Hotel group Ashford returns payroll loans under protest
After concerted pressure on hotel group Ashford Inc. to return Paycheck Protection Program aid, the company has finally caved.
It will return nearly $60 million in loans after previously saying it would not do so.
It was one of several publically traded firms shamed in the media for accepting large loans while genuine small businesses struggled to get financial assistance.
Caving to pressure, the company will return the loan but maintains it has done nothing wrong.
"While we believed then and continue to believe today that we qualify for PPP loans based on the legislation and rule-making in place at the time our applications were submitted, continuous SBA rule changes and evolving opinions by Administration officials have led us to conclude that we may no longer qualify," it said.
It was under more scrutiny as Ashford’s CEO and chairman is Monty Bennett, a loyal Trump supporter who has donated to the president’s re-election campaign.
The company was able to get the loans by applying for them individually through each of its properties.
Affiliates Ashford Hospitality Trust and Braemer Hotels & Resorts operate more than 100 hotels on behalf of major brands like Ritz Carlton, and had actually applied for $126 million in SBA loans.
It has already furloughed about 90% of its workforce.
The public backlash has been intense on Ashford and large public companies and Treasury Secretary Steven Mnuchin said companies had until May 7 to voluntarily return the funds if they do not meet the rules.
Firms that do not return money ‘may be subject to criminal liability.’
Ashford said it had ‘no intention of crowding out any business from gaining equal access to the PPP funds, and could not have known that the program would be insufficient to cover the needs of all other businesses in the nation.’
Cruise operator Lindblad Expeditions has returned $6.6 million it received from the PPP.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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