AINC - Ashford's portfolio company Remington Hotels acquires Chesapeake Hospitality for $15.8M

Ashford (NYSE:AINC) announced that its wholly-owned portfolio company, Remington Hotels acquired privately held Chesapeake Hospitality, a premier third-party hotel management company. The initial consideration stands at $15.75M payable with $6.3M in cash and $9.45M of a new Series CHP Convertible Preferred Unit, which will pay a 7.28% annual dividend and have a $117.50 conversion price per share. Chesapeake will also have the ability to earn up to $10.25M of additional consideration based on its base management fee contribution for TTM periods ending March 2024 and March 2025 for a total potential consideration of $26M. Ashford expects $5.3M of EBITDA contribution for FY24, which would represent an acquisition multiple of 4.9x EBITDA. The strategic transaction is expected to increase the scale and scope of Remington's hotel management business while expanding Remington's geographic footprint to complementary Midwestern markets. With the acquisition, Remington's mix of third party hotels will increase from ~20% to ~40%; combined company

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Ashford's portfolio company Remington Hotels acquires Chesapeake Hospitality for $15.8M