Ashford Hospitality Prime is exploring a possible sale of the company.
The Dallas-based company focused on investing in luxury hotels located in resort and gateway markets. As of June 30, it owned and operated 10 hotels in six states and the District of Columbia. The portfolio includes eight wholly owned hotel properties and two hotel properties in which it has controlling interest. These hotels represent 3,707 total rooms, or 3,472 net rooms.
Ashford Prime values its portfolio at about $979 million for the quarter ended June 30.
"We do not believe Ashford Prime's current share price accurately reflects the company's intrinsic value. While we are confident in our strategic plan, we have concluded that we should consider all other opportunities to maximize shareholder value,” said Monty J. Bennett, Ashford Prime's chairman and CEO.
The Independent Directors are in the beginning stage of the strategic review, and there can be no assurance they will enter into any transaction.
The REIT has retained Deutsche Bank Securities as their financial advisor to assist in this process.
Ashford Hospitality Prime became a public company in November 2013, when Ashford Hospitality Trust Inc. completed a spin-off of its luxury hotels. Ashford Trust controls a little more than 15 percent of Ashford Prime.
Earlier this summer, following a full analysis of the potential strategies, Ashford Trust listed for sale a portfolio of 23 select-service hotels and will take an opportunistic approach to selling the remaining select-service hotels in the future. The value of that portfolio is estimated between $575 million to $600 million range. It expects to complete a sale of that portfolio in early 2016.