UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported): August 3, 2018
ASHFORD HOSPITALITY TRUST, INC.
(Exact name of registrant as specified in its charter)
Maryland |
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001-31775 |
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86-1062192 |
14185 Dallas Parkway, Suite 1100 |
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75254 |
Registrants telephone number, including area code: (972) 490-9600
Check the appropriate box if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Company under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933(§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 8.01 Other Events.
Ashford Hospitality Trust, Inc. (the Company) is filing as Exhibit 8.1 hereto the opinion of Hunton Andrews Kurth LLP with respect to certain tax matters in connection with the Companys filing with the Securities and Exchange Commission pursuant to Rule 424(b) of Amendment No. 1 dated August 3, 2018 to the Companys prospectus supplement dated December 11, 2017 and prospectus dated September 28, 2017.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit |
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Exhibit Description |
8.1 |
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Opinion of Hunton Andrews Kurth LLP with respect to tax matters |
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23.1 |
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Consent of Hunton Andrews Kurth LLP (included in its opinion filed as Exhibit 8.1) |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: August 3, 2018
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ASHFORD HOSPITALITY TRUST, INC. | |
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By: |
/s/ Robert G. Haiman |
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Robert G. Haiman |
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Executive Vice President & General Counsel |
Hunton Andrews Kurth LLP | |
1445 Ross Avenue, Suite 3700 | |
Dallas, TX 75202 | |
+1 214 979 3000 Phone | |
+1 214 880 0011 Fax | |
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HuntonAK.com |
August 3, 2018
Ashford Hospitality Trust, Inc.
14185 Dallas Parkway, Suite 1100
Dallas, TX 75254
Ladies and Gentlemen:
We have acted as special United States federal income tax counsel to Ashford Hospitality Trust, Inc., a Maryland corporation (the Company), in connection with the preparation of the Additional Material Federal Income Tax Considerations included in Amendment No. 1 (Amendment No. 1), dated on or about the date hereof to prospectus supplement (the Prospectus Supplement) dated December 11, 2017, with respect to the offer and sale of the shares of common stock of the Company with an aggregate public offering price of $100,000,000 and a prospectus (the Base Prospectus) dated September 28, 2017, included in a registration statement, No. 333-220459 (the Registration Statement) on Form S-3 filed by the Company with the Securities and Exchange Commission (the SEC), with respect to the offer and sale of various debt and equity securities with an aggregate public offering price of $500,000,000. You have requested our opinion as to certain United States federal income tax matters in connection with the Registration Statement.
In connection with our opinion, we have examined and relied upon the following:
1. the Companys Articles of Amendment and Restatement, filed July 28, 2003, the Certificate of Correction to Correct an Error, in the form filed with the State Department of Assessments and Taxation of Maryland on August 7, 2003, and as amended by Amendment No. 1 filed with the State Department of Assessments and Taxation of Maryland on May 13, 2015;
2. the Companys Articles Supplementary (Series A Preferred Stock), in the form filed with the State Department of Assessments and Taxation of Maryland on September 21, 2004;
3. the Companys Articles Supplementary (Series B-1 Preferred Stock), in the form filed with the State Department of Assessments and Taxation of Maryland on December 29, 2004;
4. the Companys Articles Supplementary (Series B-2 Preferred Stock), in the form filed with the State Department of Assessments and Taxation of Maryland on December 29, 2004;
ATLANTA AUSTIN BANGKOK BEIJING BOSTON BRUSSELS CHARLOTTE DALLAS DUBAI HOUSTON LONDON LOS ANGELES
MIAMI NEW YORK NORFOLK RALEIGH/DURHAM RICHMOND SAN FRANCISCO THE WOODLANDS TYSONS WASHINGTON, DC
5. the Companys Articles Supplementary (Series C Preferred Stock), in the form filed with the State Department of Assessments and Taxation of Maryland on April 10, 2007;
6. the Companys Articles Supplementary (Series D Preferred Stock), in the form filed with the State Department of Assessments and Taxation of Maryland on July 17, 2007; the Companys Articles Supplementary Establishing Additional Shares of Series D Preferred Stock, in the form filed with the State Department of Assessments and Taxation of Maryland on September 21, 2010; the Companys Articles Supplementary Establishing Additional Shares of Series D Preferred Stock, in the form filed with the State Department of Assessments and Taxation of Maryland on September 30, 2011;
7. the Companys Articles Supplementary (Series E Preferred Stock), in the form filed with the State Department of Assessments and Taxation of Maryland on April 15, 2011; the Companys Articles Supplementary Establishing Additional Shares of Series E Preferred Stock, in the form filed with the State Department of Assessments and Taxation of Maryland on October 14, 2011;
8. the Companys Articles Supplementary (Series F Preferred Stock), in the form filed with the State Department of Assessments and Taxation of Maryland on July 8, 2016;
9. the Companys Articles Supplementary (Series G Preferred Stock), in the form filed with the State Department of Assessments and Taxation of Maryland on October 17, 2016;
10. the Companys Articles Supplementary (Series H Preferred Stock), in the form filed with the State Department of Assessments and Taxation of Maryland on August 18, 2017;
11. the Companys Articles Supplementary (Series I Preferred Stock), in the form filed with the State Department of Assessments and Taxation of Maryland on November 13, 2017;
12. the Companys Amended and Restated Bylaws, as amended by Amendment No. 1 and Amendment No. 2, and the Companys Second Amended and Restated Bylaws, as amended by Amendment No. 1 on October 26, 2014, Amendment No. 2 on October 19, 2015 and Amendment No. 3 on August 2, 2016, as filed with the SEC;
13. the Registration Statement, including the forms of the Amendment No. 1, Prospectus Supplement and Base Prospectus incorporated by reference therein;
14. the Certificate of Limited Partnership of Ashford Hospitality Limited Partnership (the Operating Partnership), effective May 13, 2003, as certified by the Secretary of State of the State of Delaware;
15. the Certificate of Amendment to the Certificate of Limited Partnership of the Operating Partnership, effective July 25, 2003, as certified by the Secretary of State of the State of Delaware;
16. the Amended and Restated Agreement of Limited Partnership of the Operating Partnership between Ashford OP General Partner LLC, as the general partner, and Ashford OP Limited Partner LLC, and certain officers, directors and others as the limited partners (the Operating Partnership Agreement), as amended through the relevant dates;
17. the Officers Certificate to Counsel for Ashford Hospitality Trust, Inc. Regarding Certain Income Tax Matters dated the date hereof and executed by a duly appointed officer of the Company (the AHT Officers Certificate);
18. the Officers Certificate to Counsel for Braemar Resorts & Hotels Inc. (formerly known as Ashford Hospitality Prime, Inc.) Regarding Certain Income Tax Matters dated the date hereof and executed by a duly appointed officer of Braemar Resorts & Hotels Inc. (the BHR Officers Certificate);
19. the Officers Certificate to Counsel for Ashford, Inc. Regarding Certain Income Tax Matters dated the date hereof and executed by a duly appointed officer of Ashford, Inc. (the Ashford Inc. Officers Certificate);
20. the form of leases entered into between any taxable REIT subsidiary of the Company and each partnership, limited liability company or trust in which the Company directly or indirectly owns an interest, the form of which is attached to the AHT Officers Certificate; and
21. such other documents, records and matters of law as we have deemed necessary or appropriate for rendering this opinion.
In our examination, we have assumed, without independent investigation or verification, (i) the authenticity and completeness of all documents reviewed by us in original or copy form, (ii) the conformity to the original documents of all documents reviewed by us as copies, including electronic copies and conformed copies, (iii) the due authorization, capacity, execution and delivery on behalf of the respective parties thereto of all documents referred to herein and the legal, valid and binding effect thereof on such parties, (iv) the genuineness of all signatures on documents examined by us, (v) the truth, accuracy and completeness of the information, factual matters, representations and warranties contained in the records, documents, instruments and certificates we have reviewed and (vi) that each unexecuted document submitted to us for our review will be executed in a form materially identical to the form we reviewed. We have further assumed that each of the parties to each of the documents referred to herein fully complies with all of its obligations thereunder and that there are no arrangements, understandings or agreements among any of the parties relating to such documents other than those evidenced by such documents. In connection with the opinion rendered below, we have also relied upon the correctness of the factual representations contained in the AHT Officers Certificate, the BHR Officers Certificate, and the Ashford Inc. Officers Certificate and have assumed that all representations made to the best knowledge of any person will be true, correct and complete as if made without that qualification. We note that the Company has engaged in transactions in connection with which we have not provided legal advice and which we may not have reviewed. We have also assumed that:
1. the Company has not made and will not make any amendments to its organization documents or allow amendments to the Operating Partnership Agreement or organization documents of its corporate subsidiaries or partnership, limited liability or trust agreements of its partnership, limited liability company or trust subsidiaries after the date of this opinion that would adversely affect the Companys qualification as a real estate investment trust (a REIT) under the Internal Revenue Code of 1986, as amended (the Code), for any taxable year;
2. Braemar Resorts & Hotels Inc. has not made and will not make any amendments to its organization documents or allow amendments to the Amended and Restated Agreement of Limited Partnership of Braemar Hospitality Limited Partnership (formerly known as Ashford Hospitality Prime Limited Partnership) between Braemar OP General Partner LLC (formerly known as Ashford Prime OP General Partner LLC), as the general partner, and Braemar OP Limited Partner LLC (formerly known as Ashford Prime OP Limited Partner LLC), and certain officers, directors and others as the limited partners, as amended through the date hereof, or organization documents of its corporate subsidiaries or partnership, limited liability or trust agreements of its partnership, limited liability company or trust subsidiaries after the date of this opinion that would adversely affect its qualification as a REIT under the Code;
3. no action has been or will be taken by the Company, the Operating Partnership, partnership, limited liability company and trust subsidiaries of the Company or corporate subsidiaries of the Company after the date hereof that would have the effect of altering the facts upon which the opinions set forth below are based;
4. commencing with formation of Braemar Resorts & Hotels Inc. on April 5, 2013 through December 31, 2013, Braemar Resorts & Hotels Inc. operated in a manner that makes the representations contained in the BHR Officers Certificate true for such year; and
5. no action has been or will be taken by Braemar Resorts & Hotels Inc., Braemar Hospitality Limited Partnership, partnership, limited liability company and trust subsidiaries of Braemar Resorts & Hotels Inc. or corporate subsidiaries of Braemar Resorts & Hotels Inc. after the date hereof that would have the effect of altering the facts upon which the opinions set forth below are based.
We have assumed that all facts, information, representations, covenants, agreements and other statements set forth in the documents referred to above were initially and are currently, and will continue to be, true, correct and complete without regard to any qualification as to knowledge or belief. We have assumed that none of the documents referred to above has been or will be amended, modified, supplemented or otherwise altered in any respect.
Based on the documents and assumptions set forth above and the representations set forth in the AHT Officers Certificate, the BHR Officers Certificate and the Ashford Inc. Officers Certificate, and the discussion in Amendment No. 1 under the caption Additional Material Federal Income Tax Considerations and in the Base Prospectus under the caption Material Federal Income Tax Considerations (each of which is incorporated herein by reference), we are of the opinion that:
(a) commencing with the Companys taxable year ended on December 31, 2003 through its taxable year ended December 31, 2017, the Company has been organized and operated in conformity with the requirements for qualification as a REIT under the Code, and the Companys organization and current and proposed method of operation will enable it to continue to meet the requirements for qualification and taxation as a REIT under the Code for its taxable year ending December 31, 2018 and thereafter;
(b) the Operating Partnership is classified as a partnership for United States federal income tax purposes and not as an association taxable as a corporation or a publicly traded partnership taxable as a corporation under the Code; and
(c) the descriptions of the law and the legal conclusions contained in Amendment No. 1 under the caption Additional Material Federal Income Tax Considerations and in the Base Prospectus under the caption Material Federal Income Tax Considerations are correct in all material respects, and the discussion thereunder expresses the opinion of Hunton Andrews Kurth LLP insofar as it relates to matters of United States federal income tax law and legal conclusions with respect to those matters.
It is not possible to predict whether the statements, representations, warranties or assumptions on which we have relied to issue this opinion will continue to be accurate in the future. The Companys qualification and taxation as a REIT under the Code has depended and will depend on the ability of the Company to meet on a prior and an ongoing basis (through actual quarterly and annual operating results, distribution levels, diversity of stock ownership and otherwise) the various qualification tests imposed under the Code, and upon the Companys utilizing any and all appropriate savings provisions (including the provisions of Sections 856(c)(6), 856(c)(7), and 856(g) of the Code and the provisions included in Section 856(c)(4) of the Code (flush language) allowing for the disposal of assets within 30 days after the close of a calendar quarter, and all available deficiency dividend procedures) available to the Company under the Code to correct violations of specified REIT qualification requirements of Sections 856 and 857 of the Code. Our opinion set forth above does not foreclose the possibility that the Company may have to utilize one or more of these savings provisions, which could require the Company to pay an excise tax or penalty tax (which could be significant in amount) in order to maintain its REIT qualification for a taxable year. We will not review on a continuing basis the Companys compliance with the documents or assumptions set forth above, or the representations set forth in the AHT Officers Certificate, the BHR Officers Certificate, and the Ashford Inc. Officers Certificate. Accordingly, no assurance can be given that the Companys operations for any given taxable year will satisfy the requirements for qualification and taxation as a REIT.
The foregoing opinions are limited to the United States federal income tax matters addressed herein, and no other opinions are rendered with respect to other United States federal tax matters or to any issues arising under the tax laws of any other country, or any state or locality. The foregoing opinions are based on current provisions of the Code and the Treasury regulations thereunder (the Regulations), published administrative interpretations thereof, and published court decisions, all of which are subject to change and new interpretation, both prospectively and retroactively. The Internal Revenue Service has not issued Regulations or
administrative interpretations with respect to various provisions of the Code relating to REIT qualification. No assurance can be given that the law will not change in a way that will prevent the Company from qualifying as a REIT. Although the conclusions set forth herein represent our best judgment as to the probable outcome on the merits of such matters, the Internal Revenue Service and the courts are not bound by, and may disagree with, the conclusions set forth herein. This opinion is rendered only as of the date hereof, and we assume no obligation to update our opinion to address other facts or any changes in law or interpretation thereof that may hereafter occur or hereafter come to our attention. If any one of the statements, representations, warranties or assumptions that we have relied upon to issue these opinions is incorrect in a material respect, our opinions might be adversely affected and may not be relied upon.
Except as provided in the next paragraph, this opinion letter may not be distributed, quoted in whole or in part or otherwise reproduced in any document, or filed with any governmental agency without our express written consent.
We hereby consent to the filing of this opinion as an exhibit to the Registration Statement. We also consent to the references to Hunton Andrews Kurth LLP under the caption Material Federal Income Tax Considerations in the Base Prospectus and under the caption Legal Matters in Amendment No. 1 and in the Base Prospectus. In giving this consent, we do not admit that we are in the category of persons whose consent is required by Section 7 of the Securities Act of 1933, as amended, or the rules and regulations promulgated thereunder by the SEC.
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Very truly yours, |
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/s/ Hunton Andrews Kurth LLP |
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