Another REIT considers sale

DALLAS – Another hotel REIT with upper upscale and full-service properties is frustrated enough with its public valuation to consider a sale as Ashford Hospitality Trust (AHT) announced its board of directors has formed a special committee to evaluate strategic alternatives to maximize shareholder value, including a potential transaction.

“We’ve been highly encouraged by our success to date in executing our plan to drive outsized EBITDA growth, strategically sell assets, and strengthen our balance sheet,” said President and CEO Stephen Zsigray. “However, we remain frustrated by the discrepancy between the value of our underlying portfolio and the market value of our common stock, and the board has tasked the special committee with proactively exploring alternatives to bridge that gap.”

In conjunction with forming the special committee, AHT has also terminated the current offering of its Series L and M Non-Traded Preferred Stock and suspended redemptions for all of its outstanding non-traded preferred stock.

In late August, the board of directors of Dallas-based Braemar Hotels & Resorts initiated a process for the immediate sale of the REIT that includes nine resorts and five urban properties.

In addition, Braemar and its advisor, Ashford Inc., agreed that “while a fair and reasonable calculation of all amounts due to Ashford would be significantly higher,” Ashford will accept a $480 million termination fee for its advisory agreement. Ashford already received $17 million of the company sale fee upon the execution of the letter agreement, which will be credited against the company sale fee in the event Braemar is sold prior to July 1, 2028.