Ashford Hospitality Prime Inc. (AHP): Raging Capital Management Reports 7.9% Stake

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According to a recent 13D filing with the Securities and Exchange Commission, William Martin‘s Raging Capital Management has significantly raised its stake in Ashford Hospitality Prime Inc. (NYSE:AHP), as the fund now holds 2.02 million common shares of the company, which represent 7.9% of its float. The stake was raised from just 188,096 shares which Raging Capital held at the end of June, as per its latest 13F filing. The new filing also revealed that the fund acquired these shares because it found them undervalued, and that it holds the right to invest further in the company, or to sell its shares, upon the right opportunity. In addition, on October 4, representatives of Raging Capital started negotiations with the management of Ashford Hospitality Prime regarding the company’s business moves and possible means to increase shareholder value. The fund plans to continue these discussions with the company’s management.

Ashford Hospitality Prime Inc. (NYSE:AHP) is a real estate investment trust (REIT) that mainly invests in high revenue per available room, upper-upscale and luxury hotels and resorts. Over the past 12 months, the company’s stock has gained 0.07%. For the second quarter of 2016, Ashford Hospitality Prime disclosed earnings per share of $0.06 and revenue of $112.43 million, missing analysts’ estimates of $0.12 in EPS and $112.63 million in revenue.
William Martin Raging Capital Management

Of the 749 hedge funds in Insider Monkey’s database which filed 13Fs for the June quarter, ten reported holding long positions in Ashford Hospitality Prime Inc. (NYSE:AHP) as of June 30, up by one from March 31. Among the bullish investors were Steve Pei’s Gratia Capital, which held a position worth $14.95 million, J. Alan Reid, Jr.’s Forward Management, with a position valued at $3.27 million, Jim Simons’ Renaissance Technologies, Cliff Asness’ AQR Capital Management, and John Overdeck and David Siegel’s Two Sigma Advisors.

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You can access the original SEC filing by clicking here.

Ownership Summary Table

Name Sole Voting Power Shared Voting Power Sole Dispositive Power Shared Dispositive Power Aggregate Amount Owned Power Percent of Class
Raging Capital Management 2,019,442 2,019,442 2,019,442 7.9%
William C. Martin 2,019,442 2,019,442 2,019,442 7.9%

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Page 1 of 9 – SEC Filing

Washington, D.C. 20549
(Rule 13d-101)
§ 240.13d-2(a)
(Amendment No.  )1
Ashford Hospitality Prime, Inc.
(Name of Issuer)
Common Stock, $0.01 par value per share
(Title of Class of Securities)
044102 10 1
(CUSIP Number)
William C. Martin
Ten Princeton Avenue, P.O. Box 228
Rocky Hill, New Jersey 08553
(609) 357-1870

(Name, Address and Telephone Number of Person

Authorized to Receive Notices and Communications)
October 4, 2016
(Date of Event Which Requires Filing of This Statement)
If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§ 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box ¨.
Note:  Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits.  See § 240.13d-7 for other parties to whom copies are to be sent.
1              The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

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