Ashford Prime to Offer 8.0 Million Shares Of Common Stock

DALLAS—Ashford Hospitality Prime, Inc. has commenced an underwritten public offering of eight million shares of common stock. The company expects to grant the underwriters a 30-day option to purchase up to an additional 1.2 million shares of common stock. The offering is subject to market and other conditions.

Ashford Prime intends to use the net proceeds of the offering to acquire the Sofitel Chicago Water Tower and the Pier House Resort, and for general corporate purposes and working capital, including the acquisition of additional properties. Pier House, which is located in Key West, FL, is currently owned by Ashford Trust. Sofitel Chicago Water Tower has 415 rooms on 32 floors.

BofA Merrill Lynch and Morgan Stanley are acting as the joint book-running managers for the offering. KeyBanc Capital Markets, Credit Agricole CIB, Credit Suisse, Baird and Stifel are acting as senior co-managers. FBR, JMP Securities, MLV& Co. and Craig-Hallum Capital Group are acting as co-managers.

A registration statement relating to the offered shares has been filed with the Securities and Exchange Commission but has not yet been declared effective. The offered shares may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.