Condor Hospitality Trust’s Shareholders Approve $318M Merger with NexPoint
BETHESDA, MD. — Shareholders of Condor Hospitality Trust Inc., a lodging REIT based in Bethesda, have approved the proposed $318 million merger between Condor and NexPoint Hospitality Trust, a hotel REIT headquartered in Toronto. NexPoint and Condor expect the merger to close in the fourth quarter. As part of the deal, NexPoint will acquire Condor’s outstanding equity interests and operating partnership.
“The transaction instantly expands [our] geographical footprint and balances NexPoint’s value-add portfolio with extended-stay hotels,” says Jim Dondero, CEO of NexPoint. “We believe the future for quality extended-stay and select-service hotels remains bright.”
The shareholders of Condor (NYSE: CDOR) held a special meeting on Monday, Sept. 23 whereby 81.8 percent of the shares of Condor common stock voted in favor of adopting and approving the merger agreement, which NexPoint announced in late July.
The merger allows NexPoint to enter several new markets, including Georgia, Kansas, Kentucky, Maryland, Mississippi and South Carolina. The move will also expand the REIT’s presence in Florida and Texas.
Condor Hospitality Trust currently owns 15 hotels in eight states totaling more than 1,900 rooms. The hotel flags in the company’s portfolio includes Hilton, Marriott and InterContinental Hotels Group (IHG).
NexPoint Hospitality Trust began operations in January 2019 and now owns 11 hotels in Seattle, Portland, Dallas, Nashville and St. Petersburg, Fla., including brands such as Marriott, Hilton and IHG. NexPoint Real Estate Advisors LP, an affiliate of Highland Capital Management LP, externally advises NexPoint Hospitality Trust.
KeyBanc Capital Markets Inc. is acting as financial advisor to Condor in the transaction. Winston & Strawn LLP and Goodmans LLP are acting as legal counsel to NexPoint, and McGrath North Mullin & Kratz PC LLO is acting as legal counsel to Condor.
Condor’s stock price closed on Monday at $11.09 per share, up from $10.40 a year ago.
NexPoint began trading on the TSX Venture Exchange in early April. The company’s stock price closed on Monday at $5 per share, down from $5.10 since on April 3.
— John Nelson