Ashford Hospitality Trust has approved a plan to spin-off its asset management business into a separate publicly traded company in the form of a taxable distribution. The distribution is expected to be completed in the third quarter of 2014 and will be comprised of common stock in Ashford, a newly formed or successor company of the company's existing advisor subsidiary, Ashford Hospitality Advisors LLC, which currently advises Ashford Hospitality Prime.
The company plans to file a listing application for Ashford Inc. with the NYSE or NYSE MKT Exchanges. In connection with the spin-off, it is anticipated that Ashford Inc. will enter into a 20-year advisory agreement to externally advise the company. In addition, Ashford Inc. will continue to externally advise Ashford Prime.
In June, Ashford spun off eight of its top revenue-per-available-room hotels into a new real estate investment trust, Ashford Hospitality Prime, which look to invest primarily in the upscale through luxury segments in gateway markets. It's latest acquisiton was the Sofitel Chicago Water Tower for $153 million.