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
Yesterday, 1:00 PM
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%)
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, 9:16 AM
Fri, Mar. 11, 5:38 PM
Fri, Jan. 15, 12:49 PM
- A frustrated owner of 8.2% of the company, Sessa Capital plans to nominate its own slate five to board of Ashford Hospitality Prime (AHP -10.4%) at this year's annual meeting.
- "Corporate governance failures have been an unshakable burden on Ashford Prime since it started trading as a public company in November 2013 and have only worsened over time ... a sale process on a level playing field for all potential bidders is the best way to maximize value for all shareholders."
- The investor notes a number of conflict-of-interest deals which appear to have been for the benefit of Monty Bennett, the chairman and CEO of both Ashford Prime and its external manager Ashford Inc. (AINC -10.1%), but at the expense of all shareholders.
- Responding, Ashford says Sessa just wants a quick sale, regardless of whether its in the best interest of shareholders. It plans to take its time with its previously announced strategic review process.
Nov. 6, 2015, 10:14 AM
- While banks, brokerages, and insurers cheer the now near-certainty of higher rates, a big fall bounce for the REITs (IYR -1.8%) takes at least a pause as these income favorites mull some yield competition.
- Previously: December rate hike back on after big jobs number (Nov. 6)
- The 10-year Treasury yield is up nine basis points to 2.32% and the two-year yield has pushed to more than a five-year high of 0.90%.
- Realty Income (O -3.5%), Omega Healthcare (OHI -3.3%), Ventas (VTR -4.2%), HCP (HCP -2.8%), Medical Properties Trust (MPW -2.8%), Vornado (VNO -2.9%), Equity Residential (EQR -1.7%), AvalonBay (AVB -1.9%), Simon Property (SPG -2%), General Growth (GGP -3.2%), Inland Real Estate (ORC -0.8%), Kimco (KIM -2.6%), Public Storage (PSA -1.3%) Sovran (SSS -2.2%), Government Properties (GOV -2.3%), Boston Properties (BXP -2.6%), Ashford (AHP -5.9%), Hospitality Properties (HPT -2.1%), STAG Industrial (STAG -2.1%), Liberty Property (LPT -2%), American Campus (ACC -2.3%)
- ETFs: IYR, VNQ, DRN, URE, RQI, SCHH, ICF, SRS, RWR, RNP, JRS, KBWY, RFI, NRO, DRV, RIT, REK, RIF, FRI, FTY, PSR, DRA, FREL, WREI, IARAX, LRET, XLRE
Sep. 18, 2015, 10:13 AM
- Remington operates 93 hotels in 28 states with nearly 18K hotel rooms and roughly 8K associates. It's owned by Ashford's (AINC +12.4%) chairman and CEO Monty Bennett.
- The deal values Remington at an estimated EBITDA multiple of 9.4x, and out-of-pocket cash to Ashford is just $625K each quarter for the next four years. The combination is expected to be immediately accretive to normalized adjusted EPS.
- The deal is subject to receiving an acceptable private letter ruling from the IRS.
- Ashford will continue to look for opportunities to install Remington as the property manager at its managed REITs, AHT and AHP. "Remington has a long, demonstrated track record of outperforming other property managers and driving revenue and EBITDA growth at the hotels it manages," says Bennett.
- A conference call is set for today at 11 ET.
Sep. 15, 2015, 12:21 PM
- Pebblebrook Hotel Trust last night said RevPAR this quarter could miss guidance thanks to weaker-than-expected demand in August and September. The stock is lower by 7.2%, and taking most of the rest of the sector along with it.
- Ashford Hospitality (AHT -2.7%), Ashford Hospitality Prime (AHP -1.8%), Sunstone Hotel (SHO -3.3%), LaSalle Hotel (LHO -4%), Chesapeake Lodging (CHSP -3.4%), Summit Hotel (INN -2%), RLJ Lodging (RLJ -3.6%), Chatham Lodging (CLDT -2.2%), FelCor Lodging (FCH -4.1%), Host Hotels (HST -3.7%), DiamondRock (DRH -3.3%), Hersha Hospitality (HT -3.5%).
- Notable outperformers: Hospitality Properties (HPT -0.8%), Strategic Hotels (BEE flat).
Sep. 30, 2014, 9:44 AM
- Noting the stock is off about 14% since being initiated with a Market Perform on July 17, analyst Nikhil Bhalla, sees a better H2 shaping up for the company and upgrades Ashford Hospitality Price (AHP +1.4%) to Outperform with $20 price target.
- "Investors getting into the stock at this level are buying into a portfolio that is trading materially below what it is worth in the private market," he says, estimating that discount to be 28-33%.
Jan. 21, 2014, 4:20 PM
- Ashford Hospitality Prime (AHP) will offer 8M shares with underwriters granted a greenshoe option of 1.2M. The proceeds will be used for the purchase of the Sofitel Chicago Water Tower and the Pier House Resort, along with general corporate purposes.
- AHP was spun out of Ashford Trust (AHT) in November of last year.
Jun. 21, 2013, 8:06 AM
Ashford Hospitality Trust (AHT) prices its 11M share secondary at $12 each, with proceeds set to fund the spinoff of Ashford Hospitality Prime. An ill-timed offering - AHT shares fell 8.5% yesterday and are off another 3.8% premarket to $11.97. (PR)| Jun. 21, 2013, 8:06 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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