DALLAS, March 7, 2022 /PRNewswire/ -- Ashford
Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the
"Company") announced today that it filed a registration statement
on Friday, March 4 with the U.S.
Securities and Exchange Commission ("SEC") for its Series K and
Series J Redeemable Preferred Equity Stock ("Non-Traded Preferred
Equity"). The registration statement provides for issuance of
Non-Traded Preferred Equity in a primary offering over the course
of up to three years from the effective date. The Series K and
Series J Redeemable Preferred Stock are expected to have an initial
annual dividend yield of 8% and 8.2% respectively, and the Company
will also offer a Dividend Reinvestment Plan for investors in the
Non-Traded Preferred Equity. The registration statement is subject
to review by the SEC. Subject to such SEC review and other
conditions, the Company expects to commence issuing limited amounts
of the Non-Traded Preferred Equity beginning in the third quarter
of 2022.
"We're pleased to announce the filing of the S-3 for the future
offering of the Non-Traded Preferred Equity," commented
Rob Hays, Ashford Trust's President
and Chief Executive Officer. "Demonstrating Ashford Trust's
strategic pivot from defense to offense, we believe this offering
will provide an attractive cost of capital and allow us to
accretively grow our portfolio over time, subject to future market
conditions." Mr. Hays added, "As an owner of institutional quality,
geographically diverse lodging assets with a successful track
record of optimizing the performance of our hotels, we believe this
additional capital source can provide a long-term competitive
advantage for our platform. Additionally, we have structured this
security to have various equity-like terms and features, providing
capital that can be used not only for accretive acquisitions for
our common stockholders but also to accomplish long-term goals of
improving our balance sheet. Further updates on our progress in
respect to this capital raising effort will be available in our SEC
filings, company presentations, and discussed on our earnings
conference calls in due course."
The Company has filed a registration statement (including a
preliminary prospectus) with the SEC for the offering to which this
communication relates. Before you invest, you should read the
prospectus in that registration statement and other documents the
issuer has filed with the SEC for more complete information about
the issuer and this offering. You may get these documents for free
by visiting EDGAR on the SEC web site at www.sec.gov.
Alternatively, the Company, the dealer manager or any dealer
participating in the offering will arrange to send you the
prospectus if you request it by calling toll-free
1-888-490-4292.
A registration statement relating to these securities has been
filed with the SEC but has not yet become effective. These
securities may not be sold nor may offers to buy be accepted prior
to the time the registration statement becomes effective.
This press release does not constitute an offer to sell the
securities and is not soliciting an offer to buy the securities in
any state or jurisdiction in which such an offer or solicitation
would be unlawful.
Ashford Hospitality Trust is a real estate investment trust
(REIT) focused on investing predominantly in upper upscale,
full-service hotels.
Forward-Looking Statements
Certain statements and assumptions in this press release
contain or are based upon "forward-looking" information and are
being made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements in this press release include, among others, statements
about the Company's strategy and future plans. These
forward-looking statements are subject to risks and uncertainties.
When we use the words "will likely result," "may," "anticipate,"
"estimate," "should," "expect," "believe," "intend," or similar
expressions, we intend to identify forward-looking statements. Such
statements are subject to numerous assumptions and uncertainties,
many of which are outside Ashford Trust's control.
These forward-looking statements are subject to known and
unknown risks and uncertainties, which could cause actual results
to differ materially from those anticipated, including, without
limitation: the impact of COVID-19, and the rate of adoption and
efficacy of vaccines to prevent COVID-19, on our business and
investment strategy; our ability to repay, refinance, or
restructure our debt and the debt of certain of our subsidiaries;
anticipated or expected purchases or sales of assets; our projected
operating results; completion of any pending transactions; our
understanding of our competition; market trends; projected capital
expenditures; the impact of technology on our operations and
business; general volatility of the capital markets and the market
price of our common stock and preferred stock; availability, terms
and deployment of capital; availability of qualified personnel;
changes in our industry and the markets in which we operate,
interest rates or the general economy; and the degree and nature of
our competition. These and other risk factors are more fully
discussed in Ashford Trust's filings with the Securities and
Exchange Commission.
The forward-looking statements included in this press release
are only made as of the date of this press release. Such
forward-looking statements are based on our beliefs, assumptions,
and expectations of our future performance taking into account all
information currently known to us. These beliefs, assumptions, and
expectations can change as a result of many potential events or
factors, not all of which are known to us. If a change occurs, our
business, financial condition, liquidity, results of operations,
plans, and other objectives may vary materially from those
expressed in our forward-looking statements. You should carefully
consider these risks when you make an investment decision
concerning our securities. Investors should not place undue
reliance on these forward-looking statements. The Company can give
no assurance that these forward-looking statements will be attained
or that any deviation will not occur. We are not obligated to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or circumstances,
changes in expectations, or otherwise, except to the extent
required by law.
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SOURCE Ashford Hospitality Trust, Inc.