ASHFORD HOSPITALITY TRUST ANNOUNCES APPROVED REDUCTION IN BOARD AND MANAGEMENT COMPENSATION
Ashford Hospitality Trust (NYSE: AHT) has announced significant compensation reductions as part of its 'GRO AHT' initiative, aimed at achieving $50 million in annual run-rate EBITDA improvement. The changes include:
- 50% reduction in board member compensation
- Board size reduced from nine to seven members
- Over 50% reduction in executive management and associate incentive awards
These compensation adjustments are expected to generate more than $11 million in incremental EBITDA. Combined with previously announced ancillary revenue initiatives, the company projects over $14 million in incremental EBITDA towards its $50 million target. The measures reflect Ashford Trust's commitment to financial discipline and operational efficiency in its upper-upscale, full-service hotel portfolio.
Ashford Hospitality Trust (NYSE: AHT) ha annunciato significative riduzioni delle compensazioni come parte della sua iniziativa 'GRO AHT', mirata a raggiungere un miglioramento dell'EBITDA annuale di 50 milioni di dollari. Le modifiche includono:
- Riduzione del 50% della compensazione per i membri del consiglio di amministrazione
- Dimensione del consiglio ridotta da nove a sette membri
- Riduzione di oltre il 50% dei premi di incentivazione per la direzione esecutiva e per i collaboratori
Questi aggiustamenti retributivi dovrebbero generare oltre 11 milioni di dollari in EBITDA incrementale. Combinati con le iniziative di ricavi accessori precedentemente annunciate, l'azienda prevede oltre 14 milioni di dollari in EBITDA incrementale verso il suo obiettivo di 50 milioni di dollari. Le misure riflettono l'impegno di Ashford Trust per la disciplina finanziaria e l'efficienza operativa nel suo portafoglio di hotel di fascia alta e a servizio completo.
Ashford Hospitality Trust (NYSE: AHT) ha anunciado reducciones significativas en las compensaciones como parte de su iniciativa 'GRO AHT', con el objetivo de lograr una mejora de 50 millones de dólares en EBITDA anual. Los cambios incluyen:
- Reducción del 50% en la compensación de los miembros de la junta
- Tamaño de la junta reducido de nueve a siete miembros
- Reducción de más del 50% en los premios de incentivos para la alta dirección y los asociados
Se espera que estos ajustes de compensación generen más de 11 millones de dólares en EBITDA incremental. Combinados con las iniciativas de ingresos auxiliares anunciadas previamente, la empresa proyecta más de 14 millones de dólares en EBITDA incremental hacia su objetivo de 50 millones de dólares. Las medidas reflejan el compromiso de Ashford Trust con la disciplina financiera y la eficiencia operativa en su cartera de hoteles de lujo y de servicio completo.
Ashford Hospitality Trust (NYSE: AHT)는 연간 5천만 달러의 EBITDA 개선을 목표로 하는 'GRO AHT' 이니셔티브의 일환으로 보상 감축을 발표했습니다. 변경 사항은 다음과 같습니다:
- 이사회 구성원 보상 50% 감소
- 이사회 규모를 9명에서 7명으로 축소
- 경영진 및 직원 인센티브 보상 50% 이상 감소
이러한 보상 조정은 1100만 달러 이상의 추가 EBITDA를 생성할 것으로 예상됩니다. 이전에 발표된 부수적 수익 이니셔티브와 결합하여, 회사는 5천만 달러 목표를 향해 1400만 달러 이상의 추가 EBITDA를 예상하고 있습니다. 이러한 조치는 Ashford Trust의 재정적 규율과 운영 효율성에 대한 헌신을 반영합니다.
Ashford Hospitality Trust (NYSE: AHT) a annoncé des réductions significatives des compensations dans le cadre de son initiative 'GRO AHT', visant à atteindre une amélioration de 50 millions de dollars du EBITDA annuel. Les changements incluent :
- Réduction de 50 % de la compensation des membres du conseil d'administration
- Taille du conseil réduite de neuf à sept membres
- Réduction de plus de 50 % des primes d'incitation pour la direction et les associés
Ces ajustements de compensation devraient générer plus de 11 millions de dollars d'EBITDA supplémentaire. Combiné avec les initiatives de revenus accessoires précédemment annoncées, l'entreprise prévoit plus de 14 millions de dollars d'EBITDA supplémentaire vers son objectif de 50 millions de dollars. Ces mesures reflètent l'engagement d'Ashford Trust envers la discipline financière et l'efficacité opérationnelle dans son portefeuille d'hôtels haut de gamme et à service complet.
Ashford Hospitality Trust (NYSE: AHT) hat signifikante Kürzungen der Vergütungen im Rahmen seiner Initiative 'GRO AHT' angekündigt, die darauf abzielt, eine jährliche Verbesserung des EBITDA um 50 Millionen Dollar zu erreichen. Zu den Änderungen gehören:
- 50%ige Reduzierung der Vergütung für Mitglieder des Vorstands
- Reduzierung der Vorstandszahl von neun auf sieben Mitglieder
- Über 50%ige Reduzierung der Anreizvergütungen für das Management und die Mitarbeiter
Diese Vergütungsanpassungen sollen mehr als 11 Millionen Dollar an zusätzlichem EBITDA generieren. Zusammen mit zuvor angekündigten Nebeneinnahmeinitiativen prognostiziert das Unternehmen über 14 Millionen Dollar an zusätzlichem EBITDA auf dem Weg zu seinem Ziel von 50 Millionen Dollar. Die Maßnahmen spiegeln das Engagement von Ashford Trust für finanzielle Disziplin und operative Effizienz in seinem Portfolio von gehobenen, vollservierten Hotels wider.
- Expected $11M+ incremental EBITDA from compensation reductions
- Total $14M+ EBITDA improvement identified towards $50M target
- 50% reduction in board and executive compensation demonstrates cost discipline
- Board size optimization from 9 to 7 members improves efficiency
- Significant reduction in management incentives may impact talent retention
- Only 28% ($14M of $50M) of targeted EBITDA improvement identified so far
Insights
Ashford Hospitality Trust's announcement of significant compensation reductions represents a substantial cost-cutting measure in its broader "GRO AHT" strategic initiative. The 50% reduction in board compensation, coupled with a streamlined board (reduced from nine to seven members) and the 50%+ cut in management incentive awards, is projected to yield
These aggressive compensation adjustments signal management's commitment to financial discipline, which is particularly critical given AHT's relatively small market capitalization of
Investors should monitor how these changes affect operational execution and whether AHT can identify and implement the remaining
The dramatic governance overhaul at Ashford Hospitality Trust represents a shareholder-aligned restructuring with both symbolic and material financial implications. The 50% reduction in board compensation paired with a 22% board size reduction (from nine to seven members) signals extraordinary measures to address operational efficiency. Similarly, the 50%+ reduction in executive and associate incentive awards demonstrates management's willingness to share in the financial sacrifice needed for corporate recovery.
These governance changes are projected to yield
While these measures demonstrate decisive leadership action, they also introduce potential governance risks. A smaller board may face challenges in committee staffing and oversight capacity, potentially concentrating power among fewer directors. Additionally, the substantial reduction in incentive compensation creates retention risk for key executives during a critical transformation period.
The effectiveness of these governance changes will ultimately be measured by whether they represent tactical cost-cutting or a strategic realignment of corporate priorities. Shareholders should monitor whether these compensation adjustments are accompanied by corresponding improvements in operational strategy and asset management to address the fundamental challenges facing the company's hotel portfolio.
Compensation for board members was reduced by
Together with the previously announced implementation of ancillary revenue initiatives, the Company expects to realize more than
These changes align with Ashford Trust's strategic vision to optimize performance, improve financial results, and create long-term value for shareholders. The Company continues to partner with its property managers and its advisor, Ashford Inc., on a number of initiatives as part of the "GRO AHT" strategy and will provide additional updates as the plan is further executed.
Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing predominantly in upper-upscale, full-service hotels.
Forward-Looking Statements
Certain statements and assumptions in this press release contain or are based upon "forward-looking" information and are being made pursuant to the safe harbor provisions of the federal securities regulations. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may," "will," "should," "potential," "intend," "expect," "anticipate," "estimate," "approximately," "believe," "could," "project," "predict," or other similar words or expressions. Additionally, statements regarding the following subjects are forward-looking by their nature: Implementation of our "GRO AHT" plan; expected EBITDA growth from our "GRO AHT" plan; our business and investment strategy; anticipated or expected purchases, sales or dispositions of assets; our projected operating results; completion of any pending transactions; our plan to pay off strategic financing; our ability to restructure existing property-level indebtedness; our ability to secure additional financing to enable us to operate our business; our understanding of our competition; projected capital expenditures; and the impact of technology on our operations and business. Such forward-looking statements are based on our beliefs, assumptions, and expectations of our future performance taking into account all information currently known to us. These beliefs, assumptions, and expectations can change as a result of many potential events or factors, not all of which are known to us. If a change occurs, our business, financial condition, liquidity, results of operations, plans, and other objectives may vary materially from those expressed in our forward-looking statements. You should carefully consider this risk when you make an investment decision concerning our securities. These and other risk factors are more fully discussed in the Company's filings with the SEC.
The forward-looking statements included in this press release are only made as of the date of this press release. Investors should not place undue reliance on these forward-looking statements. We will not publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances, changes in expectations or otherwise except to the extent required by law.
Non-GAAP Financial Measures
The Company prepares its public financial statements in conformity with accounting principles generally accepted in
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SOURCE Ashford Hospitality Trust, Inc.
FAQ
How much EBITDA improvement is Ashford Hospitality Trust targeting with the GRO AHT initiative?
What are the specific compensation cuts announced by AHT in February 2025?
How much incremental EBITDA will AHT generate from the compensation reductions?
What is the total expected EBITDA improvement from AHT's recent initiatives?
