Ashford 8 Portfolio

Structuring Savvy Loan Workouts For An Embattled Hotel Portfolio

During the pandemic, this hotel portfolio experienced an unprecedented and sustained demand shock causing occupancy to plummet. CW’s tenured hospitality experts applied property-specific insights and extensive industry experience to craft a workout plan that would give the assets time to return to performing status. After an initial loan modification in 2021 due to the pandemic performance decline, the loan was further modified in 2023 and 2024 due to the portfolio’s inability to meet extension test debt yield requirements. CW structured each modification to balance borrower and lender needs, providing the borrower with extensions in exchange for significant paydown requirements. CW’s three successful loan modifications included the cumulative paydown of $70M of principal balance. The loan is expected to return to the master servicer as performing in the near future.