NORFOLK, NEBRASKA—On Friday, Condor Hospitality Trust, Inc. announced that it has terminated its merger agreement with NHT Operating Partnership, LLC, the operating partnership of NexPoint Hospitality Trust, and certain of its affiliates, effective September 18, 2020.
In July 2019, NexPoint Hospitality Trust (NHT) and Condor Hospitality Trust announced the execution of a definitive agreement under which NHT’s operating partnership, NHT Operating Partnership, would acquire all of the outstanding equity interests of Condor and its operating partnership by merger for a total of approximately $318 million. Under the deal, NHT would acquire 15 select-service and extended-stay hospitality properties, representing 1,908 guestrooms across eight U.S. states.
Condor reported publically that the company terminated the merger agreement due to “failure of NHT’s operating partnership to consummate the acquisition of the company and for material breaches of the merger agreement by NHT’s operating partnership and its affiliates.” Pursuant to the merger agreement, the company is entitled to receive a termination fee of $11,925,000 within five business days of its termination of the merger agreement.
