Dallas based Braemar Hotels & Resorts Inc. recently revealed that it has entered into a stock purchase agreement with Ashford Inc. under which Ashford purchased 19,897 shares of its common stock for $30 per share, resulting in total proceeds of approximately $0.6 million to the company.
According to a prepared statement, the purchase price equates to a premium of approximately 20% based on yesterday’s closing price of Ashford common stock. Due to the parameters of the private letter ruling expected to be received from the Internal Revenue Service by the Company, Ashford is only able to acquire the shares held by the Company’s taxable REIT subsidiary.
Additionally, according to a prepared statement, the company announced that it currently plans to distribute the remaining 174,983 shares of Ashford common stock that it currently owns on a pro-rata basis to Braemar common shareholders and unitholders.
The pro-rata distribution of Ashford shares is contingent upon, and will occur immediately prior to, Ashford’s planned acquisition of Remington Holdings, L.P.’s hotel management business. That proposed acquisition, which was previously announced on June 3, 2019, is expected to close in the fourth quarter of 2019. The transaction remains subject to approval by Ashford’s stockholders and customary closing conditions. The stockholder vote has been set for October 24, 2019, and the Company expects to receive the official issued private letter ruling related to the Remington transaction from the IRS very soon. Additional information regarding the planned distribution will be provided at a later date.
“We are pleased to announce this planned disposition strategy for our shares of Ashford common stock, which releases unrecognized value to the Company and its shareholders,” commented Richard J. Stockton, Braemar’s President and Chief Executive Officer.
Braemar Hotels & Resorts is a real estate investment trust focused on investing in luxury hotels and resorts.