This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Industry Participants Move To Emulate Ashford's Revolutionary External Advisory Agreement

Stocks in this article: AHT

DALLAS, Sept. 26, 2013 /PRNewswire/ -- Ashford Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the "Company") today announced that REIT industry participants have already moved to emulate the revolutionary external advisory agreement that it has developed for its spin-off of Ashford Prime.  While other externally-advised REITs are changing their advisory agreements to look more like Ashford Trust's and to be more aligned with shareholders, the structure that Ashford Trust has developed for its spin-off of Ashford Prime continues to be the industry benchmark in terms of advisor and management alignment with shareholders.

Some of the features that continue to differentiate the Ashford Prime external advisory agreement from other external advisory agreements in the REIT industry include:

  • External advisor owned by a publicly traded company.
  • Base management fee calculated on market-based total enterprise value.
  • Incentive fee based upon total stockholder return outperformance compared to a peer group.
  • Up to 50% of the incentive fee may be paid in common stock or in common units of the Ashford Prime operating partnership, at Ashford Prime's discretion and subject to certain limitations.
  • Significant advisor and employee ownership, the majority of which will be partnership units which will not have any voting power on matters voted on by stockholders.
  • Advisory agreement can be terminated for a fee upon a change of control of Ashford Prime.

"We decided on the externally-advised structure for Ashford Prime for several reasons.  The structure enables investors to benefit from the experience of a management team with one of the best track records in our sector, will reduce the G&A expense burden by avoiding duplication, and provides for management incentives only in the event of outperformance versus  a defined peer group," commented Monty J. Bennett, Ashford Trust's Chairman and Chief Executive Officer.  "While we have already seen some other REIT participants move to copy this revolutionary structure, we still believe ours is the most shareholder-friendly and provides the strongest alignment with shareholders in the REIT space.  We look forward to completing the spin-off of Ashford Prime sometime in the fourth quarter."

Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing opportunistically in the hospitality industry across all segments and at all levels of the capital structure primarily within the United States.

Ashford Hospitality Prime will be a conservatively capitalized real estate investment trust (REIT) focused on investing in high RevPAR full-service and urban select-service hotels located predominantly in domestic and international gateway markets.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs