Shares of Ashford Hospitality Trust (NYSE: AHT) had fallen more than 29% as of 11:30 a.m. EDT after the company announced preliminary revenue per available room (RevPAR) for the second quarter of 2021, and a 1-for-10 reverse stock split.
Ashford Hospitality Trust, a real estate investment trust (REIT) that primarily invests in upscale hotels, announced RevPAR of $91.27 for the month of June, up 256% from June 2020, but down 37% from June 2019. It's also up from RevPAR of $75.66 for May 2021.
In other news, Ashford announced a 1-for-10 reverse stock split after market close July 2. What that means is that for every 10 shares investors own, they will instead have one share, thereby reducing the existing share count. So, if you own 1,000 shares of Ashford, you'll own 100 shares once the split occurs. The split doesn't change the value of the company, but will increase the share price.
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Why Shares of Ashford Hospitality Group Are Getting Crushed Today