Sessa Capital to nominate 5 directors to Ashford Hospitality Prime's board
Jan 15 (Reuters) - Activist investor Sessa Capital LP said it would nominate five directors for election at real estate investment trust Ashford Hospitality Prime Inc's 2016 shareholder meeting to speed up a stalled strategic review process.
Ashford Hospitality Prime, spun off from Ashford Hospitality Trust Inc in 2013, has been exploring strategic alternatives, including a sale, since August.
Shares of Ashford Hospitality Prime, which invests in luxury hotels, were down 8.5 percent in afternoon trading on Friday.
Sessa Capital, the company's fourth-largest shareholder with an 8.2 percent stake, said an overhaul of the board was also required "to remedy poor corporate governance and conflicts of interest".
The hedge fund said Ashford Hospitality Prime amending an advisory agreement with Ashford Inc to impose a "large termination fee" if shareholders elect directors not acceptable to the asset management services provider "undercuts the integrity of the strategic review process".
Ashford Hospitality Prime CEO Monty Bennett is the largest shareholder in Ashford Inc.
Ashford Hospitality Prime said in a statement it was committed to maintaining an open dialogue with stockholders. (Reporting by Radhika Rukmangadhan in Bengaluru)
© Thomson Reuters 2016 All rights reserved.