment charges as of March 31, 2026 and the related impairment charge recorded (in thousands):


	Fair Value as of March 31, 2026								Three Months Ended March 31, 2026
	Level 1		Level 2		Level 3		Total		Impairment Charges (1)
Silversmith Hotel	$	—	$	—	$	16,000	$	16,000	$	2,875	(2)
Hyatt Regency Long Island	—		—		26,052		26,052		1,233		(2)
Sheraton Indianapolis City Centre	—		—		18,500		18,500		8,582		(2)
Hilton Garden Inn Austin	—		—		26,750		26,750		21,645		(2) (4)
Hilton Minneapolis St. Paul Airport	—		—		17,200		17,200		22,275		(3)
Embassy Suites Portland	—		—		10,900		10,900		12,738		(3)
Embassy Suites Crystal City	—		—		54,500		54,500		4,936		(3)
Hilton Parsippany	—		—		17,300		17,300		31,014		(3)
Hampton Inn Parsippany	—		—		12,800		12,800		7,351		(3)

On February 25, 2026, the Company entered into definitive agreements to sell the 160-room Embassy Suites Palm Beach Gardens located in Palm Beach Gardens, Florida for a purchase price of $41.0 million. The agreement included a nonrefundable deposit of $2.1 million which was paid on February 25, 2026. See note 16.

On March 16, 2026, the Company entered into a definitive agreement to sell the 168-room Lakeway Resort & Spa located in Austin, Texas for a purchase price of $37.8 million. The agreement included a nonrefundable deposit of $500,000 which was paid on March 16, 2026.

On March 26, 2026, the Company entered into a definitive agreement to sell the 150-room Embassy Suites Dallas located in Dallas, Texas for a purchase price of $17.0 million. The agreement included a nonrefundable deposit of $500,000 which was paid on March 26, 2026. See note 16.

As of December 31, 2025, the Embassy Suites Houston and the Embassy Suites Austin, which were sold in February 2026, were 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.


	March 31, 2026		December 31, 2025
Assets
Investments in hotel properties, gross	$	87,459	$	34,818
Accumulated depreciation	(35,567)		(17,391)
Investments in hotel properties, net	51,892		17,427
Cash and cash equivalents	1,767		671

Accounts receivable, net	1,236		127
Inventories	240		45
Deferred costs, net	104		10



Prepaid expenses and other assets	540		198



Assets held for sale	$	55,779	$	18,478

Liabilities
Indebtedness, net	$	61,983	$	38,820
Accounts payable and accrued expenses	3,610		2,044
Accrued interest	396		354
Due to related parties, net	348		9





Due to Ashford Inc., net	276		65

Liabilities related to assets held for sale	$	66,613	$	41,292