Ashford Hospitality Trust announced its largest third-party manager Remington has implemented property-level headcount reductions, reduced travel expenses, changed the PTO policy for field associates, and reduced contracted services and centralized expenses allocated to the company's properties as part of its ongoing efforts to enhance hotel EBITDA. Remington has declined to comment.
These expense reductions are expected to drive over $11 million in incremental Hotel EBITDA. Ashford said these moves are designed to help execute on its "GRO AHT" initiative aimed at driving $50 million in annual run-rate EBITDA improvement and significantly increasing shareholder value. Combined with the previously announced implementation of ancillary revenue initiatives and corporate expense reductions, the company expects completed initiatives to contribute over $30 million per year in incremental EBITDA towards its $50 million goal.
These changes align with Ashford Trust's strategic vision to optimize performance, improve financial results and create long-term value for shareholders, according to the company. The company continues to partner with its property managers and its advisor, Ashford Inc., on a number of initiatives as part of the "GRO AHT" strategy and will provide additional updates as the plan is further executed.