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Douglas Kessler’s resignation is only part of a portfolio of luxury hotels linked to Monty Bennett receiving tens of millions of dollars in small business aid.

Cameron Sperance

Dallas-based president and CEO of Ashford Hospitality Trust steps down after the company received a rejection of the $ 30 million it received from the paycheck protection program, which is part of the $ 2 trillion coronavirus relief fund spent in March.

Tens of thousands of small businesses are still waiting to receive funds. Companies like Shake Shack and Ruth’s Chris Steak House have received, then promised to repay, PPP loans.

But despite the departure of CEO Douglas Kessler and the controversy, Ashford Hospitality executives are keeping the company and two related companies qualified for the program and will keep the money. The details of Kessler’s resignation are still unclear.

Kessler will remain with the company until May 14, when J. Robison Hays, Chief Strategy Officer of Ashford, will assume his role as President and CEO.

“I would like to thank Douglas for his invaluable leadership and contributions to Ashford Trust during his considerable tenure,” Ashford Hospitality Trust Board Chairman Monty Bennett said in a statement. “He has been an amazing colleague and has contributed to the growth of Ashford Trust since its IPO in 2003. We wish him well in his future endeavors.

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The change in leadership still affects just one of three companies linked to Bennett that are under pressure to benefit from a program to help small businesses during the coronavirus.

Ashford Hospitality Trust, Braemar Hotels & Resorts – where Bennett is chairman of the board – and Ashford Inc. – where Bennett is CEO and chairman of the board – have collectively received nearly $ 59 million in PPP loans, according to the filings with US Securities and the Foreign Exchange Commission. Businesses issued a joint statement saying they would not return the money to the Small Business Administration.

Since mid-March, companies have laid off or laid off 90 percent of their workforce due to the coronavirus hindrance. The Small Business Administration has not publicly released a list of PPP loan recipients, but Ashford says the hospitality industry received less than 3% of the $ 350 billion first round of PPP loans.

“Our companies have not prevented small businesses from receiving funds, as some media have suggested,” the statement continued. “The PPP program was specifically aimed at companies like ours.

After the first round of PPP funding ended, the U.S. government injected an additional $ 310 billion earlier this month. Industry advocates and politicians are calling for more oversight to ensure the last slice of money gets to small businesses.

Travel industry groups like the US Travel Association and the American Hotel & Lodging Association Thursday called on the government to discourage unaffected businesses to apply for PPP loans. US Treasury Secretary Steven Mnuchin said earlier this week that the government would conduct a full audit of any business taking more than $ 2 million from the small business loan program.