Ashford Hospitality Prime to Consider Sale

Luxury hotelier Ashford Hospitality Prime Inc. said Friday that it is exploring strategic alternatives, including a sale of the company, less than two years after it was spun off from Ashford Hospitality Trust Inc.

The company said it has brought on Deutsche Bank Securities Inc. as a financial adviser. Ashford Prime noted that the review is in the early stages and there is no assurance the company will enter into a deal.

Shares of the company, down 28.6% this year, added 9.8% to $13.45 a share in premarket trading.

"We do not believe Ashford Prime's current share price accurately reflects the company's intrinsic value," Chief Executive Monty Bennett said in a news release. "While we are confident in our strategic plan, we have concluded that we should consider all other opportunities to maximize shareholder value."

Ashford Prime is a real-estate investment trust that invests in luxury hotels in resorts and gateway markets. Its properties include the Hilton La Jolla Torrey Pines Hotel in California, the Pier House Resort & Spa in Key West, Fla., and the Courtyard Seattle Downtown Hotel in Washington.

Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com

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(END) Dow Jones Newswires

August 28, 2015 08:55 ET (12:55 GMT)

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