BETHESDA, Md. — NexPoint Hospitality Trust (NHT) and Condor Hospitality Trust announced the execution of a definitive agreement under which NHT’s operating partnership, NHT Operating Partnership, will acquire all of the outstanding equity interests of Condor and its operating partnership by merger for a total of approximately $318 million.
NHT will acquire 15 select-service and extended-stay hospitality properties, representing 1,908 guestrooms across eight U.S. states. The transaction will expand NHT’s geographic footprint into Georgia, Kansas, Kentucky, Maryland, Mississippi, and South Carolina and increase its presence in Florida and Texas. Following the closing of the transaction, 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. The transaction instantly expands NHT’s geographical footprint and balances NHTs strategic value-add portfolio with durable, core, extended-stay hotels,” said Jim Dondero, NHT’s CEO. “We believe the future for quality extended-stay and select-service hotels remains bright.”
“We are pleased with our strategic alternatives process concluding with a transaction we believe is attractive for our shareholders,” said Bill Blackham, Condor’s CEO. “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.”
Completion of the transaction, which is expected to occur in the fourth quarter of 2019, is subject to customary closing conditions, including the approval of Condor’s common and preferred shareholders.