CHICAGO--(BUSINESS WIRE)--A hedge recently disclosed by The Inland Group founder raises questions for new investors in Xenia Hotels & Resorts [NYSE:XHR], according to a new report by UNITE HERE. Xenia was spun-off of Inland American earlier this year. In light of the put, the new report takes a critical look at hotel REIT prices as well as Xenia’s top management and board, growth strategy, and corporate governance.
The report includes questions raised with Xenia’s board about the put, including:
- What is the strike/exercise price on the put?
- Does this put amount to a vote of no confidence in Xenia?
- Does Inland American (a 5% shareholder) also have a put on Xenia stock?
- Did Xenia’s executives have knowledge of the put?
- Does Xenia’s board have a policy prohibiting insiders from buying derivatives that bet on the decline of Xenia’s stock price?
“We think this put is telling. The Inland Group’s founder arguably knows as much about Xenia’s business as any insider. Affiliates of The Inland Group charged Inland American investors over $1.4 billion in fees to manage the untraded REIT before Xenia’s spin-off. We encourage investors to look at the put in the context of whether this is an indication of where prices may be headed,” said Mike French of UNITE HERE.
To view or download the free report, go to www.XeniaREITWatch.org.
