Stellar Fundamentals Obfuscated By Confusing Events At Ashford Hospitality Trust
Dane Bowler • 28 Comments
Dane Bowler • 28 Comments
Ashford Hospitality Presents A Potential 40% Upside Catalyzed By Impending Spin-Off
Dane Bowler • 25 Comments
Dane Bowler • 25 Comments
Ashford's Spin-Off Is Bullish
Thomas Sobon • 25 Comments
Thomas Sobon • 25 Comments
Thu, Jul. 21, 9:49 AM
- The lodging REIT sector is little-changed in early action, but Ashford Hospitality Trust (AHT -2.4%) is an outlier after Credit Suisse's Ian Weissman downgrades to Underperform. The price target is cut to $5 from $6, and compares to the current $5.94.
- Weissman notes a premium valuation, risks from floating-rate debt exposure, and uncertainty surrounding the company's limited-service portfolio. As for whether a buyout could bail out longs, Weissman says a takeover could be difficult given the external management structure.
- Ashford spinoff, Ashford Hospitality Prime (which has the same external manager) is proving the point as it fends off a takeover effort by The Weisman Group.
Wed, Jul. 6, 7:23 PM
- Ashford Hospitality Trust (AHT +1%) has priced an offering of 4.8M shares of preferred stock at $25/share.
- The shares are Series F Cumulative Preferred Stock with dividends accruing at 7.375% per annum. Settlement of the deal will come around July 13.
- The company will use proceeds to redeem its 9% series E Cumulative Preferred Stock, and any excess for general purposes.
- Morgan Stanley and UBS wre joint book runners.
Mon, Jun. 27, 3:20 PM
- There's plenty of green in the REIT space today, with the IYR off just 0.25% (vs. the S&P 500's 2% decline). Helping is the continuing plunge in interest rates, with the 10-year yield at 1.46% within seven basis points of an all-time low.
- Among the gainers are Realty Income (O +1.7%), National Retail Properties (NNN +1%), Senior Housing (SNH +2.2%), Omega Healthcare (OHI +0.9%), AvalonBay (AVB +1.1%), Kimco (KIM +1.3%), Tanger Factory (SKT +1.9%), and Public Storage (PSA +3.8%).
- Lodging REITs, however, are dependent on a steady stream of overseas tourist money, and the dollar's continued surge vs. everything not named the yen promises to crimp foreign visits. Ashford (AHT -6.6%), Sunstone (SHO -4.8%), LaSalle (LHO -4.1%), Pebblebrook (PEB -4.2%), Chesapeake (CHSP -3.3%), Host (HT -6.7%), DiamondRock (DRH -4.8%), Apple (APLE -2.9%), FelCor (FCH -5.4%).
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, 4:25 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%).
Thu, Jun. 2, 1:00 PM
Wed, Jun. 1, 4:25 PM
- Sold was a 5-hotel, 1,396-room portfolio of select-service hotels for $142M, or an 8% cap rate.
- AHT also agrees to sell two Palm Desert hotels for $36M, or an 8.3% cap rate.
- The 5-hotel sale was the first step in the company's plan to dispose of non-core, select-service hotels. Further sales are anticipated to close in Q3.
- Source: Press release
Thu, May 19, 12:43 PM
- The entire lodging sector is feeling the pain of some pessimism from Bank of America Merrill Lynch on slowing demand.
- The investment firm is convinced that operators are at risk of falling short of their RevPAR guidance.
- Other declines include Ashford Hospitality (AHT -5.3%), Chesapeake Lodging Trust (CHSP -4.2%), InterContinental Hotels Group (IHG -3%), La Quinta (LQ -2.6%), Choice Hotels (CHH -1.5%), Marriott International (MAR -1.5%), and Interval Leisure Group (IILG -5.1%).
- Previously: BAML: Benign lodging cycle is over (May 19)
- Previously: Bank of America goes to the sideline on Hilton Worldwide (May 19)
Thu, May 19, 9:58 AM
- RLJ Lodging Trust (RLJ -5.1%) is the recipient of a two-notch downgrade to Underperform from Buy at BAML.
- The sector as a whole is under a great deal of pressure again today, still reacting to the FOMC's surprising hawkishness yesterday. Not only do higher rates compete with these dividend payers, but operationally there's pain as the resultant stronger dollar slows foreign demand for rooms.
- Ashford Trust (AHT -3.6%), Sunstone Hotel (SHO -3.5%), LaSalle Hotel (LHO -3.7%), Chesapeake Lodging (CHSP -1.9%), Chatham Lodging (CLDT -1.8%), Host Hotels (HST -4.1%), Hersha Hospitality (HT -5.2%), DiamondRock (DRH -4.9%).
Thu, May 5, 4:27 PM
Wed, May 4, 5:35 PM
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Mon, Apr. 18, 7:33 AM
- Inline with plans to divest non-core assets, Ashford Hospitality Trust (NYSE:AHT) announces an agreement to sell five hotels with 1,396 rooms for $142M in cash.
- Three hotels are in Orlando and managed by Marriott, and the other two are in New Jersey and Atlanta, and managed by Remington Lodging.
- The sale price represents a cap rate of 8%. Twelve-month trailing RevPAR is $84, with occupancy of 79%, and ADR of $106.
- Source: Press Release
Mon, Mar. 14, 4:49 PM
Thu, Feb. 25, 4:42 PM
- Q4 adjusted FFO of $30M or $0.26 per share vs. $18M and $0.17 one year ago. Full-year AFFO of $1.41 per share vs. $1.05 in 2014.
- RevPAR for hotels not under renovation up 7.3% Y/Y. Adjusted EBITDA up 31%; Hotel EBITDA margin up 112 bps.
- Company strategy refinements reaffirmed: A focus on acquiring and owning upper-upscale, full-service hotels; no expectation of any future platform spinoffs; targeted net debt to gross asset ratio of 55-60%; targeted cash and cash equivalents at 25-35% of total market cap for working-capital needs, as a hedge against an industry downturn, and for opportunistic purchases and stock buybacks.
- Conference call tomorrow at 11 ET
- Previously: Ashford Hospitality Trust beats by $0.01, beats on revenue (Feb. 25)
- AHT flat after hours
Thu, Feb. 25, 4:33 PM
Ashford Hospitality Trust, Inc. is a real estate investment trust engaged in investing in the hospitality industry. It provides real estate investment services and invests across all segments and at all levels of the capital structure, including direct hotel investments, first mortgages,... More
Industry: REIT - Hotel/Motel
Country: United States
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