What happened Shares of real estate investment trust (REIT) Ashford Hospitality Trust (NYSE: AHT) dropped 17% in early trading on July 19. Roughly an hour into the trading day the stock was still down around 12%. There are two big factors here; one remains out of the hotel landlord's control and the other was well within it. So what First the easy news to digest. After the close on July 16, the end of the prior week, Ashford announced that its 1-for-10 reverse stock split had been completed. Technically speaking, a stock split doesn't change an investors ownership of a company, so all that happens is the stock price changes. A reverse split results in fewer shares outstanding and, thus, increases the share price. This is a desirable outcome because Ashford's stock price had been lingering at a very low level, which can dissuade investors from buying shares. The low level of the stock price, meanwhile, has been driven by the financial headwinds the REIT has been facing during the coronavirus pandemic (first quarter revenue was lower by nearly 60%). So, all in, this reverse stock split is really a net negative and investors, not surprisingly, aren't pleased. Image source: Getty Images. However, there's a second issue to look at. New variants of the coronavirus have resulted in an increasing incidence of COVID-19. That, in turn, appears to have some investors worried that a return to pre-pandemic normality will be slow and arduous. If that's the case, then Ashford's business-level recovery may not be as strong as some had been hoping. So, the very issue that led to the need for a reverse stock split is, at the very least, lingering. No wonder investors soured on the hotel owner today. Now what Ashford Hospitality Trust is not a good choice for risk averse investors. It is, without question, a turnaround situation, which is an area of investing that only aggressive types should roam. While things are getting better, the REIT's recovery still faces headwinds and, frankly, the fact that a reverse stock split was needed at all is not a good sign. 10 stocks we like better than Ashford Hospitality TrustWhen our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* They just revealed what they believe are the ten best stocks for investors to buy right now... and Ashford Hospitality Trust wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of June 7, 2021 Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source