Ashford Hospitality Trust Announces $17M Advisory Fee Waiver, Share Purchase Agreement with Ashford Inc., and Termination of ATM Program
Ashford Hospitality Trust (AHT) announced that its advisor, Ashford Inc., has agreed to waive approximately $17 million in advisory fees over the next six months. Additionally, Ashford Inc. committed to purchasing 2.5% of AHT's outstanding common stock each quarter for three years through open market transactions. The fee waiver and share purchase agreement were approved by independent directors with the goal of improving liquidity and aligning advisor interests with shareholders. If Ashford Inc. fails to complete its quarterly purchases, it must provide a credit against future advisory fees at 150% of the volume-weighted average price for each unpurchased share. The company also terminated its at-the-market (ATM) equity offering program with Virtu Americas LLC, ending its ability to issue additional common stock through this method. These actions aim to strengthen AHT's financial position and reinforce long-term commitment from Ashford Inc.