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Activist Investor Says Ashford Trust Is 'Facing A Potentially Crippling Identity Crisis,' Urges Company To Explore Strategic Alternatives

February 29, 2016 11:38 am
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Shares of Ashford Hospitality Trust, Inc. (NYSE: AHT) were trading higher by more than 2 percent on Monday after Rambleside Holdings, a shareholder and investment activist firm that specializes in real estate assets, delivered a letter to the company’s board of directors.

Rambleside Holdings noted that shares of Ashford have fallen a “shocking” 25 percent since its original contact with the company on January 11.

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“We believe Ashford Trust is facing a potentially crippling identity crisis,” the letter stated. “Without drastic action by the Board, the shares will continue to languish at a material discount to intrinsic value, or worse, head even lower.”

Rambleside Holdings is urging Ashford Trust to explore a “full range” of strategic alternatives, including a recombination with Ashford Hospitality Prime Inc (NYSE: AHP) and Ashford Inc (NYSE: AINC). The activist investor added that the separation of its business into separate companies has caused “dramatic value destruction.”

Rambleside continued that the recombination of all three sister entities would “serve several strategic and financial considerations,” including a significant reduction of costs and attract a new base of investors who can “focus on the company’s financial results.”

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