Ashford Hospitality Trust, a REIT that concentrates on upper upscale, full-service hotels said it is "most likely" that it would hand back the keys to lenders on 19 hotels.

"The company believes it's in the best interest of its common and preferred stockholders to not make the required paydown of approximately $255 million," it said, adding that would save an additional $80 million in expected capital expenditures in the properties through 2025.

Ashford had ended the first quarter with $3.8 billion in total loans with a blended average interest rate of 7.1%. "As of the end of the first quarter, approximately 40% of the company's hotels were in cash traps under their respective loans compared to 79% at the end of the fourth quarter of 2022," the REIT said. "The hotels that are currently out of cash traps generated approximately 70% of the company's full-year 2022 Hotel EBITDA. Any excess cash flow generated by hotels in cash traps will be held by the lender and will not be available for corporate purposes."