Ashford Prime’s 10 Luxury Hotels Up for Grabs as REIT Explores Strategic Alternatives
Ashford Hospitality Prime Inc. has actually chosen to explore a complete range of strategic alternatives, including a possible sale of the company.
Dallas-based Ashford Hospitality Prime has focused on purchasing luxury hotels situated in resort and entrance markets. Since June 30, it owned and run 10 hotels in 6 states and the District of Columbia. The portfolio includes eight wholly-owned hotel buildings and 2 hotel buildings in which it has controlling interest. These hotels represent 3,707 overall living rooms, or 3,472 net spaces.
Ashford Prime values its profile at about $979 million for the quarter ended June 30.
“We do not think Ashford Prime’s present share rate accurately shows the business’s intrinsic value. While we are positive in our strategic strategy, we have concluded that we need to think about all other chances to take full advantage of investor value,” said Monty J. Bennett, Ashford Prime’s chairman and CEO.
The Independent Directors are in the starting phase of the strategic testimonial, and there can be no assurance they will participate in any transaction.
The REIT has retained Deutsche Bank Securities Inc. as their monetary consultant to aid in this procedure.
Ashford Hospitality Prime became a public business in November 2013, when Ashford Hospitality Trust Inc. completed a sequel of its luxury hotels. Ashford Trust controls a bit more than 15 % of Ashford Prime.
Earlier this summer following a full analysis of the possible strategies, Ashford Trust listed for sale a profile of 23 select-service hotels and will certainly take an opportunistic technique to offering the continuing to be select-service hotels in the future. The value of that profile is estimated in between $575 million to $600 million range. It expects to finish a sale of that portfolio in early 2016.