Condor Hospitality (AMEX:CDOR)
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3 Months : From Sep 2019 to Dec 2019
DALLAS and TORONTO, Sept. 23, 2019 /CNW/ -- NexPoint Hospitality Trust ("NHT") (TSX-V: NHT.U) announced today that the shareholders of Condor Hospitality Trust, Inc. ("Condor") (NYSE American: CDOR) approved the proposed acquisition by merger of Condor by NHT Operating Partnership, LLC, the operating partnership of NHT (the "Merger"). The Merger is currently expected to close during the fourth quarter of 2019, subject to the satisfaction of customary closing conditions.
Pursuant to the Merger, NHT will acquire 15 select-service and extended stay hospitality properties. The transaction is expected to increase NHT's gross asset value to approximately US$700 million. Additionally, the Merger provides other benefits such as scale, geographic diversification, brand diversification, more exposure to extended stay assets with higher occupancy and more stable cash flows, and a newer portfolio with upside revenue growth potential.
NexPoint Hospitality Trust is a publicly traded real estate investment trust, with its units listed on the TSX Venture Exchange under the ticker NHT.U. NHT is focused on acquiring, owning and operating well-located hospitality properties in the United States that offer a high current yield and in many cases, that are underperforming assets with the potential to increase in value through investments in capital improvements, a market-based recovery, brand repositioning, revenue enhancements, operational improvements, reducing expense inefficiencies, and exploiting excess land or underutilized space. NHT owns 11 branded properties sponsored by Marriott, Hilton and InterContinental Hotels Group, located across the U.S., specifically in the Seattle, Portland, Dallas, Nashville and St. Petersburg markets. NHT is externally advised by NexPoint Real Estate Advisors VI, L.P., an affiliate of Highland Capital Management, L.P., a leading global alternative asset manager and an SEC-registered investment adviser. For more information, visit www.nexpointhospitality.com.
About Condor Hospitality Trust, Inc.
Condor Hospitality Trust, Inc. is a self-administered real estate investment trust that specializes in the investment and ownership of upper midscale and upscale, premium-branded, select-service, extended-stay, and limited-service hotels in the top 100 Metropolitan Statistical Areas ("MSAs") with a particular focus on the top 20 to 60 MSAs. Condor currently owns 15 hotels in eight states. Condor's hotels are franchised by a number of the industry's most well-regarded brand families including Hilton, Marriott, and InterContinental Hotels Group.
This news release may contain forward-looking information within the meaning of applicable securities legislation, which reflects NHT's current expectations regarding future events and in some cases can be identified by terms such as "will", "may", "expected" and other similar expressions. Forward-looking information in this news release includes, but is not limited to, statements with respect to the anticipated closing of the Merger and the expected benefits to be realized by NHT as a result of the Merger. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond NHT's control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, risks related to the closing conditions of the Condor merger being satisfied and the Merger closing and a reasonably stable North American economy and stock market. Although the forward-looking information contained in this press release is based upon what the NHT's management believes to be reasonable assumptions, NHT cannot assure investors that actual results will be consistent with such information. Forward-looking information reflects current expectations of management regarding future events and operating performance as of the date of this press release. Such information involves significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking information, and a description of these factors can be found under "Risk Factors" in NHT's final prospectus dated March 27, 2019 and Management's Discussion and Analysis dated August 27, 2019, which are available on SEDAR (www.sedar.com).
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE NexPoint Hospitality Trust, Inc.