UPDATE: Stifel Nicolaus Initiates Hold on Ashford Hospitality Trust

Stifel Nicolaus initiates a Hold rating on Ashford Hospitality Trust (NYSE: AHT) on the company's high leverage.

Stifel Nicolaus says, "Ashford has one of the most unique capital structures in the REIT sector. The equity portion only accounts for 19.0% of enterprise value (compared to the lodging REIT average of 51.0%). Net-debt accounts for 72.0% (compared to the lodging REIT average of 41.0%) and preferreds account for 9.0%. Therefore, a small swing of 5.0% in asset price can have a 25.0% impact on the value of the common equity."

AHT closed at $9.59 a share on Monday.

(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.