NexPoint buys Condor Hospitality Trust

George Sell George Sell Uploaded 23 July 2019

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US: Canada-listed REIT NexPoint Hospitality Trust (NHT) has agreed to buy Condor Hospitality Trust, an owner of extended stay and select service hotels.

NHT’s operating partnership (OP) will acquire all of the outstanding equity interests of Condor and its OP via a merger valued at US$318 million. The deal comes less than a year after Condor began a strategic review process.

NHT will acquire 15 select-service and extended-stay hotels, representing 1,908 guest rooms across eight US states. The transaction will expand NHT’s geographic footprint into Georgia, Kansas, Kentucky, Maryland, Mississippi and South Carolina and increase its presence in Florida and Texas. Condor's properties are flagged under various Marriott, Hilton, and IHG brands.

Once the deal has closed, NHT’s gross asset value is expected to increase to approximately $700 million.

NHT CEO Jim Dondero said: “The transaction instantly expands NHT’s geographical footprint and balances NHTs strategic value-add portfolio with durable, core, extended-stay hotels. We believe the future for quality extended-stay and select-service hotels remains bright.”

“We are pleased with our strategic-alternatives process concluding with a transaction we believe is attractive for our shareholders,” said Bill Blackham, Condor’s CEO. “NHT is acquiring our very high quality portfolio of outperforming select-service hotels and Condor shareholders are receiving a liquidity event at an attractive premium to our unaffected share price prior to the transaction announcement.”

 

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