INTERNATIONAL REPORT—NexPoint Hospitality Trust (NHT) and Condor Hospitality Trust Inc. executed a definitive agreement under which NHT’s operating partnership, NHT Operating Partnership LLC, will acquire all of the outstanding equity interests of Condor and its operating partnership by merger for $318 million.
NHT will acquire 15 select-service and extended-stay hospitality properties, representing 1,908 guestrooms across eight U.S. states, expanding its geographic footprint into Georgia, Kansas, Kentucky, Maryland, Mississippi and South Carolina, and increasing its presence in Florida and Texas. Following closing of the transaction, which is expected in the fourth quarter of 2019, NHT’s gross asset value is expected to increase to approximately $700 million.
“We’re excited about NexPoint Hospitality Trust’s strategic merger with Condor Hospitality Trust,” said NHT’s CEO Jim Dondero. “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.”
Bill Blackham, Condor’s CEO, commented: “We are pleased with our strategic alternatives process concluding with a transaction we believe is attractive for our shareholders. 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.”
KeyBanc Capital Markets Inc. is acting as financial advisor to Condor. Winston & Strawn LLP and Goodmans LLP are acting as legal counsel to NHT, and McGrath North Mullin & Kratz PC LLO is acting as legal counsel to Condor.