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Condor Hospitality Trust in Discussions NexPoint Hospitality Trust on Merger Close
Wednesday 25 March 2020

25 March 2020 - Maryland, US-based hotel-focused real estate investment trust Condor Hospitality Trust, Inc. (NYSE American: CDOR) is in discussions about the close of its merger by NexPoint Hospitality Trust (TSX Venture: NHT-U) after blowing through previous deadlines, the company said.

Last December, the companies said the deal would close on 31 January. Then, the date was extended to March 23, 2020, which also passed.

Condor said it is in discussions with NHT concerning the closing of the acquisition, and the company is also reviewing its options and reserves all rights under the merger agreement.

This deal was announced last July.

The total consideration payable pursuant to the transaction will be satisfied by a combination of cash and debt, including the assumption of certain debt. The transaction is an arm's length transaction and no non-arm's length party of NHT holds any interest in Condor or its assets.

The merger consideration of USD 11.10 per share will be paid to holders of shares of common stock, representing a premium of approximately 34% over Condor's unaffected share price of USD 8.27 as of July 19, 2019, the most recent trading day before the public announcement of the proposal to acquire Condor.

In line with NHT's growth strategy, NHT will acquire 15 select-service and extended stay hospitality properties, representing 1,908 guestrooms across eight US 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 closing of the transaction, NHT's gross asset value is expected to increase to approximately USD 700m.

NexPoint Hospitality Trust (TSX Venture: NHT.U) is focussed on acquiring, owning and operating hospitality properties in the United States. NHT owns 11 branded properties sponsored by Marriott, Hilton and InterContinental Hotels Group, located across the US.

Condor Hospitality Trust, Inc. (NYSE American: CDOR) is a self-administered real estate investment trust that specialises 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 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.

KeyBanc Capital Markets, Inc. is acting as financial advisor to Condor. Winston and Strawn LLP and Goodmans LLP are acting as legal counsel to NHT and McGrath North Mullin and Kratz, PC LLO is acting as legal counsel to Condor.
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Date Published: 25/03/2020

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