IRVING, Texas–FelCor Lodging Trust Incorporated (NYSE:FCH)’s Board of Directors today sent the following letter to Montgomery J. Bennett, Chairman of Ashford Hospitality Trust (NYSE:AHT), regarding AHT’s proposal to combine its business with FelCor. The full text of the letter is as follows:
February 27, 2017
Ashford Hospitality Trust, Inc. 14185 Dallas Parkway, Suite 1100 Dallas, Texas 75254 Attention: Montgomery J. Bennett, Chairman
Dear Monty:
We listened with great interest to the Ashford Hospitality Trust (“AHT”) earnings conference call last Friday. In particular, we were encouraged by CEO Douglas Kessler’s statement that AHT would be willing to engage on the possibility of a cash transaction.
FelCor has consistently communicated its concerns regarding both the inadequate value and uncertainty of AHT's all-stock, fixed exchange ratio proposal. Those concerns were underscored by the decrease in the market value of AHT’s shares last week once the full details of the proposal were made public. However, an all or substantially all cash proposal provides much greater comfort and certainty and could alter our analysis of AHT’s proposal. If AHT is willing to consider making such a revised proposal, FelCor stands ready to re-engage with AHT as soon as is practicable.
Further, and as I proposed to both you and Doug in separate conversations prior to Ashford’s February 21 public announcement, FelCor is willing to provide additional information, including property level information, to AHT provided AHT also shares reciprocal property level information with FelCor. We note that AHT has not provided any such information to date, and we welcome the opportunity to review it.
I will call you today to discuss the potential to re-engage on this basis. I look forward to that discussion and hope it will prove productive for both of our companies.
Very truly yours,
FELCOR LODGING TRUST INCORPORATED
By: Steven R. Goldman
