Ashford Inc. has signed a definitive agreement to acquire the hotel management business of privately-held Remington Holdings, LP. The deal, which is expected to close in the fourth quarter of 2019, is subject to approval by the company’s stockholders, the receipt of an acceptable private letter ruling from the IRS, and customary closing conditions.
Under the terms of the agreement, Ashford will acquire Remington’s hotel management business for a purchase price of $275 million, payable by the issuance of $275 million of a new Series D Convertible Preferred Stock. After the completion of this transaction, Ashford will add hotel property management to its growing list of hotel-related businesses, which already includes hotel asset management, Premier Project Management, J&S Audio Visual, OpenKey, Pure Wellness, RED Hospitality & Leisure, and Lismore Capital.
Remington is an independent hotel management company with over 40 years of and is owned by Monty J. Bennett and Archie Bennett, Jr., the company’s chairman and ceo and his father, respectively. Remington’s hotel management business provides hotel management services for both Ashford Hospitality Trust, Inc. and Braemar Hotels & Resorts, Inc. Remington’s portfolio consists of almost 90 hotels with over 17,400 rooms of full-service and select-service properties representing over a dozen brands across 28 states as well as the District of Columbia.
Photo of The Ashton Hotel: Courtesy of Remington Holdings