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Ashford Hospitality Trust Inc . (NYSE:AHT), currently trading at $8.28 with a market capitalization of $47.66 million, has announced an amendment to its bylaws, effectively lowering the quorum requirement for its 2025 annual stockholders’ meeting. The decision, made by the company’s board of directors on Monday, aims to ensure sufficient attendance for the meeting to proceed.
The Dallas-based real estate investment trust, which specializes in the hospitality industry, cited an increase in retail shareholder numbers over recent years as a contributing factor to the change. The company, which has seen its stock price decline 46.73% over the past year despite a 15.58% gain year-to-date, faces evolving shareholder dynamics. Retail brokers no longer cast discretionary votes without specific instructions from retail shareholders, which has influenced the company’s approach to meeting quorum.
Previously, a majority of votes entitled to be cast was necessary to meet quorum. However, the amendment reduces this requirement to at least one-third for the upcoming annual meeting. This adjustment aligns with the provisions of the Maryland General Corporation Law and is tailored solely for the 2025 annual meeting. According to InvestingPro, the company maintains a FAIR financial health score and is scheduled to report earnings on February 27, 2025.
The amendment took effect on February 25, 2025, and is detailed in the company’s recent SEC filing. Ashford Hospitality Trust’s proactive measure ensures that the annual meeting can proceed as planned, despite the evolving composition of its shareholder base.
This move reflects the company’s responsiveness to changing shareholder dynamics and the regulatory environment. While the amendment is specific to the 2025 annual meeting, it may set a precedent for how the company and others in the industry manage shareholder engagement in the future.
The information is based on a press release statement from Ashford Hospitality Trust Inc. and the company’s recent SEC filing.
In other recent news, Ashford Hospitality Trust reported a net loss of $131.1 million for the fourth quarter of 2024. Despite the losses, the company is implementing strategic initiatives, such as the "Grow AHT" initiative, which aims to add $50 million to corporate EBITDA. Ashford (NYSE:AINC) has also converted two hotels into Marriott brands, expecting significant RevPAR premiums, which could enhance their market positioning. The company’s total debt stands at $2.6 billion, with a significant portion on floating rates, which could impact future interest costs. In terms of asset management, Ashford has completed notable conversions at the La Concha Hotel in Key West and La Pavillon Hotel in New Orleans, both of which have exceeded initial performance expectations.
Furthermore, Ashford completed a refinancing of 16 assets, enabling the repayment of corporate strategic financing, and sold the Courtyard Boston Downtown for $123 million. The company has announced a capital expenditure budget of $95 to $115 million for 2025, aimed at portfolio optimization and deleveraging. Analysts have shown interest in Ashford’s strategic initiatives and the potential impact on future earnings, with discussions focusing on the company’s debt structure and hotel conversions.
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