AHT Ashford Hospitality Trust Inc

Item 7.01      Regulation FD Disclosure.

Nearly all of the Company’s properties are pledged as collateral for a variety of loans.  On or about March 17, 2020, we sent notice to all of our lenders notifying such lenders that the spread of the novel strain of coronavirus (COVID-19) was having a significant impact on the travel and hospitality industry and that our hotels were experiencing a severe decrease in revenue resulting in a negative impact on cash flow. While our loan agreements do not contain forbearance rights, we requested a modification to the terms of the loans.  Specifically, we requested that for a period of time, shortfalls in debt service payments accrue without penalty and all extension options be deemed granted notwithstanding the existence of any debt service payment accruals. Beginning on April 1, 2020, we did not make principal or interest payments under nearly all of our loan agreements, which constituted an “Event of Default” as such term is defined under the applicable loan agreement.  Pursuant to the terms of the applicable loan agreement, such an Event of Default caused an automatic increase in the interest rate on our outstanding loan balance for the period such Event of Default remains outstanding. Following an Event of Default, our lenders can generally elect to accelerate all principal and accrued interest payments that remain outstanding under the applicable loan agreement and start to foreclose on the applicable hotel properties that are security for such loans.  The Company is in the process of negotiating forbearance agreements with its lenders. At this time, we cannot predict the likelihood that these forbearance agreement discussions will be successful in modifying such terms.

On May 8, 2020, Ashford Scotts Valley LP, a subsidiary of the Company, received an Acceleration Notice from U.S. Bank National Association, as Trustee, for the benefit of the registered holders of GS Mortgage Securities Corporation II, Commercial Mortgage Pass-Through Certificates, Series 2015-GC30 (the “2015 Noteholder”) relating to a loan made on March 6, 2015 and assumed by Ashford Scotts Valley LP on February 26, 2019, in the original principal amount of $27,020,000.00 (the “2015 Loan”). The 2015 Loan is currently held by the 2015 Noteholder and is evidenced by a Loan Agreement dated as of March 6, 2015 (the “2015 Loan Agreement”). Midland Loan Services, a division of PNC Bank, National Association is the special servicer of the 2015 Loan for 2015 Noteholder. On April 6, 2020 and May 6, 2020, the Company failed to make monthly payments that were due under the 2015 Loan. The failure to make such payments constituted an Event of Default, as such term is defined in the 2015 Loan Agreement. Pursuant to the Acceleration Notice, the 2015 Noteholder notified Ashford Scotts Valley LP that it was accelerating the Loan in full. Pursuant to the Acceleration Notice, the 2015 Noteholder demanded immediate payment of $27,020,000.00, which is the sum of all principal and accrued interest amounts, plus late charges, default interest, attorney’s fees, and advances of costs and expenses. Pursuant to the Acceleration Notice, the Trustee demanded immediate payment of the outstanding principal amount of the Loan, plus late charges, default interest, attorney’s fees and costs and expenses. The 2015 Loan is secured by a mortgage lien against the Hilton Scotts Valley hotel in Santa Cruz, California.

The information in this Form 8-K and Exhibits attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.