Bennett: Weisman Bid Undervalues Ashford Prime

Monty Bennett, Ashford Prime’s chairman and CEO.

DALLAS—The Weisman Group’s unsolicited offer to buy Ashford Hospitality Prime undervalues the company, chairman and CEO Monty Bennett wrote in a letter made public late Monday afternoon. “Ashford Prime has one of the highest quality hotel portfolios in the public lodging REIT universe and we will not sell below full and fair value,” Bennett wrote in his letter to Lyle Weisman, the Weisman Group’s manager.

Weisman’s all-cash offer equates to $20.25 per common share, a 79% premium on the June 7 closing price of $11.32, Bloomberg Business reported earlier this month. “We understand that your initial headline price of $20.25 per share is a gross number from which your suggested termination fee payable to our advisor, Ashford Inc., must be subtracted,” wrote Bennett. “However, we believe the fee that Ashford Prime is contractually obligated to pay Ashford Inc. upon a sale may be materially higher than the $70 million in your proposal, as has been stated many times publicly.”