Condor Hospitality Trust Updates Actions Taken in Response to Changes in Economic and Industry Conditions Relating to COVID-19
April 09 2020 - 9:15AM
Business Wire
Condor Hospitality Trust (NYSE American: CDOR) (“Condor”), owner
of high-quality upper midscale and upscale hotels primarily located
in secondary markets, today provided an update on measures taken to
mitigate the impact on Condor and its hotels operations of recent
changes in the general economic and industry conditions relating to
COVID-19. Financial markets have been disrupted and there has been
an industry-wide falling off of hotel occupancies. As a result,
Condor is taking actions at the corporate and hotel levels
including, but not limited to:
- Amending its Bank Credit Facility to provide extensions options
out to March 1, 2022, waivers / modifications of certain covenants,
and establishment of interest reserves for near term debt service
payments as necessary.
- Asset management working with hotel management companies to
reduce all hotels operating expenses including, but not limited to,
closing off multiple floors, staffing reductions and furloughs,
utility consumption reductions, purchasing reductions and
eliminations, contract services reductions and eliminations, food
services closures, exercise facilities closures, and certain
reduction and elimination of certain marketing expenditures.
- Seeking potential alternative revenue sources through health
care providers, government agencies, universities and
airlines.
- Applications by Condor and its hotel operators for Paycheck
Protection Program loans authorized under the recently
congressionally approved CARES Act.
- Seeking potential recovery of certain losses through insurance
coverage.
- Pursuing corporate cost reductions, including staffing
reductions resulting in an approximately 20% decrease in
non-consulting expenses compared to historical operations.
- With its Bank Credit Facility amended, representing over 53% of
Condor’s loans, Condor has approached three of its remaining
lenders for potential modifications to provide interest reserves or
accruals during the second quarter. Two lenders representing
approximately 26% of Condor’s loans have agreed, while discussions
are in process with the third lender representing approximately 15%
of Condor’s loans.
- Capital improvement projects have been suspended except for
emergency circumstances and will remain on hold for immediate
future, with the potential for the suspension to continue through
2020.
“The continuing support of the Bank Credit Group and our other
lenders is greatly appreciated during this unprecedented period
with severe disruption and widespread uncertainty in the markets
and our own industry.” stated J. William Blackham, Condor’s Chief
Executive Officer. He went on to add “After a comprehensive review
of all of our hotels, the market conditions where located, and near
term projections, Condor has ceased temporarily operations at two
of its hotels and continues to monitor status of three additional
hotels that are potential candidates to be temporarily closed.
Since our portfolio is comprised of select service hotels, we have
been able to adjust operations quickly to existing conditions and
will be able to re-open any closed hotels quickly and efficiently
when market conditions justify commencing operations, however, our
current mission is to continue to take actions to contain costs and
maintain adequate liquidity.”
About Condor Hospitality Trust, Inc.
Condor Hospitality Trust, Inc. (NYSE American: CDOR) 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. The Company currently
owns 15 hotels in 8 states. Condor’s hotels are franchised by a
number of the industry’s most well-regarded brand families
including Hilton, Marriott, and InterContinental Hotels.
Forward-Looking Statement
This news release may contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements include all statements that are
not historical facts, and in some cases, can be identified by the
use of forward-looking terminology such as “may”, “will”, “expect”,
“intend”, “anticipate”, “estimate”, “believe”, “continue”,
“project”, “plan”, the negative version of these words or other
similar expressions. Readers are cautioned not to place undue
reliance on any such forward-looking statements.
These forward-looking statements are based on assumptions that
management has made in light of experience in the business in which
the Company operates, as well as management’s perceptions of
historical trends, current conditions, expected future
developments, and other factors believed to be appropriate under
the circumstances. These statements are not guarantees of
performance or results. They involve risks, uncertainties (some of
which are beyond the Company’s control), and assumptions.
Management believes that these forward-looking statements are based
on reasonable assumptions.
Factors which could have a material adverse effect on the
Company’s operations and future prospects include, but are not
limited to, changes in economic conditions generally and the real
estate market specifically, legislative/regulatory changes
(including changes to laws governing the taxation of real estate
investment trusts), availability of capital, risks associated with
debt financing, interest rates, competition, supply and demand for
hotel rooms in the Company’s current and proposed market areas,
policies and guidelines applicable to real estate investment
trusts, risks related to uncertainty and disruption in global
economic markets as a result of COVID-19 (commonly referred to as
the coronavirus), and other risks and uncertainties described in
the Company’s filings with the Securities and Exchange Commission.
These risks and uncertainties should be considered in evaluating
any forward-looking statements contained or incorporated by
reference herein. The Company cautions readers not to place undue
reliance on any forward-looking statements included in this press
release which speak only as of the date of this press release, and
disclaims a duty to provide an update to forward-looking
statements, whether as a result of new information, future events
or other occurrences.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200409005437/en/
Arinn Cavey Chief Financial Officer acavey@trustcondor.com (402)
316-1008
Condor Hospitality (AMEX:CDOR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Condor Hospitality (AMEX:CDOR)
Historical Stock Chart
From Apr 2023 to Apr 2024