Ashford Hospitality Trust, Inc. (AHT) announced that its Board of Directors has established a special committee to evaluate strategic alternatives aimed at maximizing shareholder value, including the possibility of a transaction. The committee will consider asset sales, equity or debt restructuring, and potential mergers or acquisitions, and will report its findings to the full board and shareholders in the near term.
The announcement also confirmed that AHT has terminated its Series L and M non‑traded preferred stock offering and suspended redemptions of all outstanding non‑traded preferred stock. The move limits liquidity for preferred stockholders and signals the company’s intent to focus on core operations and potential transaction opportunities.
Management highlighted the “Grow AHT” initiative as a key driver of recent operational improvements. The initiative, launched in late 2024, has targeted a $50 million EBITDA improvement, with a $30 million run‑rate gain reported in Q1 2025 and a $50 million target in Q4 2024. Despite these gains, the company’s Q3 2025 earnings report showed a net loss of $69.0 million, down from a $63.2 million loss in Q3 2024, and a 1.5% year‑over‑year decline in comparable RevPAR. The loss reflects ongoing headwinds in the hotel market and the impact of the company’s aggressive asset‑sale strategy, which generated $69.5 million in November 2025 to retire debt.
CEO Stephen Zsigray said 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.” He added that the board’s decision to form the committee stems from frustration over the discrepancy between the value of the underlying portfolio and the market value of common stock, underscoring the company’s belief that the market is undervaluing its assets.
The market reacted strongly to the announcement, with investors viewing the special committee as a credible step toward unlocking hidden value. The prospect of a transaction to bridge the valuation gap was the primary driver of the positive reaction, reflecting confidence that the company’s asset‑sale momentum and balance‑sheet strength could support a premium transaction or a more favorable capital structure.
The special committee’s mandate signals a potential shift in AHT’s strategic direction. By exploring a range of alternatives, the company aims to address the valuation gap, improve liquidity for preferred stockholders, and potentially deliver a transaction that could enhance shareholder value beyond the current market price. The move also highlights the company’s ongoing focus on operational efficiency and debt reduction, positioning it to capitalize on favorable market conditions for hotel assets.
The announcement underscores the importance of the company’s strategic initiatives and the market’s sensitivity to actions that could materially alter shareholder value. Investors will closely monitor the committee’s findings and any subsequent actions that could reshape AHT’s capital structure and growth trajectory.
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