As part of its asset management efforts,
Ashford Hospitality Trust Inc.
) recently inked a deal to convert Crowne Plaza Beverly Hills to
a Marriott Hotel. In addition, it disclosed that in the recent
months, it converted 8 hotels from brand-managed to
As per the deal terms, following the expiration of the
existing Crowne Plaza license agreement in Mar 2015, the
258-room, Crowne Plaza Beverly Hills will be converted to a
Marriott. The renovation that is projected to be around $25
million will include revamp of the guestrooms and public areas
along with improvements in the heating, ventilation and air
conditioning system. Subsequent to the conversion, the property
will continue to be managed by Remington Lodging &
Ashford also disclosed that at May end, the company
accomplished the shift of management from Marriott to Remington
Lodging & Hospitality at seven of its select-service hotels
and one full-service hotel. The franchise deals include product
The conversions are aimed at increasing Ashford's top line and
creating more cost savings. Hence, we remain encouraged and
believe that this will propel its profitability going forward. It
is expected to result in long-term value creation and hence such
activities are viewed positively.
In July, Ashford reported its second-quarter 2013 results.
Aided by growth in revenue per available room, the company's
adjusted funds from operations (FFO) came in at 55 cents per
share, beating both the Zacks Consensus Estimate as well as the
prior-year quarter figure by 5.8%.
Ashford Hospitality Trust is a real estate investment trust
(REIT) and is engaged in investing in the hospitality industry
primarily within the United States. Ashford Trust currently has a
Zacks Rank #3 (Hold).
A number of other REITs that are performing well and deserve a
Winthrop Realty Trust
), that has a Zacks Rank #1 (Strong Buy) as well as
Highwoods Properties Inc.
), both carrying a Zacks Rank #2 (Buy).
ASHFORD HOSPTLY (AHT): Free Stock Analysis
CUBESMART (CUBE): Free Stock Analysis Report
WINTHROP REALTY (FUR): Free Stock Analysis
HIGHWOODS PPTYS (HIW): Free Stock Analysis
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FFO, a widely used metric to gauge the performance of REITs,
is obtained after adding depreciation and amortization and other
non-cash expenses to net income.