DALLAS and TORONTO — NexPoint Hospitality Trust (NHT) provided an update this week on the previously announced acquisition of Condor Hospitality, Inc. NHT expects that the merger will be completed sometime in the fourth quarter of 2019, subject to closing conditions. Shareholders of Condor approved the merger on September 23, 2019.
Through the merger, NHT would add 15 select-service and extended-stay hotels across eight U.S. states to its portfolio, expanding its footprint into Georgia, Kansas, Kentucky, Maryland, Mississippi, and South Carolina and increasing its presence in Florida and Texas.
In addition to increasing the scale of NHT’s portfolio by 1,908 keys, benefits of the merger would include 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, bringing NHT’s average property age down from 26 years to 16 years.
