Investors Are Ignoring The Long-Term Bullish Outlook For Recent Spin Off Ashford Hospitality Prime
John Leonard, CFA • 16 Comments
John Leonard, CFA • 16 Comments
Thu, Jul. 21, 12:24 PM
- Industry publication Reit Zone says The Weisman Group is set to boost its bid for Ashford Hospitality Prime (AHP +3.1%) to $23.65 per share from the previous $20.25.
- External manager Ashford Inc. (NYSEMKT:AINC) is up 0.5% on the session.
- Previously: Ashford Prime - buyout offer materially undervalues company (June 27)
Tue, Jul. 5, 9:13 AM
- 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.
Tue, Jun. 28, 1:00 PM
Mon, Jun. 27, 4:26 PM
- 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.
- AHP closed today at $14.32.
Wed, Jun. 15, 10:01 AM
- 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.
- Ashford (AHP +1.6%), (AHT +1.2%), Starwood (HOT +0.8%), Hospitality Properties (HPT +0.8%), Host Hotels (HST +1.5%), LaSalle (LHO +2.2%), Sunstone Hotel (SHO +1.1%), Pebblebrook (PEB +2.2%), Chesapeake (CHSP +1.3%), Chatham (CLDT +1.2%), Hersha (HT +1.4%)
Tue, Jun. 14, 4:27 PM
Mon, Jun. 13, 7:14 AM
- 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.
- Source: Press Release
Fri, Jun. 10, 1:11 PM
Thu, Jun. 9, 1:12 PM
Wed, Jun. 8, 1:00 PM
Wed, Jun. 8, 12:46 PM
Wed, Jun. 8, 10:19 AM
- Confirming receipt of an unsolicited proposal to buy the company from The Weisman Group - a real estate investment firm based out of Sherman Oaks, CA - Ashford Prime (AHP +35.3%) says it intends to carefully review the offer.
- To review, Ashford Prime was spun out of Ashford Trust (AHT +2.1%) just less than three years ago. The performance of the stock price since has been underwhelming (off about 50%).
- The company - after completing a strategic review earlier this year - now is engaged in a proxy fight with activist investor Sessa Capital.
- Previously: Ashford Prime takeover offer at near 100% premium (June 8)
- The stock just came off trading halt, and is now up 35% to $15.30 per share. Weisman's offer is for $20.25. External manager Ashford, Inc (AINC -1.6%).
Wed, Jun. 8, 10:02 AM| Wed, Jun. 8, 10:02 AM
Wed, Jun. 8, 9:52 AM
- Ashford Hospitality Prime (AHP +28.3%) is halted with news pending.
Wed, Jun. 8, 9:16 AM
Wed, Jun. 1, 8:21 AM
Ashford Hospitality Prime, Inc. invests primarily in high RevPAR, luxury, upper-upscale and upscale hotels. The company's hotel properties include Hilton La Jolla Torrey Pines, Capital Hilton in Washington DC, Marriott Plano Legacy Town Center, Seattle Marriott Waterfront, Courtyard San... More
Industry: REIT - Hotel/Motel
Country: United States
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