NexPoint Hospitality Trust (NHT) provides update on Condor acquisition

Eloise Hanson Eloise Hanson Uploaded 29 October 2019

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US: NHT and Condor continue to actively seek to satisfy customary closing conditions, with the merger set to be completed in the fourth quarter of 2019.

Shareholders of Condor approved the merger on September 23, 2019.

The merger is expected to provide a number of benefits to NHT's existing portfolio, including:

  • Increased scale
  • Geographic diversification
  • Brand diversification
  • More exposure to extended stay assets
  • Higher occupancy
  • More stable cash flows
  • New portfolio with upside revenue growth potential

NHT is targeting estimated 2020 revenue of USD $150-170 million; an estimated Net Operating Income of $57-64 million; an estimated Funds from Operations of $32-36 million; and an estimated Adjusted Funds from Operations of $25-30 million.

These 2020 targets are subject to several assumptions, including that NHT will be able to achieve approximately $6 million of general and administrative expense savings following the merger.

NHT will constitute a financial outlook in order to provide guidance to investors on the expected financial impact on NHT of the acquisition of Condor.

NexPoint Hospitality Trust is a publicly traded real estate investment trust. It owns 11 branded properties sponsored by Marriott, Hilton and InterContintental Hotels Group, located across the US.

Condor Hospitality trust is a self-administered real-estate investment trust. It currently owns 15 hotels in eight states, franchised also by Hilton, Marriott, and InterContinental.

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