DALLAS, Nov. 14 2014 /PRNewswire/ -- Ashford Hospitality Trust ( NYSE: AHT) ("Ashford Trust" or the "Company") today highlighted the performance of Ashford Inc. ( NYSE: AINC), which began operating as an independent company following the successful completion of its spin-off from Ashford Trust on November 12, 2014.
Since shares of Ashford Inc. began trading "when issued" on November 7, 2014, the value of Ashford Inc. stock has increased from $25.00 per share to $63.05 per share reflecting a 152% increase in value. The Company is confident that the separation of its asset management business into Ashford Inc. will continue to create significant value for shareholders, and believes the initial market reaction to the separation validates this position.
The Company believes that Ashford Inc. is well positioned for growth with advisory agreements in place with two publicly traded REITs, Ashford Trust and Ashford Prime. In addition, the Company is confident that Ashford Inc. will benefit from the success of Ashford Trust and Ashford Prime, and will drive additional value across the Ashford portfolio of companies.
The Company noted that other parties recognize the value creating potential of Ashford Inc. In its November 7, 2014, report, Glass Lewis & Co discussed the value-creating potential of Ashford Inc.:1
"We also recognize that Ashford Trust shareholders will maintain at least a 40% stake in Ashford Inc. immediately following the spin-off, leaving them with substantial exposure to Ashford Inc.'s revenue streams and growth prospects. Overall, in light of the Company's performance track record under the board's stewardship, we believe the board has earned continued deference from shareholders at this time with regard to strategic and organizational decisions, such as the spin-off."
Another leading independent governance advisor, Egan-Jones Proxy Services, joined Glass Lewis in recognizing the value creating potential of Ashford Inc.:
"We take this position because we believe the spin-off of Ashford Inc. will result in significant value creation for the shareholders, and any delay in the timing of the spin-off will impact the ability to capitalize on current opportunities, which could result in the loss of enhanced value creating opportunities."
The Board has unanimously determined that the hotel union's solicitation statement is contrary to the best interests of the Company and its stockholders, and vigorously opposes their solicitation of written request cards. Accordingly, the Board recommends that shareholders do not sign any written request card sent by UNITE HERE. Whether or not shareholders have previously executed UNITE HERE's written request card, they may elect against the calling of a special meeting if they sign, date and deliver the BLUE Revocation Card to the Company's proxy solicitor, MacKenzie Partners Inc. ("MacKenzie Partners"), at 105 Madison Avenue, New York, NY 10016. Shareholders can contact MacKenzie Partners, Inc. toll-free at 1-800-322-2885 or 212-929-5500 or e-mail [email protected] if they have any questions or need assistance.
Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing opportunistically in the hospitality industry across all segments and at all levels of the capital structure primarily within the United States.
Important Additional Information:
Ashford Trust, its directors and certain of its officers and employees are participants in solicitations of Ashford Trust stockholders. Information regarding the names of Ashford's directors and executive officers and their respective interests in Ashford Trust by security holdings or otherwise is set forth in Ashford Trust's definitive revocation statement on Schedule 14A filed with the U.S. Securities and Exchange Commission (the "SEC") on November 12, 2014, the Company's proxy statement for its 2014 annual meeting of stockholders, filed with the SEC on April 14, 2014, as supplemented by the proxy information filed with the SEC on May 5, 2014. Additional information can be found in Ashford Trust's Annual Report on Form 10-K for the year ended December 31, 2013, filed with the SEC on March 3, 2014, its Quarterly Report on Form 10-Q for the quarter ended September 30, 2014, filed with the SEC on November 7, 2014, its Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, filed with the SEC on May 12, 2014 and its Quarterly Report on Form 10-Q for the quarter ended June 30, 2014, filed with the SEC on August 11, 2014. To the extent holdings of Ashford Trust's securities have changed since the amounts printed in the proxy statement for the 2014 annual meeting of stockholders, such changes have been reflected on Initial Statements of Beneficial Ownership on Form 3 or Statements of Change in Ownership on Form 4 filed with the SEC. These documents are available free of charge at the SEC's website at www.sec.gov.
This communication does not constitute an offer to buy or solicitation of an offer to sell any securities. This communication is not a substitute for any proxy statement, solicitation statement, registration statement, prospectus or other document Ashford may file with the SEC. STOCKHOLDERS ARE ENCOURAGED TO READ ANY ASHFORD PROXY STATEMENT, SOLICITATION STATEMENT (INCLUDING ANY SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS THAT ASHFORD TRUST MAY FILE WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Stockholders will be able to obtain, free of charge, copies of any solicitation statement and any other documents filed by Ashford Trust with the SEC at the SEC's website at www.sec.gov. In addition, copies will also be available at no charge at the Investors section of Ashford's website at www.ahtreit.com.
This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date they were first issued and are based on current expectations as well as the beliefs and assumptions of management. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Ashford Trust's control. Ashford Trust expressly disclaims any intent or obligation to update these forward-looking statements except as required by law. Additional information concerning these and other risks can be found in press releases issued by Ashford Trust, as well as Ashford's public filings with the SEC, including the discussion under the heading "Risk Factors" in Ashford's most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. Copies of Ashford's press releases and filings with the SEC, are available at www.ahtreit.com or you can contact the Ashford Investor Relations Department at 972-778-9487.
1 Permission to use quotation neither sought nor obtained
SOURCE Ashford Hospitality Trust, Inc.