Ashford To Acquire Project Management Company

Ashford owns the Hotel Sofitel in Chicago.

DALLAS—Ashford Inc. has signed a definitive agreement to acquire the project management business of privately held Remington Holdings LP, a hotel property and project management company. The transaction, which is expected to close during the third quarter of 2018, is subject to approval by the company’s stockholders and customary closing conditions. Upon the unanimous recommendation of the special committee, the independent and disinterested members of the company’s board of directors unanimously approved the transaction and recommended its approval by the company’s stockholders.

Ashford provides asset management, investment management and related services to the real estate and hospitality sectors. Under the terms of the agreement, the company will acquire Remington’s project management business for a total transaction value of $203 million. The purchase price will be paid by issuing voting, convertible preferred stock to the sellers. The newly created convertible preferred stock will have a conversion price of $140 per share (a 45% premium to the current trading level) and, if converted immediately after the consummation of the transaction, would convert into 1.45 million shares of common stock.