Ashford Hospitality Concludes Strategic Review Process, Says None Of The Received Offers Provides 'Adequate Value' To Shareholders

by Jayson Derrick

April 8, 2016 9:27 AM | 1 min read | Make a Comment

Ashford Hospitality Prime IncAHP

's Board of Directors

announced on Friday it has completed a previously announced review of strategic alternatives. Ashford Hospitality's Board stated that while it has received interest from several financial and strategic buyers, none of the offers it received "would provide adequate value to stockholders." Alternatively, the company announced a number of immediate changes and longer-term initiatives that can enhance value for shareholders. Specifically: 1) a $50 million stock repurchase program, 2) amendment to its dividend policy, 3) liquidating its investment in the AIM Real Estate Hedged Equity investment fund, 4), unwinding the OP unit enfranchisement preferred equity transaction, 5) commencing the sale process of 4 assets that may be under-performing in terms of revenue per available room. In addition, the company reaffirmed its strategy of investing in luxury hotels and resort while also targeting a leverage level of Net Debt/EBITDA of 5.0x or less. "After a thorough review of all strategic alternatives available to the Company, we believe executing on these value-enhancing initiatives is the best path forward to maximize value for all stockholders of Ashford Prime," said Curtis B. McWilliams, Ashford Prime's Lead Independent Director. "The Board is confident in Ashford Prime's long-term strategic plan and will continue to focus on pursuing opportunities that will drive long-term value of the platform."

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Posted In: News Ashford Hospitality Prime Curtis McWilliams Hospitality Stocks

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