Ashford Inc. Waives $17M in Fees, Pledges Share Buy for AHT
Ashford Inc. will forgo $17M in advisory fees over six months and commit to purchasing shares in Ashford Hospitality Trust, which is also ending its ATM program.
Ashford Hospitality Trust (NYSE: AHT) disclosed Monday that its external advisor, Ashford Inc., has agreed to waive roughly $17 million in advisory fees that would otherwise accrue over the next six months, a move designed to provide near-term financial relief to the Dallas-based hotel real estate investment trust.
Alongside the fee waiver, Ashford Inc. committed to purchasing 2.5% of the company's shares, signaling a vote of confidence from the advisor in the REIT's outlook. The dual announcement underscores a coordinated effort between the two affiliated entities to shore up AHT's balance sheet without immediately tapping equity markets.
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The company also confirmed it is terminating its at-the-market equity offering program, commonly known as an ATM program. ATM programs allow companies to sell shares incrementally into the open market; ending the arrangement suggests management does not intend to raise capital through ongoing share issuances at current price levels, or is pivoting to alternative support mechanisms such as the advisor's direct purchase commitment.
Taken together, the three-part arrangement — fee forgiveness, insider share acquisition, and ATM termination — reflects a strategy aimed at reducing cash outflows, aligning advisor incentives with shareholders, and limiting dilution risk in the near term. Hospitality REITs have faced persistent pressure from elevated interest rates and uneven hotel demand recovery, making cost management and capital structure decisions especially consequential.
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