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Ashford Hospitality Trust Inc . (NYSE:AHT), a real estate investment trust with a market capitalization of $45 million and annual revenue of $1.17 billion, has announced amendments to its advisory agreement and employee compensation arrangements. According to InvestingPro analysis, the company currently maintains a current ratio of 2.12, indicating sufficient liquidity to meet short-term obligations. The changes, which involve a limited waiver and an amendment to the advisory agreement, were made public through a recent SEC filing.
On Monday, Ashford Trust entered into a Limited Waiver Under Advisory Agreement with its operating partnership, TRS, Ashford Inc (NYSE:AINC). (the Advisor), and Ashford Hospitality Advisors LLC. This waiver allows the company to award cash incentive compensation to employees and representatives of the Advisor during the first half of 2025, which was previously restricted under the existing Advisory Agreement.
In addition to the waiver, the parties involved also agreed to Amendment No. 3 to their Third Amended and Restated Advisory Agreement. This amendment extends the period during which the sale or disposition of certain properties, specifically the Highland Portfolio and JPM8 hotel properties, will not be considered in the numerator for calculating a potential change of control of the company. The new outside date is extended from November 30, 2025, to March 31, 2026.
The SEC filing also included reference exhibits detailing the agreements and amendments, ensuring transparency for investors and stakeholders. These changes reflect Ashford Trust’s strategic adjustments to its compensation and asset management strategies within the framework of its advisory relationship. InvestingPro analysis reveals the company faces significant challenges, with a weak Financial Health Score of 1.63 out of 5, suggesting investors should closely monitor these strategic developments. For deeper insights, investors can access the comprehensive Pro Research Report, which provides detailed analysis of AHT among 1,400+ US stocks.
Ashford Hospitality Trust specializes in the investment and operation of full-service upscale and upper-upscale hotel properties in the United States. The company’s shares are traded on the New York Stock Exchange under the ticker AHT. InvestingPro has identified several key factors affecting the company, including high price volatility and challenges with profitability, with 10 additional exclusive insights available to subscribers.
The information disclosed is based on statements from a press release.
In other recent news, Ashford Hospitality Trust reported a significant net loss of $131.1 million for the fourth quarter of 2024, translating to $23.83 per diluted share. Despite these losses, the company is actively implementing strategic initiatives, such as the "Grow AHT" initiative, which aims to improve corporate EBITDA by $50 million. Additionally, Ashford Trust announced cost reduction measures expected to save over $4 million annually as part of its broader strategy to enhance shareholder value. In terms of financial restructuring, the company completed the refinancing of 16 assets, which contributed to a reduction in its strategic financing obligations.
Ashford Trust also reported a full-year net loss of $82.5 million but showed positive signs with an adjusted EBITDAre of $45.2 million for Q4 and $235.9 million for the full year. The company is focusing on hotel transformations, with recent conversions of properties into Marriott brands expected to yield RevPAR premiums. Furthermore, Ashford Trust announced an amendment to its bylaws to lower the quorum requirement for its 2025 annual stockholders’ meeting, aiming to adapt to the evolving shareholder base. These developments reflect Ashford Trust’s efforts to navigate financial challenges and position itself for future growth.
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