Speaking on the conference call after a sizable earnings miss, Ashford Prime (AHP +6.3%) CEO Monty Bennett says a deal at a net price (after a $70M fee to AINC) of $20.58 per share (the latest bid from The Weisman Group) or higher would be a great result for the shareholders.
He notes, however, that Weisman refuses to sign an NDA even though other suitors have done so.
Sold was the 250-room Courtyard Seattle Downtown/Lake Union for $84.5M. The company realized about $15M in net proceeds from the sale. The removal of this hotel which had a trailing 12-month RevPAR of $157, will bring up the overall portfolio average (currently $200).
Since the buyback was initiated, AHP has repurchased 2.4M shares for $32.1M, removing 8.4% of the float.
While the board is willing to consider a sale, the $1.4B, or $20.20 per share offer from The Weisman Group isn't going to cut it, says Ashford Prime (AHP -1.4%) CEO Monty Bennett.
He notes the offer is a gross price from which the $70M management termination fee to Ashford Inc. (NYSEMKT:AINC) must be paid, but Bennett and team continue to believe that fee could be materially higher.
The San Francisco Board of Supervisors last week passed a bill requiring home-sharing services like Airbnb (Private:AIRB) to remove listings of units that have not been registered with the San Francisco Office of Short-Term Rentals.
The team at Canaccord expects a near-term reduction of Airbnb listings of 80%, and nearly 50% on a stabilized basis. This should be a "marginal tailwind," and help San Francisco relative to other major hotel markets in coming months. Other cities are likely to follow suit.
Buy rated stocks remain: Apple Hospitality (APLE +0.6%), DiamondRock (DRH +2%), Summit Hotel (INN +0.6%), Marriott (MAR +0.9%), and RLJ Lodging (RLJ +1.6%).
Meanwhile, the lodging sector as a whole has its tail in the air as not only this news, but Airbnb's agreement to begin collecting occupancy tax in Pennsylvania filters through.
All of the company's director nominees received a plurality of votes at the annual meeting. However, "withheld" votes exceeded "for" votes for each member. In accordance with company policy, each submitted their resignation, but all resignations were rejected.
Lead director Curtis McWilliams says the board is fully aware of investor concerns and looks forward to addressing them soon.
The special committee of the board has given the green light for AHP's financial advisors to connect with The Weisman Group to review its $20.25 per share buyout proposal.