Ashford HospitalityPrime Inc. investor Sessa Capital (Master) LP continued its of the company, sendinga letter to fellow shareholders expressing disappointment with the of the REIT's process.
After seven months — the review process was in August 2015 — Ashford HospitalityPrime's board was able produce nothing more than "an array of unconvincing'initiatives,'" some of which it has attempted previously, without success,Sessa said, and others which only reverse actions the board "should never havetaken in the first place."
"Ashford Prime shareholders deserve better than a repackagedand rehashed set of proposals that depend on follow through from an incumbent boardthat hasn't produced in the past," the investor said.
One such initiative, the sale of four hotel assets, ultimatelyfails to address the "unusual and outsized" termination fee the companywould owe to adviser Ashford Inc.And directors have said that a sale will not proceed without a prior agreement thatthe termination fee will not be triggered.
"Why broadcast a plan the incumbent directors don't havepermission to implement?" Sessa said.
Expressing "little confidence" in the board's "recycledproposals," the investor againcalled for shareholders to oust the company's incumbent directors by electing Sessa's slate of nominees.