In a big change in the real estate business, Blackwells Capital is fighting to kick Monty Bennett off the boards of Ashford Hospitality Trust and Braemar Hotels and Resorts.
This tough move by the investors is because they think Bennett is doing a bad job and taking advantage of shareholders for his gain. Blackwells says Bennett’s companies are paying way more in advisory fees while their stock prices are crashing.
Blackwells, which owns a small part of both companies, is pointing out how much the advisory fees have shot up while the stock prices have dropped a lot.
On the other side, Bennett is suing Blackwells, saying they’re not following the rules and are trying to take over without telling everyone. All this is happening while Ashford is having a hard time with its money like its stocks getting taken off the market, selling properties, and losing them to the bank.
The fight has also gone public, with Bennett using his newspaper to attack Blackwells and its lawyers. This has made things even more tense, leading Blackwells to sue Bennett for using the media to sway shareholders.
In the middle of all this drama, Blackwells has offered to buy Braemar for $4.50 a share, showing just how serious things are between them and Bennett.
This battle between Blackwells Capital and Monty Bennett isn’t just a fight between companies; it shows bigger problems in the real estate investment trust (REIT) business. It’s about how companies are run, who has a say, and dealing with agreements outside the company.
What happens here could affect how other REITs are managed and how issues between shareholders and leaders are handled. It also shows how much power investors like Blackwells have in shaping how companies are run in this industry.
