Raging Capital Management LLC and its chairman, chief investment officer and managing member, William Martin, disclosed beneficial ownership of 7.9%, or 2,019,442 shares of Ashford Hospitality Prime Inc.'s outstanding common stock.
The total percentage of shares is based upon 25,644,258 Ashford Hospitality shares outstanding as of Aug. 5.
Raging Capital Management is the investment manager of Raging Capital Master Fund Ltd., which has delegated to Raging Capital Management the sole authority to vote and sell the securities it holds in Ashford Hospitality under an investment management agreement signed in November 2012.
The purchase price of the 2,019,442 shares owned directly by Raging Capital Master amounts to roughly $31.1 million, including brokerage commissions. The shares were purchased with the working capital of Raging Capital Master.
According to an ownership statement, Raging Capital Management and Martin acquired the shares because they believe that at the time of acquisition the shares were "undervalued and represented an attractive investment opportunity."