Ashford Hospitality Trust Inc. (NYSE: AHT) dropped 36% after announcing a preliminary RevPAR of around $91.27 for June, a 256% YoY increase. For May, its RevPAR was $75.66, which is a 414% Yoy Increase. For the second quarter of 2021, the company expected an increase of 372% in RevPAR for all its hotels.
Pent up leisure demand driving RevPAR results
The company’s CEO and President Rob Hays said, “I am pleased to report these improved preliminary RevPAR results for the second quarter which are driven by pent-up leisure demand. We continue to be pleased with the recovery trends we are seeing at our hotels, and with our geographically diverse portfolio with high exposure to transient leisure customers, we believe we are well positioned to capitalize on this recovery.”
Ashford announces reverse stock split
In a bid to make the company shareholder-friendly, its board recently approved a reverse stock split for AHT’s common shares at a 1 to 10 ratio. Effective the completion date of the reverse split, each outstanding and issued common shares of the company will be converted into a tenth of a share of the common stock. The company anticipates the reverse split to be effective on July 16, and the common stock will start trading o slit adjusted basis on the NYSE exchange on July 18, 2021.
Hays said, “The Company is committed to making owning Ashford Trust’s common stock as shareholder friendly as possible, and we believe implementing a reverse stock split is another important step for the Company and its stockholders to optimize our position.” Most importantly, the reverse share split will benefit all shareholders and address a range of items impacting its options and common stock.