Ashford Hospitality Trust

Capital allocation is constrained by leverage and external advisory agreements. Asset sales used to reduce mortgage debt are sensible, and the Highland pool was refinanced on August 7, 2026, addressing the last 2026 maturity.

However, the Fourth Amended and Restated Advisory Agreement includes a termination fee computed as 30 years of foregone Adjusted EBITDA discounted at 2 percent and other provisions that can consume value in change‑of‑control or foreclosure scenarios.

The suspension of preferred dividends while fee structures remain in place highlights adverse alignment for common equity. Occasional ATM issuance further dilutes. Overall history and structure score poorly on our quality and alignment yardsticks.