A $325 million hotel-backed loan tied to eight properties was declared in default after required payments and documents were not delivered by a February deadline.

February 23, 2026

Loan deadlines can shift quickly. When required payments are missed, lenders act just as fast.

Ashford Hospitality Trust disclosed that subsidiaries tied to a large hotel mortgage received notice that the debt has been accelerated. The loan, originally issued in 2018 with a principal balance of $395 million, has been amended and extended several times and is now held in a commercial mortgage-backed securities trust, with Wilmington Trust serving as trustee.

Missed Extension Requirements Trigger Default

Under the most recent extension terms, the borrower was required to complete several steps by Feb. 9, 2026:

• Make a principal payment tied to debt yield
• Pay an additional extension-related amount
• Deliver updated interest rate cap documentation

Those requirements were not met by the deadline, triggering an event of default under the loan agreement.

Lender Demands Immediate Repayment

Following the default, the trustee accelerated the loan in full. The borrower was directed to immediately repay the remaining $325 million principal balance, along with accrued interest, default-rate interest, late fees, and other amounts due under the agreement.

The notice also requires delivery of replacement interest rate cap documents within five business days.

Eight Hotels Back the Loan

The mortgage is secured by eight hotel properties across the United States:

• Embassy Suites Portland
• Embassy Suites Crystal City
• Embassy Suites Orlando
• Embassy Suites Santa Clara
• La Concha Key West
• Hilton Costa Mesa
• Sheraton Minneapolis
• Historic Inns of Annapolis

Ashford stated that the acceleration does not trigger cross-default provisions in other subsidiary-level loans. The parent company does not carry debt at the corporate level.

CWCapital Asset Management serves as the special servicer for the loan within the securitized structure.

With the loan now accelerated, attention turns to what comes next, including potential repayment or restructuring discussions.