Ashford Hospitality Prime has decided to explore a full range of strategic alternatives, including a possible sale of the company, according to CoStar.
Dallas-based Ashford Hospitality Prime has focused on investing in luxury hotels located in resort and gateway markets. As of June 30, 2015, it owned and operated 10 hotels in six states and the District of Columbia. The portfolio includes eight wholly owned hotel properties and two in which it has controlling interest for a total of 3,707 rooms.
Ashford Prime values its portfolio at about $979 million for the quarter ended June 30, 2015.
“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,” Monty J. Bennett, Ashford Prime’s chairman and CEO, said in a statement.
The REIT has retained Deutsche Bank Securities Inc. as its financial advisor to assist in the 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% of Ashford Prime.
Earlier this summer, following an analysis of potential strategies, Ashford Trust listed for sale a portfolio of 23 select-service hotels and said it plans to take an opportunistic approach to selling its remaining select-service hotels in the future. The value of that portfolio is estimated to be in the $575 million to $600 million range. It expects to complete a sale of that portfolio in early 2016.