Ashford Inc. announced that its stockholders approved the proposals relating to the company’s combination with Remington Holdings at a special meeting held yesterday.
Holders of over 80 percent of Ashford shares present and voting at the meeting, representing over 85 percent of outstanding shares, voted in favor of the combination, and approximately 56 percent of shares, excluding shares owned by Ashford Hospitality Trust, Ashford Hospitality Prime, and insiders and related parties, present and voting at the meeting voted in favor of the combination. The combination will create the only public, pure-play provider of asset and property management services to the lodging industry.
“With stockholder support of our combination with Remington, we have achieved a significant milestone as we move to complete this transformational transaction, which we expect to close during the second quarter,” said Monty J. Bennett, Ashford’s chairman and chief executive officer. “The combination will rapidly build operating scale and earnings power, and we expect it to significantly accelerate Ashford’s growth.”
The proposed transaction is expected to be completed in the second quarter of 2016, and is subject to receiving an acceptable private letter ruling from the U.S. Internal Revenue Service, receipt of certain tax opinions, satisfaction of other tax related conditions, other customary closing conditions, as well as the company’s stockholders’ approval.
Ashford Hospitality Prime rules out sale of company - https://t.co/M0ruHdQF4s
— NAREIT (@REITs_NAREIT) April 8, 2016
Ashford serves as the advisor to two NYSE listed real estate investment trusts, Ashford Hospitality Trust and Ashford Hospitality Prime. Combined, Ashford Trust and Ashford Prime have 143 hotels with more than 31,000 rooms and approximately $6 billion in assets. In addition to Ashford Trust and Ashford Prime, Ashford also has a securities investment subsidiary called Ashford Investment Management, which is an alternative investment management firm that specializes in creating investment strategies focused on the real estate, REIT, hospitality and leisure sectors.
Remington is a hotel property and project management company with over 40 years of experience in the lodging industry. It currently operates 93 hotels in 28 states with almost 18,000 hotel rooms and approximately 8,000 associates.