Condor Hospitality to sell hotels to Blackstone Real Estate

Condor Hospitality Trust Inc. has entered into an agreement with affiliates of Blackstone Real Estate Partners to sell its entire portfolio of hotels in a $305 million transaction. This is an all-cash transaction without the assumption of any existing debt. Completion of the transaction, which is expected to occur in the fourth quarter, is subject to customary closing conditions, including the approval of the company’s shareholders.

“We believe that this is an extremely attractive transaction for the company’s shareholders with a highly credible and very experienced buyer,” said Bill Blackham, CEO, Condor. “Both Blackstone Real Estate Partners and the company have teams that have been working and will continue to work towards a timely and successful consummation of the transaction. The company portfolio is highly attractive as evidenced by the strong buyer interest that surfaced during the marketing process and appears to fit very well into the investment profile of our buyer.”

The buyer has entered into voting agreements with certain shareholders of the company that hold approximately 60% of the outstanding common shares pursuant to which such holders have agreed to vote their shares in favor of the transaction.

“We are pleased to have reached agreements with Condor and a majority of its shareholders,” said Scott Trebilco, managing director, Blackstone Real Estate Partners. “The portfolio is complementary to our existing select-service hotels and is demonstrating strong performance, which we look forward to building on as travel continues to recover.”

Condor also said its board of directors has unanimously adopted a plan of liquidation and dissolution. The plan of liquidation contemplates an orderly wind down of the company’s business affairs. Following the closing of the sale of the hotel portfolio and the payment of outstanding liabilities, along with the taking of other actions specified in the plan of liquidation, including reserving for certain contingent liabilities and claims, Condor intends to distribute certain net proceeds from the sale of the hotel portfolio to its shareholders in one or more liquidating distribution installments. The implementation of the plan of liquidation is conditioned on obtaining approval of the company’s shareholders.