Dallas-based Ashford Inc. has completed the previously revealed combination with Remington Holdings, LP. The combination with Remington rapidly builds operating scale, increases the company’s earnings potential and facilitates additional growth from third-party hotel management business.
“This is a very compelling transaction for Ashford,” commented Monty J. Bennett, Ashford’s Chairman and Chief Executive Officer. “Adding this high-margin, low-capex, fee-for-service hotel management business to our platform immediately enhances our competitive position in the hospitality industry by adding hotel property management to our growing list of hotel-related businesses as well as expanding the breadth of services we offer to our advised REITs. With deep industry experience, we look forward to Remington further unlocking value in our platform by diversifying our earnings stream and, moving forward, expanding business to other third-party clients.”
Ashford provides global asset management, investment management and related services to the real estate and hospitality sectors.
When The REIT Wire first reported on the deal in June, we noted that “The proposed acquisition of Remington’s high-margin Hotel Management business will immediately add scale, diversification and an enhanced competitive position for Ashford in the hospitality industry, while also expanding the breadth of services we offer to our advised REITs.” That was according to Monty J. Bennett, Ashford’s Chairman and Chief Executive Officer. “With deep industry experience and mutual exclusivity agreements in place with our advised REITs, we believe the acquisition of Remington’s Hotel Management business represents a compelling opportunity for Ashford to further diversify its earnings stream and, moving forward, the potential to expand business to other third-party clients,” he said.