Ashford Announces Acquisition Of Chesapeake Hospitality To Accelerate Growth Of Its Hotel Management Business

Ashford Inc. (NYSE American: AINC) ("Ashford" or the "Company") today announced that Remington Hotels ("Remington"), a dynamic, growing, independent hotel management company with over 40 years of experience in the hospitality business and a wholly-owned portfolio company of Ashford, has acquired privately held Chesapeake Hospitality ("Chesapeake"), a premier third-party hotel management company. Ashford is acquiring Chesapeake for an initial consideration of $15.75 million, payable with $6.3 million in cash and $9.45 million 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 $10.25 million of additional consideration based on its base management fee contribution for the trailing 12-month ("TTM") periods ending March 2024 and March 2025 for a total potential consideration of $26 million. Should Chesapeake's performance result in the full earnout for the seller, Ashford expects $5.3 million of EBITDA contribution for the full year of 2024, which would represent an acquisition multiple of 4.9x EBITDA.