NEW YORK (Reuters) - Real estate investment trust Ashford Hospitality Prime Inc <AHP.N> is in settlement talks with Sessa Capital to avoid a second proxy fight with the hedge fund company, according to people familiar with the matter.


Ashford's deadline for nominating directors to its board expires on Wednesday, adding pressure for the two sides to reach an agreement. If a deal is not struck, Sessa plans to nominate another slate of directors at the company's annual meeting, people familiar with the matter said.


Sessa lost its previous attempt at a proxy fight last year.


Ashford and Sessa could not immediately be reached for comment.


(Reporting by Michael Flaherty; Editing by Andrew Hay)