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.
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%)
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
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, Jan. 13, 3:30 PM
- LaSalle Hotel Properties (LHO -7.3%) earlier cut its Q4 guidance, saying the weak RevPAR trends for it and the industry continued into the end of the year. At the moment, 2016 isn't looking so promising either, says the company.
- The broad markets are selling off sharply today, but the REITs not so much, and there are even a couple of pockets of green. Not in the lodging sector though:
- Hospitality Properties (HPT -3.1%), Ashford Hospitality (AHT -6.1%), Sunstone Hotel (SHO -6.3%), Pebblebrook Hotel (PEB -4%), Chesapeake Lodging (CHSP -4.9%), Summit Hotel (INN -5.6%), RLJ Lodging (RLJ -6.3%), Chatham Lodging (CLDT -3.2%), FelCor Lodging (FCH -10.2%), Host Hotels (HST -5.5%), Hersha Hospitality (HT -5.1%), DiamondRock (DRH -7.4%), Apple (APLE -1.6%)
Oct. 27, 2015, 10:07 AM
- Another lodging REIT name logs a big loss as UBS's Robin Farley downgrades Ashford Hospitality Trust (AHT -5.4%) to Sell from Neutral.
- The company last week took note of a late Labor Day and a shift in other holiday dates as leading to a sizable drop in business travel in Q3.
- Previously: Pebblebrook Hotel and LaSalle Hotel lead tough session for lodging REITs (Oct. 23)
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).
Aug. 12, 2015, 9:54 AM
- Ashford Trust (AHT -6.3%) is leading the lodging REITs lower after a two-notch downgrade from Buy to Underperform from Bank of America. The team also throws in the towel on Hersha Hospitality Trust (HT -2.5%), cutting to Neutral from Buy.
- Previously: Ashford Trust: Our stock is undervalued (Aug. 6)
- Previously: Hersha lifts guidance as buybacks boost FFO per share (July 29)
Aug. 6, 2015, 12:27 PM
- The 10-year Treasury yield is down five basis points to 2.22% today, but investors continue to bail out of their income favorites.
- The IYR is lower by 1.2%, slightly worse than the market averages.
- National Retail Properties (NNN -1.5%), Omega Healthcare (OHI -2.2%), Starwood Property (STWD -1.4%), Equity Residential (EQR -1.1%), Government Properties (GOV -2%), Hospitality Properties (HPT -3%), Ashford Hospitality (AHT -4.7%), Liberty Property (LPT -2.2%).
- 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
May 7, 2015, 11:45 AM
- Q1 adjusted FFO of $34M or $0.30 per share vs. $24.8M and $0.25 one year ago.
- RevPAR for all hotels up 8.5% Y/Y to $110.69. RevPAR for those hotels not under renovation up 9.9% to $111.77.
- Hotel EBITDA up 12.7% for all hotels. EBITDA margin up 163 basis points. Adjusted EBITDA up 12.3%.
- Previously: Ashford Hospitality Trust beats by $0.02, beats on revenue (May 7)
- AHT +1.6%
Apr. 20, 2015, 5:38 PM
Apr. 9, 2015, 3:24 PM
- A weak 30-year bond auction has long-term Treasury yields on the move higher, with the 10-year up five basis points to 1.96%. One also can't help but notice a recent uptick in capital raising among the equity REITs.
- Realty Income (O -2.2%), Agree Realty (ADC -2.2%), Omega Healthcare (OHI -4%), Medical Properties Trust (MPW -2.5%), W.P. Carey (WPC -2.2%), Duke Realty (DRE -2.5%), Essex Property (ESS -2.9%), Aimco (AIV -3%), Simon Property (SPG -2.4%), Kimco (KIM -2.9%), Inland Real Estate (IRC -3%), DDR Corp (DDR -2.3%), Sovran Self Storage (SSS -2.2%), Washington Real Estate (WRE -4%), Digital Realty Trust (DLR -2%), Hospitality Properties (HPT -2.6%), Ashford Hospitality (AHT -2.4%), Stag Industrial (STAG -4.6%), American Campus (ACC -2.3%).
- ETFs: IYR, VNQ, DRN, URE, SRS, ICF, SCHH, RWR, KBWY, DRV, REK, FRI, FTY, PSR, WREI, FREL
- Previously: Treasury yields on the rise after weak 30-year auction (April 9)
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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