On Friday the Dallas hotel-focused real estate investment trust declared a 1-for-10 reverse stock split.
Preliminary figures show revPAR declined 46% from the second quarter of 2019, the year before the COVID pandemic, and more than quadrupled (up 372%) from the second quarter of 2020, as the pandemic raged.
The improved preliminary revPAR results for the quarter "are driven by pent-up leisure demand," said Rob Hays, Ashford's chief executive.
"We continue to be pleased with the recovery trends we are seeing at our hotels, and with our geographically diverse portfolio with high exposure to transient leisure customers, we believe we are well positioned to capitalize on this recovery."
Meanwhile, the company’s 1-for-10 stock split will be effective at the close of business July 16, Ashford said.
"The company is committed to make owning Ashford Trust's common stock as shareholder friendly as possible," Hays said. The reverse split "is another important step for the company and its stockholders to optimize our position."
Ashford shares recently traded at $2.92, down 26%. The reverse split will reduce the number of shares outstanding by 10 times and increase the stock price by 10 times.
In other real estate news, last month Real Money contributor Doug Kass wrote, “I have been warning that much higher home prices (and reduced affordability) would create a cyclical peak in residential real estate (homebuilder stocks have begun to roll over recently).”
Also last month, Nerd Wallet addressed six mistakes to avoid when you sell your home. They include “thinking of it as [still] your home,” and “selling as is without an inspection.”