Ashford Hospitality Trust Inc. (NYSE:AHT) shares surged 65.92% to $2.97 after the bell on Tuesday following a liquidity-boosting announcement.
The Texas-based real estate investment trust, which invests mainly in upscale, full-service hotels, announced that its advisor, Ashford Inc., agreed to waive about $17 million in advisory fees and buy AHT common stock each quarter. The company also terminated its at-the-market equity offering program.
$17M Fee Waiver Boosts Liquidity
Ashford irrevocably waived base and incentive advisory fees for services from November 2026 through April 2027. The company expects savings of about $2.60 per common share.
Amish Gupta, vice chairman and lead independent director, said, “The fee waiver keeps approximately $17 million in the Company over the next six months.”
Share Purchase Agreement Ties Advisor to Shareholders
Ashford committed to buying 2.5% of AHT’s outstanding common stock in the open market each quarter. The company said that, with about 6.47 million shares outstanding, the initial commitment equals roughly 162,000 shares.
Ashford has six months after each quarter ends to complete its purchases. If it falls short, it must give AHT a credit against future advisory fees, the company said. The credit equals 150% of the stock’s volume-weighted average price over that six-month period for each share not purchased.
At-the-Market Program Ended
Ashford also announced it terminated its April 2022 equity distribution agreement with New York-based institutional broker-dealer Virtu Americas LLC.
The independent directors approved the agreements. The company said it will provide further details in a Securities and Exchange Commission filing.
Trading Metrics, Technical Analysis
Ashford Hospitality Trust has a market capitalization of $11.58 million, a 52-week high of $5.29 and a 52-week low of $1.74.
The Relative Strength Index (RSI) of AHT stands at 16.93.
The stock has fallen 64.69% over the past 12 months.
Currently, AHT is trading near its 52-week low.
Price Action: In the regular session on Tuesday, the small-cap stock closed at $1.79, down 2.72%, according to Benzinga Pro data.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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