Ashford Hospitality Trust's board of directors has formed a special committee to evaluate strategic alternatives to maximize shareholder value, including a potential transaction. The real estate investment trust is focused on investing predominantly in upper upscale, full-service hotels.
The company is "highly encouraged by our success to date in executing our plan to drive outsized EBITDA growth, strategically sell assets, and strengthen our balance sheet," President and CEO Stephen Zsigray said in a statement.
"However, we remain frustrated by the discrepancy between the value of our underlying portfolio and the market value of our common stock, and the Board has tasked the Special Committee with proactively exploring alternatives to bridge that gap."
In conjunction with forming the special committee, the company has also terminated the current offering of its Series L and M non-traded preferred stock and suspended redemptions for all of its outstanding non-traded preferred stock.
Ashford announced last month that it would sell three hotels — Le Pavillon in New Orleans, the Embassy Suites Austin Arboretum and the Embassy Suites by Hilton Houston – in deals totaling $69.5 million. The proceeds of the November deals are expected to help retire debt.
Earlier this year, Braemar Hotels & Resorts put itself up for sale. The board of directors of the REIT initiated a process for the immediate sale of the company, including nine resorts and five urban properties, citing inability to "flourish in today's market environment."